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Sunday, April 19, 2026

Uber, Lyft to pay $328 million to settle New York wage theft claims - Reuters

  • Companies

NEW YORK, Nov 2 (Reuters) - Uber (UBER.N) and Lyft (LYFT.O) will pay a combined $328 million to settle claims by New York's attorney general that the ride-sharing companies systematically cheated drivers out of pay and benefits.

Attorney General Letitia James said Uber will pay $290 million and Lyft will pay $38 million to resolve her office's multi-year investigation into the companies, calling it the largest wage theft settlement in her office's history.

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Drivers will also be guaranteed minimum hourly rates and paid sick leave. They will be given notices and in-app chat support to address questions about earnings and other working conditions.

James' probe addressed claims that Uber and Lyft improperly collected some taxes and fees from New York drivers rather than passengers.

It also addressed the companies' practices of classifying drivers as independent contractors instead of employees.

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More than 100,000 current and former drivers in the state are eligible to benefit from the settlements.

"These settlements will ensure they finally get what they have rightfully earned and are owed under the law," James said in a statement.

Uber and Lyft, both based in San Francisco, denied wrongdoing, and called their settlements a "win" for drivers.

Tony West, Uber's chief legal officer, in a statement said Uber's settlement "helps put to rest" the classification issue and...



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