Uber and Lyft have agreed to pay a combined $328 million in settlements following a wage theft investigation by the New York attorney general’s office. According to New York AG Letitia James, the companies’ policies “systematically cheated their drivers out of hundreds of millions of dollars in pay and benefits.” They’ll both now have to pay settlement funds to more than 100,000 current and former drivers in New York, and offer both minimum hourly pay rates and paid sick leave.
In the two settlements, Uber has to pay $290 million, while Lyft must pay $38 million. The AG’s office found both Uber and Lyft shortchanged drivers by deducting sales taxes from drivers’ commissions that should have been paid by riders between 2014 and 2017. They also did not offer paid sick leave. As a result of the settlement, drivers outside of New York City will be guaranteed an earnings floor of $26 per hour (NYC drivers already have minimum rates under Taxi & Limousine Commission reg
