Rideshare companies Uber and Lyft will pay a combined $328 million to settle wage theft claims in New York, state Attorney General Letitia James announced on Nov. 2.
Uber will pay $290 million, and Lyft will pay $38 million into two separate settlement funds that will be distributed to current and former drivers.
The settlements will institute a minimum earnings floor, paid sick leave, proper hiring and earnings notices, and other improvements in drivers' working conditions, James said.
From 2014 to 2017, Uber deducted sales taxes and Black Car Fund fees from drivers' payments when those taxes and fees should have been paid by passengers, James said. The Black Car Fund is a nonprofit organization created by New York State to protect for-hire drivers and passengers. It provides safety and health programs and workers' compensation insurance to black car and limousine drivers.
Uber misrepresented the deductions made to drivers' pay in their terms of service, telling drivers that Uber would only deduct its commission from the drivers' fares, and that drivers were entitled to charge the passenger for any tolls, taxes or fees incurred, although no method to do so was provided via the Uber Driver app, James said.
Lyft employed a similar method to shortchange drivers from 2015 to 2017, deducting a 11.4 percent administrative charge from drivers' payments in New York equal to the amount of sales tax and Black Car Fund fees that should have been paid by passengers. Uber and Lyft...
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