Uber And Lyft To Resolve New York Wage Theft Claims With $328 Million
According to a news report by Reuters, Uber and Lyft will be paying a total of $328 million as a settlement amount. This monetary settlement amount is to address the Attorney General’s allegations. The AG of New York has accused the ride-sharing companies of depriving its drivers of their share of fair pay and benefits.
The AG, Letitia James, stated that Uber has agreed to pay a sum of $290 million in the form of damages. On the other hand, Lyft is set to pay $38 million to resolve the dispute. The investigation against the ride-sharing companies was conducted by the office of the AG. James has described this settlement to be the most significant and successful wage theft resolution in the history of her office.
As part of the settlement, drivers will be getting a minimum hourly rate. They will also be entitled to paid sick leave. Drivers will now be able to access notifications and in-app chat support. Here, they can seek clarification on their earnings and working conditions.
The Inquiry by Attorney General James addressed allegations that Uber and Lyft imposed certain illegal taxes and fees. They collected these taxes from New York drivers and not the passengers. More than 100,000 current and former drivers will benefit from these settlements.