Attorney General Letitia James’ office announced in November that Uber and Lyft agreed to pay a combined $328 million to settle allegations they “unlawfully withheld wages from drivers and failed to provide mandatory paid sick leave in New York state.” Uber will pay $290 million and Lyft will pay $38 million.
More than 100,000 drivers in the state could be eligible to receive the funds and benefits secured under the agreements, James’ office said. Drivers will be notified by mail, email or text about how to file a claim.
The settlements, which resolve multiyear investigations, reflect the companies’ latest concessions in a standoff with regulators about oversight and what they owe their drivers. The AG’s office alleged the companies incorrectly deducted charges from drivers’ wages that should have instead been charged to passengers. For example, the office said that from 2014 to 2017 Uber deducted sales taxes and Black Car Fund fees from drivers’ paychecks and misrepresented that it would do so in its terms of service. Lyft, the AG alleged, deducted an 11.4% administrative charge that equaled the amount of the sales tax and Black Car Fund fees between 2015 and 2017. Both companies also failed to provide paid sick leave as required under state and New York City law, James alleged.
“We want to take this opportunity to be clear that The Black Car Fund is not involved in this settlement in any way,” the organization announced. “The Black Car Fund charges passengers – not drivers – with a surcharge that pays for benefits for drivers. Drivers are never charged a fee by The Black Car Fund.”
For more information on the legal agreement between the Attorney General, Uber and Lyft, as well as information on how to check your eligibility and file a claim, please visit: https://ag.ny.gov/lyft-uber-settlement.
For more information about The Black Car Fund and the benefits it provides, visit: https://www.nybcf.organd https://ny.driversbenefits.org.
Uber and Lyft both called the agreements with the AG a “win” in statements following the announcement, and both denied wrongdoing.
Sources: CNBC, The Black Car Fund
