Michelle ThompsonDrivers rejoice over a “historic victory” as businesses settle after being charged of deducting pay and perks.
Uber and Lyft, two ride-sharing businesses, reached an unprecedented $328 million deal to resolve allegations that they had been depriving drivers of pay and benefits, including paid sick leave.
Following a complaint filed by the New York Taxi Workers Alliance (NYTWA) union, which claimed the companies were engaging in wage theft and were passing on taxes and fees to drivers instead of passengers, the New York state attorney general’s office announced the news, which came after a multi-year investigation. It was the biggest wage-theft settlement that the attorney general’s office had ever secured.
The majority of the settlement, $290 million, will go to Uber, while Lyft will give $38 million to both present and past drivers. Furthermore, a “earnings floor” guaranteeing a minimum wage of $26 per hour for drivers outside of New York City was agreed upon by Uber and Lyft. A minimum driver wage has already been established for drivers operating within these city limits due to rules imposed by the New York City Taxi & Limousine Commission (TLC). All drivers will have their earning floors yearly modified for inflation.
Lyft and Uber will also guarantee paid sick leave in addition to a minimum pay rate and a sizable payout.
The firms will also provide in-app chat help for drivers who speak several languages, alert drivers of the amount paid by the rider after each ride, and allow appeals to all deactivations from the Uber and Lyft platforms in order to increase openness around hiring and earnings.
Letitia James, the state attorney general of New York, said in a statement announcing the settlement: “For years, Uber and Lyft systematically cheated their drivers out of hundreds of millions of dollars in pay and benefits while they worked long hours in difficult conditions.” Most of these drivers are from immigrant backgrounds and depend on their employment to support their families. Through these agreements, people will eventually receive what the law owes them and what they have earned legally.
Drivers will receive notifications of distributions and claim submission instructions by mail, email, or text.
Bhairavi Desai, the executive director of the NYTWA, referred to the news of the Uber and Lyft settlement as “a historic victory”. Desai fought for cab drivers who held medallions to have their loans forgiven by predatory lenders.
“For years, New York City Uber and Lyft drivers have been cheated out of better living conditions, timely meals, rest, and leisure. Our union has been fighting to recover stolen wages for them,” Desai stated. “We’re grateful to Attorney General Letitia James for standing by workers, believing in our complaint, and realizing the urgency of this recovery. We’re proud to be the union that defends New York City drivers.”
Lyft’s chief policy officer, Jeremy Bird, referred to the payout as “a win for drivers.”
“This agreement builds upon New York’s long-standing leadership in offering drivers portable benefits through flexible earning opportunities with its Black Car Fund,” the governor stated. “We are eager to carry out more work to give drivers in New York the same freedom and comprehensive benefits that residents of other states, like California and Washington, enjoy.”
