NY Lyft, Uber Drivers Face Deadline To Claim Part Of $328M Settlement

NEW YORK — Attorney General Letitia James is urging Uber and Lyft drivers to file claims to receive funds from a $328 million settlement before the upcoming deadline.

The New York AG today encouraged rideshare drivers who believe they were underpaid by Uber or Lyft to file claims before the Jan. 31, deadline to receive the funds they are due under settlements reached by the Office of the Attorney General (OAG).

In November, James secured $328 million in back payments for drivers after an investigation by her office found that Uber and Lyft withheld funds from drivers and failed to provide required benefits.

See: NY Reclaims $328M Of Earnings 'Cheated' From Drivers By Uber And Lyft

James has extended the deadline to file claims for those settlement funds to January 31, at 11:59 p.m., giving rideshare drivers time to check their eligibility and submit a claim online before the deadline.

"Rideshare drivers help keep New York moving and deserve full and fair compensation for their hard work," James said. "I am proud to have secured this landmark settlement with Uber and Lyft and to be returning these funds to the drivers that rightfully earned them. I urge any Uber or Lyft driver who believes they may be eligible to file a claim now to get their money back before the deadline on January 31, 2025. My office will always fight to ensure workers in New York receive the treatment, benefits, and wages they are due."

The OAG reached a $290 million settlement with Uber and a $38 million settlement with Lyft last year.

New Yorkers who drove for Uber between 2014 and 2017 or Lyft between 2015 and 2017 could be eligible to receive money from the settlement funds, which are being entirely distributed to current and former drivers.

From 2014 to 2017, Uber deducted sales taxes and Black Car Fund fees from drivers' payments when those taxes and fees should have been paid by passengers, according to the AG. Uber misrepresented the deductions made to drivers' pay in their terms of service, telling drivers that Uber would only deduct its commission from the drivers' fares, and that drivers were "entitled to charge [the passenger] for any tolls, taxes or fees incurred," though no method to do this was ever provided via the Uber Driver app, James said.

Lyft employed a similar method that shortchanged drivers from 2015 to 2017, deducting an 11.4 percent "administrative charge" from drivers' payments in New York equal to the amount of sales tax and Black Car Fund fees that should have been paid by riders, investigators found.

Uber and Lyft also failed to provide drivers with paid sick leave available to employees under New York City and New York state law.

In addition to paying a total of $328 million in back pay to former drivers, Attorney General James required Uber and Lyft to institute an "earnings floor," that guarantees drivers are paid a minimum rate from dispatch to completion of the ride. Drivers outside of New York City now receive a minimum of $26 per hour, adjusted annually for inflation. The settlement marks the first time that Uber and Lyft drivers working primarily outside of New York City are guaranteed minimum pay.

Thanks to the agreement, Uber and Lyft drivers also now receive guaranteed paid sick leave, earning one hour of sick pay for every 30 hours worked, up to a maximum of 56 hours per year. The companies must also notify drivers of the amount paid by the rider after each ride, offer in-app chat support for drivers in multiple languages, and provide drivers with proper hiring notices and earnings statements. In addition, drivers will now be able to appeal all deactivations from the Uber and Lyft platforms.

More than 100,000 drivers in New York are eligible to receive settlement funds and the benefits afforded to them under these historic settlements. As of December 18, over 88,000 claims have already been filed, according to the OAG.

To file a claim for backpay, drivers can visit the Uber or Lyft settlement portals.

Anyone experiencing an issue filing a claim should contact Rust Consulting directly. Drivers with questions about the Uber settlement can contact 1-800-625-2332 or the the Uber settlement website, and drivers with questions about the Lyft settlement can contact 1-800-433-5314 or the Lyft settlement website.