Uber, Lyft to Pay New York $328 Million Over Wage-Theft Claims -- Update
02 Novembro 2023 - 10:12AM
Dow Jones News
By Dean Seal
Uber and Lyft have agreed to pay a combined $328 million to
resolve the New York attorney general's allegations that the
ride-hailing giants cheated drivers out of their wages.
Attorney General Letitia James said Uber will pay $290 million
while Lyft will pay $38 million to resolve claims that the
companies' policies withheld pay from drivers and prevented them
from receiving valuable benefits available under New York's labor
laws.
The settlement funds will be transferred to current and former
drivers in the form of back pay.
The resolution also provides for a minimum driver "earnings
floor," along with paid sick leave, proper hiring and earnings
notices, and other improvements to driver working conditions, the
AG's office said.
Both Uber and Lyft deny any wrongdoing.
The drivers affected by the alleged misconduct largely came from
immigrant communities and rely on their driving jobs to provide for
their families, James said in a statement.
James's office alleges that between 2014 and 2017, Uber deducted
sales taxes and certain fees from drivers' earnings when they
should have been paid by passengers. Between 2015 and 2017, Lyft
similarly deducted an 11.4% administrative charge from drivers'
payments that was equal to the amount of sales tax and fees that
should have been paid by riders, the AG's office said.
Both ride-hailing companies also failed to provide drivers with
paid sick leave, according to the attorney general.
Lyft said in a blog post that it has always correctly classified
drivers as independent contractors and that the fees it charged
drivers between 2015 and 2017 complied with applicable laws.
Tony West, Uber's chief legal officer, said the settlement
resolves concerns around the classification of ride-hailing drivers
in New York and provides drivers with more flexibility as well as
new benefits and protections.
"We thank Attorney General James and her team for their hard
work in delivering a resolution that balances accountability and
innovation while addressing the true needs of these hard-working
drivers in New York," West said.
Write to Dean Seal at dean.seal@wsj.com
(END) Dow Jones Newswires
November 02, 2023 08:57 ET (12:57 GMT)
Copyright (c) 2023 Dow Jones & Company, Inc.
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