Journey-hailing corporations Uber and Lyft pays a mixed $328 million US to settle wage theft claims in New York, Lawyer Normal Letitia James introduced Thursday.
James mentioned the settlements resolve investigations into the businesses improperly charging drivers gross sales taxes and different charges when the prices ought to have been paid by clients.
Uber pays $290 million US and Lyft pays $38 million US. The cash can be distributed to present and former drivers, she mentioned. The businesses have additionally agreed to supply drivers exterior of New York Metropolis with paid sick go away and provides drivers exterior of New York Metropolis a minimal wage of $26 per hour.
“For years, Uber and Lyft systemically cheated their drivers out of tons of of thousands and thousands of {dollars} in pay and advantages whereas they labored lengthy hours in difficult situations,” James mentioned in a press release.
Tony West, chief authorized officer for Uber, mentioned the settlement “helps put to relaxation the classification challenge in New York and strikes us ahead with a mannequin that displays the best way individuals are more and more selecting to work.”
Lyft’s chief coverage officer, Jeremy Hen, mentioned in a press release, “It is a win for drivers, and one we’re proud to have achieved with the New York Lawyer Normal’s Workplace.”