Ride-sharing firms Uber and Lyft will pay $328m (£269m) to settle claims they “systematically cheated” New York drivers out of pay and benefits.
It resolves a long investigation by the New York attorney general, who called it the largest wage theft settlement in her office’s history.
The agreement also means that drivers in the state will receive guaranteed paid sick leave.
The agreement also means that drivers in the state will receive guaranteed paid sick leave.
The settlement means that neither company has to admit fault, with Uber paying $290m as part of it, while Lyft will pay $38m. Both have denied any wrongdoing and praised the announcement.
It comes as part of a long-running debate over whether the ride-sharing apps in the “gig economy” should class drivers as employees or as self-employed workers.
“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,” New York attorney general Letitia James said in a statement.
Her office looked into claims that that Uber and Lyft improperly deducted taxes and fees from New York drivers, rather than their passengers, between 2014 and 2017.
It also alleged that the companies failed to provide drivers with paid sick leave, which employees are entitled to in New York law.
Ride-sharing firms Uber and Lyft will pay $328m (£269m) to settle claims they “systematically cheated” New York drivers out of pay and benefits.
The agreement also means that drivers in the state will receive guaranteed paid sick leave.
It resolves a long investigation by the New York attorney general, who called it the largest wage theft settlement in her office’s history.
The settlement means that neither company has to admit fault, with Uber paying $290m as part of it, while Lyft will pay $38m. Both have denied any wrongdoing and praised the announcement.
The agreement also means that drivers in the state will receive guaranteed paid sick leave.
The agreement also means that drivers in the state will receive guaranteed paid sick leave.
The settlement means that neither company has to admit fault, with Uber paying $290m as part of it, while Lyft will pay $38m. Both have denied any wrongdoing and praised the announcement.
It comes as part of a long-running debate over whether the ride-sharing apps in the “gig economy” should class drivers as employees or as self-employed workers.
“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,” New York attorney general Letitia James said in a statement.
Her office looked into claims that that Uber and Lyft improperly deducted taxes and fees from New York drivers, rather than their passengers, between 2014 and 2017.
It also alleged that the companies failed to provide drivers with paid sick leave, which employees are entitled to in New York law.
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