Uber and Lyft to Pay $328 Million in Wage Theft Case in New York

On Thursday, New York Attorney General Letitia James announced that ride-hailing companies Uber and Lyft will collectively pay $328 million to settle wage theft lawsuits in the state.

James stated that the settlements resolve investigations into the companies for unlawfully imposing taxes and other fees on drivers, even though these expenses were supposed to be covered by passengers.

Uber will pay $290 million, while Lyft will pay $38 million. According to James, the money will be distributed among current and former drivers. The companies have also agreed to provide paid sick leave to drivers outside New York and establish a minimum wage of $26 per hour for drivers outside New York.

"For years, Uber and Lyft have systematically cheated their drivers, depriving them of wages and benefits worth hundreds of millions of dollars while they worked long hours under arduous conditions," James said in a statement.

Tony West, Uber's Chief Legal Officer, stated that the agreement "helps resolve the classification issue in New York and moves us forward to a model that reflects how people increasingly choose to work."

Lyft's Head of Policy, Jeremy Berd, said in a statement, "This is a win for drivers, and we are proud to have achieved it alongside the New York Attorney General."