New York Attorney General Letitia James on Thursday announced she has reached legal settlement deals with Uber and Lyft totaling $328 million.
The rideshare companies were accused of systematically cheating their drivers out of salary and benefits such as sick leave, Reuters reported. Uber agreed to pay $290 million for its alleged violations occurring from 2014 to 2017, and Lyft will pay $38 million to resolve the dispute arising from its alleged 2015 to 2017 violations.
Uber, Lyft to pay $328 million to settle New York wage theft claims https://t.co/5yrsqeBQWE pic.twitter.com/nx7TvjyIOe
— Reuters (@Reuters) November 2, 2023
The two companies also agreed to guarantee their employees minimum hourly rates, paid sick leave and the ability to notice and comment about questions regarding their earnings and other working-related items, the outlet reported.
“These settlements will ensure they finally get what they have rightfully earned and are owed under the law. 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,” James said in a press release.
Uber had for years been advocating for a change in “the status quo” in terms of worker benefits, according to a press release from the company. Uber said it sees this agreement with the New York attorney general as building towards that goal.
“We look forward to continuing this work in order to provide New York drivers the independence and full range of benefits available to those in other states, like California and Washington,” Lyft’s Chief Policy Officer Jeremy Bird said in a press release.
The New York attorney general, a Democrat, filed suit against former President Donald Trump in September 2022, accusing Trump and his business associates of fraud and alleging they overvalued Trump’s assets. Trump is the Republican Party’s current frontrunner for the 2024 presidential nomination.