The State of New York fined both Uber and Lyft over $320 million to settle what could be the largest wage theft allegation. This decision was made by New York's Attorney-General Letitia James on Thursday, Nov. 2.
Rideshare drivers demonstrate against rideshare companies Uber and Lyft during a car caravan protest on August 6, 2020, in Los Angeles. - The drivers, organized by the Mobile Workers Alliance and Rideshare Drivers United unions, say Uber and Lyft are pushing a "deceptive" November ballot initiative.
Aside from the drivers in New York City, Uber and Lyft employees who are outside NYC are also expected to benefit from the million-dollar settlement.
Here are other details shared by New York's officials about the wage theft settlement of the two ride-hailing companies.
New York Fines Uber, Lyft $328 Million
According to the Associated Press, the New York attorney-general said that the combined fines imposed on Uber and Lyft are exactly $328 million.
James explained that the settlements agreed upon by the two American ride-hailing firms will resolve investigations into their habits of improperly charging drivers sales taxes and other fees.
The New York official added that these extra fees were supposed to be settled by customers. ABC News reported that the $328 million fine is considered the largest wage theft settlement that Letitia's office has secured.
Lyft was ordered to pay $38 million to New York while Uber agreed to settle the $290 million fine. New York officials said that the money that the two companies will provide will be distributed to drivers who were charged improperly.
This will apply to current and former drivers affected by the activities of Uber and Lyft. Aside from this, the ride-hailing firms also agreed to offer paid sick leaves and other benefits to NYC drivers.
The New York attorney-general also confirmed that drivers operating outside NYC will benefit from the settlement too. Those who are eligible for the $328 million wage theft settlement can file their claims to Uber and Lyft to receive the amount owed.
Uber, Lyft Allegedly Cheat Drivers for Years
After dropping off passengers at a Broadway play, Johan Nijman, a for-hire driver who runs his own service and also drives for Uber on the side, drives through the West Side of Manhattan on Wednesday evening, August 8, 2018, in New York City. On Wednesday, New York City became the first American city to halt new vehicles for ride-hail services.
Letitia James said that Uber and Lyft drivers work around the clock—night and day—to serve people by safely bringing them to their destinations.
But, she was disappointed with the improper charging activities of the two ride-hailing giants.
"For years, Uber and Lyft systemically cheated their drivers out of hundreds of millions of dollars in pay and benefits while they worked long hours in challenging conditions," said James.
Despite the accusations, Uber and Lyft were satisfied with the settlement, saying that this decision was a win for drivers and that they were proud of it.
"This is a win for drivers, and one we are proud to have achieved with the New York Attorney General's Office," said Lyft Chief Policy Officer Jeremy Bird.
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