Ride-hailing companies Uber and Lyft will pay a combined $328 million to settle wage theft claims in New York, state Attorney General Letitia James announced on November 2, 2023. The settlement is the largest wage theft settlement in New York State history and resolves a multi-year investigation into the companies.

The investigation found that Uber and Lyft improperly charged drivers sales taxes and other fees when the costs should have been paid by customers. The companies also failed to provide paid sick leave to drivers, as required by New York law.

Under the terms of the settlement, Uber will pay $290 million and Lyft will pay $38 million. The money will be distributed to current and former drivers who worked for the companies in New York between 2016 and 2023.

In addition to paying restitution, Uber and Lyft have agreed to establish a minimum wage for drivers across the state and to provide paid sick leave. The minimum wage will be calculated based on the average hourly earnings of drivers in a given region, and paid sick leave will be accrued at a rate of 3.05 hours per 40 hours worked.

The settlement is a major victory for drivers, who have long complained that Uber and Lyft have been exploiting them. It is also a sign that state governments are willing to take action to protect workers in the gig economy.

Significance of the Settlement

The settlement is significant for several reasons. First, it is the largest wage theft settlement in New York State history. Second, it is the first time that Uber and Lyft have agreed to pay restitution to drivers for wage theft. Third, the settlement establishes a minimum wage and paid sick leave for drivers in New York, which is a first for the ride-hailing industry.

The settlement is also significant because it could have implications for other states and cities. If other governments follow New York's lead and take action to protect workers in the gig economy, it could lead to major changes in the way that companies like Uber and Lyft operate.

What Drivers Can Do

If you are a current or former Uber or Lyft driver in New York, you can learn more about the settlement and how to file a claim at the New York Attorney General's website. The deadline to file a claim is December 31, 2023.

You can also contact a lawyer to discuss your legal options. If you believe that you have been a victim of wage theft, you may be entitled to additional compensation beyond what is provided by the settlement.