Uber and Lyft to pay $328M to settle accusations of ‘stealing earnings’ from NY drivers

Uber and Lyft will pay $328 million to settle accusations from New York’s attorney general that the ride-sharing giants were “stealing earnings” from thousands of Big Apple drivers for years.

The massive sum — of which $290 million will be paid by Uber and the remaining $38 million will be paid by Lyft — accounts for back pay, paid sick leave, proper hiring and earnings notices and other improvements to drivers’ working conditions.

New York Attorney General Letitia James said more than 100,000 drivers throughout New York are entitled to receive settlement funds — implying an average payout of $3,280.

Newer drivers who began after 2017 are not eligible for any additional payments, though James assured that along with the settlement, Uber and Lyft have agreed to provide “new benefits for leave, payment, training and job support.”

These improved benefits– which include up to one week of paid sick leave per year — are set to take effect no later than Feb. 29, 2024.

Eligible drivers can file a claim to receive additional funds they are owed, James said.

The settlement marks the end of “multi-year investigations into Uber and Lyft, which found that the companies’ policies withheld hard-earned pay from drivers and prevented them from receiving valuable benefits available under New York labor laws,” James said in a statement.

“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 challenging conditions,” James said. “These drivers overwhelmingly come from immigrant communities and rely on these jobs to provide for their families.”

Uber also issued a statement in response to James’ settlement that laid out a new benefits model for its drivers, and said “the agreement is a win for drivers across New York State who can now enjoy both the flexibility that is so important to them, while also having new benefits and protections like a minimum earnings standard and paid sick leave.”

Jeremy Bird, Lyft’s Chief Policy Officer, also called the settlement a “win for drivers.”

“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,” Bird added.

Forms on the attorney general’s website say that Uber drivers looking for back pay must have been employed by the app between Nov. 10, 2014, and May 22, 2017, while Lyft drivers entitled to a portion of the settlement must have driven for the rideshare company in New York state between Oct. 11, 2015, and July 31, 2017.

Any drivers that are currently working for Uber or Lyft but were also employed within the listed time frame are also encouraged to fill out the claim with Rust Consulting, a settlement-consultation firm.

It’s unclear if offering better benefits will jack up the price of fares for Uber and Lyft riders, who have already asserted that surge pricing makes rides too expensive.

In September, New Yorkers fumed that the popular rideshare companies hiked up their prices as heavy rain and flooding pummeled the Big Apple.

When a rush-hour rainstorm swamped New York City and shut down large swathes of the subway system, some customers raged on social media that Uber and Lyft prices were soaring well over $100 across the five boroughs.

One Uber user noted the ride-care company was trying to charge her more than $80 to commute 10 minutes to work, while another person said their Lyft from Brooklyn to JFK airport was priced at nearly $200.

And over the summer, Uber’s own CEO was stocked by a $51.69 fare for a less-than-three-mile drive from downtown Manhattan to the West Side.

Wired editor-at-large Steven Levy took the Uber across town to interview Uber boss Dara Khosrowshahi, paying the eye-popping sum, which included tip, to travel just 2.95 miles.

“Oh my God. Wow,” Khosrowshahi exclaimed when he saw Levy’s receipt, the journalist said.