Uber, Lyft to Pay New York $328 Million Over Wage-Theft Claims

Uber and Lyft, two major ride-hailing companies, have agreed to pay a total of $328 million to settle claims that they violated New York state's labor laws by misclassifying their drivers as independent contractors. The settlement, which is the largest of its kind in the United States, will provide compensation to approximately 100,000 drivers who worked for Uber and Lyft in New York between 2014 and 2018.

Under the terms of the settlement, Uber will pay $200 million and Lyft will pay $125 million. The remaining $3 million will be paid by a third company, Juno, which was acquired by Gett in 2017. The settlement resolves a lawsuit that was filed by the New York attorney general's office in 2019, alleging that Uber and Lyft had violated state labor laws by failing to provide their drivers with minimum wage and overtime pay.

The settlement follows a similar agreement reached by Uber in California last year, which required the company to pay $20 million to settle a class-action lawsuit over wage theft claims. The California settlement also included provisions requiring Uber to provide its drivers with certain benefits, such as sick leave and disability insurance.

The New York settlement includes similar provisions, requiring Uber and Lyft to provide their drivers with access to benefits such as paid time off and disability insurance. The companies will also be required to provide their drivers with additional information about their earnings and expenses.

The settlement is a significant victory for New York's drivers, who have long argued that they should be classified as employees rather than independent contractors. By providing their drivers with access to benefits and protections, Uber and Lyft may be able to avoid future legal challenges over worker classification. However, the settlement does not address broader questions about the future of work in the gig economy, which continue to be a source of controversy and debate.