December 9, 2023


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Uber and Lyft pay $328 million to settle wage theft allegations

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Uber and Lyft pay $328 million to settle wage theft allegations

Uber and Lyft pay the value for dishonest drivers, amounting to lots of of thousands and thousands of {dollars} in wages over a number of years.

The 2 ride-hailing giants agreed to a $328 million settlement for labor violations – $290 million for Uber and $38 million for Lyft – New York Lawyer Basic Letitia James Announce today (November 2). Additionally they agreed to ascertain “a minimal driver earnings, paid sick depart, applicable employment and earnings notices, and different enhancements in drivers’ working circumstances.”

The complete refund quantity will probably be distributed to the drivers. Those that drove for Uber between November 2014 and Could 2017, and Lyft between October 2015 and July 2017, can verify if they’re eligible on… Website of the Office of the Attorney General (OAG)..

How Uber and Lyft stole drivers’ earnings

Uber made unfair deductions, together with gross sales taxes and black field charges, from drivers’ paychecks and misled them into believing that they had been entitled to cost (the passenger) for any charges, taxes, or charges incurred. Nonetheless, “no means to do that is offered through the Uber Driver app,” James’ assertion stated.

Likewise, Lyft deducted an 11.4% “administrative payment” from New York drivers’ funds, which is equal to the quantity of gross sales tax and black field charges that riders ought to have paid.

The 2 additionally failed to offer sick depart and related funds.

Wage theft settlements between Uber and Lyft New York, by the numbers

$26: The hourly minimal that drivers outdoors of New York Metropolis earn is adjusted yearly for inflation, “to make sure for the primary time that 1000’s of Uber and Lyft drivers who work primarily outdoors of New York Metropolis will probably be assured a minimal wage,” James stated. (Drivers working in New York Metropolis already earn a minimal driver wage beneath laws established by the Taxi and Limousine Fee (TLC) in 2019.)

Additionally $26: How a lot will drivers who full their journeys outdoors of New York Metropolis be paid per hour for sick depart?

1: One paid hour for each 30 hours labored, as much as a most of 56 hours per 12 months. Uber and Lyft may also permit drivers to request sick depart instantly by way of the apps.

$17: Hourly cost for sick depart for drivers who full journeys lined by TLC’s minimal driver wage guidelines, which is adjusted yearly for inflation.

100,000+: Present and former drivers throughout New York who will obtain the settlement funds and advantages afforded to them beneath these historic settlements.

90%: The drivers are in New York and they’re additionally immigrants in New York.

Two-thirds: Gig drivers in New York who work the job full time.

A non-exhaustive checklist of checks and balances for Uber and Lyft drivers

Uber and Lyft may also present drivers with applicable hiring notifications and earnings information, together with:

📝 Recruitment notices that specify the earnings that drivers are entitled to obtain,

💸 Earnings statements will element the compensation earned for every pay interval,

⏰ Notifications to drivers after every journey of the quantity paid by the passenger,

📱 Present in-app chat assist for drivers in a number of languages ​​to allow them to simply ask questions on their earnings or different working circumstances,

🔍 Giving drivers the power to enchantment all deactivations from the Uber and Lyft platforms.

(tags for translation) Uber

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