Quantcast

Uber and Lyft drivers urged to claim funds from $328 million settlement

LEGAL NEWSLINE

Wednesday, January 8, 2025

Uber and Lyft drivers urged to claim funds from $328 million settlement

State AG
Webp i4xgh2562ih9cnekf2tyee0jqf9s

Attorney General Letitia James | Ballotpedia

New York Attorney General Letitia James has called on Uber and Lyft drivers who believe they were underpaid to file claims for compensation by January 31, 2025. This follows a settlement in November 2023, where the Office of the Attorney General (OAG) secured $328 million in back payments from Uber and Lyft after an investigation found funds were withheld from drivers.

Attorney General James stated, “Rideshare drivers help keep New York moving and deserve full and fair compensation for their hard work.” She urged eligible drivers to submit claims online before the deadline to reclaim their earnings.

The settlement includes $290 million from Uber and $38 million from Lyft. It also established a minimum driver earnings floor, paid sick leave, proper hiring notices, and other improvements. Drivers who worked for Uber between 2014-2017 or Lyft between 2015-2017 may qualify for these funds.

From 2014 to 2017, Uber deducted sales taxes and Black Car Fund fees that should have been covered by passengers. Similarly, Lyft deducted an "administrative charge" equivalent to sales tax and fees that riders should have paid. Both companies failed to provide paid sick leave as required by New York law.

Under the settlement terms, Uber and Lyft must ensure a minimum pay rate of $26 per hour outside New York City, adjusted annually for inflation. They must also offer guaranteed paid sick leave, provide detailed ride payment information, support multiple languages through in-app chat support, issue proper hiring notices and earnings statements, and allow drivers to appeal deactivations.

Over 100,000 drivers are eligible for these benefits. As of December 18th last year, more than 88,000 claims had been filed. Drivers can file claims through the designated portals or contact Rust Consulting if they encounter issues.

For further assistance regarding the settlements with Uber or Lyft or additional information about the settlements' details can be sought from respective contacts provided by Attorney General James's office.

ORGANIZATIONS IN THIS STORY

More News