Uber and Lyft will pay compensation of $328 million to drivers: how to request payment
Over 100,000 Uber and Lyft drivers who had wages unlawfully withheld between 2014 and 2017 are eligible to receive compensation from the ride-hail services.
Uber and Lyft drivers in New York State are in luck. After a multiyear investigation by the state attorney general’s office and subsequent settlement, the ride-hail companies will have to pay a total of $328 million to the drivers who had their wages unlawfully withheld for sales taxes and Black Car Fund fees.
Those cost should’ve been shouldered by the customers but were instead paid by the drivers. In the case of Uber, the burden to collect the additional costs from the passenger was placed on drivers but without providing a method to do so through their app. Lyft charged New York drivers an 11.4 percent administrative commission, which was equal to the amount of sales tax and Black Car Fund fees that should’ve been paid by the customer.
Furthermore, both companies failed to provide drivers with paid sick leave which under New York City and New York state law is guaranteed to workers.
“For years, Uber and Lyft systemically cheated their drivers out of hundreds of millions of dollars in pay and benefits while they worked long hours in challenging conditions. This settlement will ensure they finally get what they have rightfully earned and are owed under the law,” said New York Attorney General Letitia James in a statement.
“My office will continue to make sure that companies operating in the so-called ‘gig economy’ do not deprive workers of their rights or undermine the laws meant to protect them.”
As part of the settlements Uber and Lyft will institute a minimum earnings floor, paid sick leave, proper hiring and earnings notices, along with other improvements in working conditions.
How to request payment?
Uber will pay $290 million, and Lyft will pay $38 million which will go into two separate settlement funds. The money will then be distributed to current and former drivers.
The over 100,000 impacted drivers whose wages were impacted by the sales tax and Black Car Fund fee deductions by Uber or the administrative charge in the case of Lyft may file a claim to recieve the compensation that they are due through from the following link.