[US] Uber and Lyft will pay New York drivers $328m

Uber and Lyft have agreed to pay $328m to settle claims that they "systematically cheated" New York drivers out of pay and benefits, BBC News reports.

The agreement has resolved a long investigation by New York attorney general, Letitia James, who called it the largest wage theft settlement in her office's history.

The agreement will also reportedly see drivers in the state receiving guaranteed paid sick leave. Uber called it a "landmark", while Lyft said it was "a win for drivers", according to BBC News.

Under the settlement neither company has to admit fault. Uber will pay $290m as part of it, while Lyft will pay $38m. Both ride-sharing firms have denied any wrongdoing and praised the announcement.

The agreement is the latest chapter in a long-running debate over whether the ride-sharing apps in the "gig economy" should classify drivers as employees or self-employed workers.

"For years, Uber and Lyft systematically cheated their drivers out of hundreds of millions of dollars in pay and benefits while they worked long hours in challenging conditions," Ms James said in a statement.

Her office reportedly looked into claims that Uber and Lyft improperly deducted taxes and fees from New York drivers, rather than their passengers, between 2014 and 2017.

The claims also alleged that these companies failed to provide drivers with paid sick leave, which employees are entitled to under New York law.

"These drivers overwhelmingly come from immigrant communities and rely on these jobs to provide for their families," Ms James said.

"These settlements will ensure they finally get what they have rightfully earned and are owed under the law."

Ms James said that the money will go to "over 100,000 hardworking people", She encouraged eligible drivers to file a claim for funds they might be owed.

Uber also reportedly said that it would pay an undisclosed amount into New York State's unemployment insurance fund, so drivers and delivery workers have access to unemployment benefits if they find themselves out of work.

Uber said the October 31 agreement would serve as a "model for other states", putting into place rules allowing New York City drivers to receive up to 56 hours of paid sick leave per year.

Uber drivers outside New York will be entitled to an hour of sick leave at full pay for every 30 hours worked and a minimum wage of at least $26 per hour. The current earnings standard, which has been in place for several years, will remain for drivers in New York City.

Both companies reportedly described the announcement as a "win for drivers".

In addition, Lyft drivers outside New York City will earn a minimum of $26 per hour for "engaged time", while all of its New York drivers will be eligible to accrue paid sick leave, the firm said in a statement.

In 2021, the UK Supreme Court ruled that Uber drivers must be treated as workers rather than as self-employed contractors, who have fewer entitlements.

Uber responded by saying the ruling was "turning the page" on workers' rights and promised drivers would earn at least the National Living Wage.

Source: BBC News

(Quotes via original reporting)

Uber and Lyft have agreed to pay $328m to settle claims that they "systematically cheated" New York drivers out of pay and benefits, BBC News reports.

The agreement has resolved a long investigation by New York attorney general, Letitia James, who called it the largest wage theft settlement in her office's history.

The agreement will also reportedly see drivers in the state receiving guaranteed paid sick leave. Uber called it a "landmark", while Lyft said it was "a win for drivers", according to BBC News.

Under the settlement neither company has to admit fault. Uber will pay $290m as part of it, while Lyft will pay $38m. Both ride-sharing firms have denied any wrongdoing and praised the announcement.

The agreement is the latest chapter in a long-running debate over whether the ride-sharing apps in the "gig economy" should classify drivers as employees or self-employed workers.

"For years, Uber and Lyft systematically cheated their drivers out of hundreds of millions of dollars in pay and benefits while they worked long hours in challenging conditions," Ms James said in a statement.

Her office reportedly looked into claims that Uber and Lyft improperly deducted taxes and fees from New York drivers, rather than their passengers, between 2014 and 2017.

The claims also alleged that these companies failed to provide drivers with paid sick leave, which employees are entitled to under New York law.

"These drivers overwhelmingly come from immigrant communities and rely on these jobs to provide for their families," Ms James said.

"These settlements will ensure they finally get what they have rightfully earned and are owed under the law."

Ms James said that the money will go to "over 100,000 hardworking people", She encouraged eligible drivers to file a claim for funds they might be owed.

Uber also reportedly said that it would pay an undisclosed amount into New York State's unemployment insurance fund, so drivers and delivery workers have access to unemployment benefits if they find themselves out of work.

Uber said the October 31 agreement would serve as a "model for other states", putting into place rules allowing New York City drivers to receive up to 56 hours of paid sick leave per year.

Uber drivers outside New York will be entitled to an hour of sick leave at full pay for every 30 hours worked and a minimum wage of at least $26 per hour. The current earnings standard, which has been in place for several years, will remain for drivers in New York City.

Both companies reportedly described the announcement as a "win for drivers".

In addition, Lyft drivers outside New York City will earn a minimum of $26 per hour for "engaged time", while all of its New York drivers will be eligible to accrue paid sick leave, the firm said in a statement.

In 2021, the UK Supreme Court ruled that Uber drivers must be treated as workers rather than as self-employed contractors, who have fewer entitlements.

Uber responded by saying the ruling was "turning the page" on workers' rights and promised drivers would earn at least the National Living Wage.

Source: BBC News

(Quotes via original reporting)