|
Attorney General Letitia James said Uber will pay $290 million
and Lyft will pay $38 million to resolve her office's multi-year
investigation.
Drivers will also be guaranteed minimum hourly rates and paid
sick leave, and be given notices and in-app chat support to
address their questions about earnings and other working
conditions.
More than 100,000 current and former drivers in the state stand
to receive settlement funds and related benefits.
"This settlement will ensure they finally get what they have
rightfully earned and are owed under the law," James said in a
statement.
She called the accord with the San Francisco-based companies the
largest wage theft settlement in her office's history.
Uber and Lyft have long defended against claims nationwide that
they shortchange drivers, many of whom are immigrants, out of
pay and benefits, sometimes by classifying them as independent
contractors instead of employees.
James accused Uber and Lyft of improperly deducting sales taxes
and fees for a workers compensation fund from drivers' payments,
though passengers should have paid those amounts.
Uber's alleged violations occurred from 2014 to 2017, and Lyft's
from 2015 to 2017.
James said both companies also denied drivers sick leave that
state and New York City employees are legally entitled to
receive.
The probe arose from concerns from the New York Taxi Workers
Alliance, which says it represents about 21,000 yellow taxi,
green cab, app-based, livery and corporate car drivers.
Under the settlement, drivers outside New York City will receive
a minimum $26 per hour for rides and sick leave, adjusted
annually for inflation.
Drivers in New York City already receive minimum pay and some
paid time off, as required by the city's Taxi and Limousine
Commission. James said Uber and Lyft drivers there will receive
$17 per hour for sick leave, with inflation adjustments.
(Reporting by Jonathan Stempel in New York; Editing by Chris
Reese)
[© 2023 Thomson Reuters. All rights
reserved.]
This material may not be published,
broadcast, rewritten or redistributed.
Thompson Reuters is solely responsible for this content.
|
|
