Uber, Lyft Will Pay $328M For Stealing NY Drivers' Wages

NEW YORK CITY — Uber and Lyft will fork over a combined $328 million for stealing drivers' pay, said state Attorney General Letitia James.

The twin agreements announced Thursday not only are the largest wage theft settlements secured by James' office, but will drastically reshape rideshare drivers' lives in New York City.

Drivers cheated out of wages by Uber and Lyft will respectively receive $290 million and $38 million in back pay, according to the settlements.

"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 in a statement.

"These drivers overwhelmingly come from immigrant communities and rely on these jobs to provide for their families. These settlements will ensure they finally get what they have rightfully earned and are owed under the law."

The settlements end a probe by James' office into Uber and Lyft. Investigators found Uber from 2014 to 2017 deducted sales taxes and Black Car Fund fees from drivers' pay, while Lyft used a similar move from 2015 to 2017, officials said.

Under the settlements, the companies will have to provide guaranteed up to 56 hours of paid sick leave, which will be $17 per hour in the city. They will also provide hiring notices, earnings statements and in-app chat support in multiple languages for drivers who have questions about pay and other work conditions.