Key takeaways:
- Uber and Lyft have agreed to pay a combined $328 million to settle allegations of wage theft and failure to provide mandatory paid sick leave.
- Drivers will receive a minimum of $26 an hour in wages, adjusted annually for inflation, as well as mandatory sick leave.
- The settlement is estimated to benefit more than 100,000 drivers in New York.
New York State Attorney General Letitia James announced Thursday that ride-hailing companies Uber and Lyft have agreed to pay a combined $328 million to settle allegations of wage theft and failure to provide mandatory paid sick leave.
Under the settlement agreement, drivers will receive a minimum of $26 an hour in wages, adjusted annually for inflation, as well as mandatory sick leave. This marks the first time that Uber and Lyft drivers working primarily outside of New York City will be guaranteed minimum pay, something that drivers within the city have received since 2019, under regulations established by the Taxi & Limousine Commission.
The settlement is estimated to benefit more than 100,000 drivers in New York. Uber will pay $290 million and Lyft will pay $38 million.
“For years, Uber and Lyft systemically cheated their drivers out of hundreds of millions of dollars in pay,” said Attorney General James. “Today’s settlement marks a major victory for the drivers who have been denied the wages and benefits they are rightfully owed.”
The settlement is the latest in a series of actions taken by the Attorney General’s office to protect workers’ rights and ensure that companies are held accountable for their actions. The office is committed to ensuring that all workers in New York are treated fairly and paid the wages they are owed.
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