{"id":2087913,"date":"2023-11-02T12:08:02","date_gmt":"2023-11-02T16:08:02","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/uber-and-lyft-agree-to-combined-328-million-settlement-for-ny-drivers-attorney-general\/"},"modified":"2023-11-02T12:16:17","modified_gmt":"2023-11-02T16:16:17","slug":"uber-and-lyft-agree-to-combined-328-million-settlement-for-ny-drivers-attorney-general","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/uber-and-lyft-agree-to-combined-328-million-settlement-for-ny-drivers-attorney-general\/","title":{"rendered":"Uber and Lyft settle with NY Attorney General for $328 million over driver dispute."},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">28<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fuber-and-lyft-agree-to-combined-328-million-settlement-for-ny-drivers-attorney-general%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2087913&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><blockquote>\n<h2>Rideshare Giants Uber and Lyft Settle for $328 \u200dMillion in Landmark Wage Theft \u200bCase<\/h2>\n<p>Rideshare companies Uber and Lyft agreed on Nov. 1\u2064 to a &#8220;landmark \u200csettlement&#8221; amounting\u200b to $328\u200b million \u200cfollowing allegations\u2064 that the firms were allegedly &#8220;cheating drivers out of hundreds of\u2064 millions of dollars&#8221; in earnings, \u2064announced the office of New York Attorney General Letitia James.<\/p>\n<p>Uber will pay $290 million and Lyft will pay $38 million as part of the settlement, which\u2063 the attorney general&#8217;s office said represents the &#8220;<a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/uber-lyft-to-pay-328-million-to-settle-new-york-wage-theft-claims\/\" title=\"Uber, Lyft to pay 8 million to settle New York wage theft claims\">largest wage theft settlement<\/a>&#8220;\u200c the\u200b office has ever won.<\/p>\n<p>Uber and Lyft\u2062 did not admit fault\u2063 in the settlement, which\u200b is the result of multiyear\u2063 investigations \u200cinto the \u2063San Francisco-based ride-hailing companies.<\/p>\n<\/blockquote>\n<h2>Related Stories<\/h2>\n<ul>\n<li>\n<h3><a href=\"http:\/\/www.theepochtimes.com\/us\/california-court-rules-ride-hailing-firms-including-uber-lyft-can-treat-drivers-as-contractors-5121175?ea_src=author_manual&#038;ea_med=related_stories\">California Court Rules Ride-Hailing Firms Including \u2064Uber, Lyft\u2064 Can Treat Drivers as Contractors<\/a><\/h3>\n<p>Published: 3\/14\/2023<\/p>\n<\/li>\n<li>\n<h3><a href=\"http:\/\/www.theepochtimes.com\/article\/uber-lyft-drivers-claim-price-fixing-in-lawsuit-against-companies-4552201?ea_src=author_manual&#038;ea_med=related_stories\">Uber, Lyft Drivers \u2063Claim Price-Fixing in Lawsuit Against Companies<\/a><\/h3>\n<p>Published: 6\/23\/2022<\/p>\n<\/li>\n<\/ul>\n<p>Ms.\u2064 James&#8217;s\u2064 office said the\u200c millions of dollars \u200bwill go to paying current and former back drivers affected\u2064 by the companies\u2019 alleged practices via two separate funds.<\/p>\n<p>More than 100,000 drivers in New \u2062York could be eligible to receive the funds and benefits established under the settlement agreement, according to the attorney \u2062general&#8217;s\u2064 office.<\/p>\n<p>In addition to the monetary settlement, both Uber and Lyft agreed to an &#8220;earnings floor,&#8221; \u200dguaranteeing\u200b drivers across the state are paid\u200d minimum hourly rates along with paid sick leave, proper hiring, and earnings notices.<\/p>\n<p>Both firms also agreed to other improvements to drivers\u2019 working conditions, the attorney general&#8217;s office said.<\/p>\n<p>Specifically, drivers will earn one hour of sick pay for \u200bevery 30 hours worked,\u2062 up\u200c to a maximum of 56 hours per year.\u2064 Drivers who complete rides outside of New York City will be paid a minimum of $26 per \u200dhour \u2063for sick leave, adjusted annually for inflation.<\/p>\n<div class=\"post-figure\" style=\"margin-left:0;margin-right:0;max-width:1200px\">\n<figure style=\"width:640px;margin-left:auto;margin-right:auto\" class=\"alignnone\"><figcaption>  \u2062New \u2063York Attorney General Letitia James \u200battends a press conference in New York City on July 31, 2023. (Michael\u200d M. Santiago\/Getty Images)<\/figcaption><\/figure>\n<\/div>\n<div class=\"my-5\">\n<h2>Rideshare Firms &#8216;Systematically Cheated Their Drivers&#8217;<\/h2>\n<p>Drivers operating in New York City already receive minimum \u200cdriver pay and some paid time off under regulations established\u2062 by the Taxi and Limousine Commission in 2019.<\/p>\n<\/div>\n<p>Ms. James&#8217;s office said drivers for both companies there will receive \u200b$17 per hour for\u200b sick leave, adjusted annually for inflation.<\/p>\n<p>&#8220;Rideshare drivers work at all hours of the day and night to take people wherever they need to go,&#8221; said \u2062Attorney General James. &#8220;For \u2062years, Uber and Lyft\u2063 systematically cheated their drivers out of hundreds of millions of dollars in pay and benefits while they <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/olympic-boxer-faces-death-penalty-over-alleged-kidnapping-murder-of-pregnant-girlfriend\/\" title=\"Olympic Boxer Faces Death Penalty Over Alleged Kidnapping, Murder Of Pregnant Girlfriend\">worked long hours<\/a> in challenging conditions.&#8221;<\/p>\n<p>The attorney general said\u200b the majority of drivers\u200d impacted by Uber&#8217;s and Lyft&#8217;s alleged behavior come \u2064from immigrant\u2064 communities and &#8220;rely on these jobs to provide for\u200c their families.&#8221;<\/p>\n<p>&#8220;These settlements will ensure they finally get what they have rightfully\u200d earned and are\u200c owed under the law. My \u2063office will continue\u200c to make sure \u200bthat companies operating in \u200dthe so-called \u2018gig economy\u2019 do not \u200bdeprive \u200dworkers of their rights or undermine the laws meant to\u2063 protect them,&#8221; the\u200d attorney general said.<\/p>\n<p>Ms. James&#8217;s office had alleged \u200cUber and Lyft, from 2014 to 2017, had improperly\u2064 deducted sales\u200c taxes\u200b and Black Car Fund fees for a worker&#8217;s compensation fund from drivers&#8217; payments, \u2064when passengers should have paid those charges instead.<\/p>\n<div class=\"post-figure\">\n<figure style=\"width:600px\" class=\"alignnone\"><figcaption>  A \u2064passenger walks near Uber \u2062signage after\u2064 arriving at Los Angeles International Airport in Los Angeles, Calif., on July 10, 2022. (David Swanson\/Reuters)<\/figcaption><\/figure>\n<\/div>\n<div class=\"my-5\">\n<h2>Uber, \u200dLyft Welcome Agreement<\/h2>\n<p>In\u200c addition,\u200d the attorney\u200d general&#8217;s office claimed that Uber misrepresented the deductions made\u2064 to drivers\u2019 pay in their terms of service, telling them \u200dthat the company would only deduct its commission from\u200c the drivers\u2019 fare\u2063 and that drivers were &#8220;entitled to charge [the passenger] for any tolls, taxes\u2062 or fees incurred,&#8221; \u200chowever, \u2062the company did not provide a method \u2064to do\u2064 this via the Uber Driver app.<\/p>\n<\/div>\n<p>Lyft, Ms. James&#8217;s office alleged, used a similar method to &#8220;shortchange \u200cdrivers,&#8221; \u2063deducting an 11.4 percent &#8220;administrative charge&#8221; \u2064from their payments that \u2064equaled the amount \u200dof \u2063the sales tax and Black Car Fund fees\u200c that\u2064 should have been paid by customers instead.<\/p>\n<p>Both\u2063 firms also\u200c did not \u200bprovide drivers with paid sick leave that they are entitled to \u200cunder New York City and New York state law, her office \u200calleged.<\/p>\n<p>Uber is among the food-delivery services that filed a lawsuit against New York City on\u2062 July\u200b 5 seeking\u200b to block a new law establishing higher minimum wages for food-delivery workers, <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/uber-and-lyft-agree-to-combined-328-million-settlement-for-ny-drivers-attorney-general\/\" title=\"Uber and Lyft settle with NY Attorney General for 8 million over driver dispute.\">including app-based \u2062delivery workers<\/a>.<\/p>\n<p>However, the company welcomed the &#8220;first-of-its-kind agreement&#8221; with the New \u200bYork attorney general&#8217;s office in a statement Thursday, \u2062calling it\u2064 a &#8220;win \u2063for\u2064 drivers across New\u2063 York \u200dState who can now enjoy both \u2064the\u200b flexibility that is so important to them, while\u2063 also having new\u2063 benefits and protections.&#8221;<\/p>\n<p>&#8220;This helps put to \u200crest \u200bthe classification issue in New York and moves us forward with a\u200c model that reflects the way people are increasingly\u2063 choosing\u2062 to work,&#8221; \u2062Uber said.<\/p>\n<p>Elsewhere, Jeremy Bird, Lyft\u2019s <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/chamber-of-commerce-urges-biden-to-heed-gop-concerns-over-covid-relief-package\/\" title=\"Chamber of Commerce urges Biden to heed GOP concerns over COVID relief package\">chief policy officer<\/a>, praised New York for being a &#8220;leader in providing drivers portable benefits through flexible earning opportunities with its Black Car Fund,&#8221; adding that the latest settlement &#8220;expands \u2062upon that \u200bfoundation.&#8221;<\/p>\n<div class=\"my-5\">\n  <em>Reuters contributed to this report.<\/em>\n<\/div>\n<p> <\/p>\n<h2> What are the implications of the\u200d Uber and \u2064Lyft settlement \u2063for wage theft in the gig economy?<\/h2>\n<p><span> <\/p>\n<h2>Implications of the Uber and Lyft Settlement for Wage Theft<\/h2>\n<p>The recent settlement reached\u200c by rideshare giants\u200d Uber and Lyft in a landmark wage theft case has shed light on \u2064the exploitation of drivers in the gig economy. The \u2063two companies have agreed to pay a total of $328 million to settle allegations that they cheated their drivers out of significant earnings.<\/p>\n<p>The settlement, announced by the office of New York Attorney General Letitia \u2064James, represents the largest wage theft settlement ever won by her office. Under the terms of the agreement, Uber will pay $290 million, while Lyft will pay $38\u200c million. Although \u200dneither company admitted fault, \u200cthe settlement comes after multiyear investigations into\u200d the practices of these San Francisco-based ride-hailing companies.<\/p>\n<p>The millions of dollars from \u2064the \u200bsettlement will be used to compensate current and former drivers who\u2063 were affected by the\u2062 alleged \u2064wage theft. The settlement establishes \u200ctwo separate funds to distribute the compensation. It\u2063 is estimated that\u200c over 100,000 drivers\u200b in New York \u200dcould be \u200celigible to receive funds and benefits as part of this settlement.<\/p>\n<p>In addition to monetary compensation, Uber\u200c and Lyft have agreed to improve drivers&#8217; working conditions. This includes implementing an &#8220;earnings floor&#8221; that guarantees drivers minimum hourly rates, paid sick leave, proper hiring, and earnings notices. These improvements aim to ensure that drivers \u2064are \u2063treated fairly and receive adequate compensation for \u200btheir work.<\/p>\n<p>Drivers\u2063 will now earn\u200d one hour of sick pay for every 30 hours worked, with a \u2063maximum of \u206256 hours per year. Drivers\u200b who complete rides outside of\u2064 New York City will receive a minimum of $26 per hour \u2063for\u2064 sick leave, adjusted annually \u2062for inflation.<\/p>\n<p>The settlement represents a significant step towards rectifying the exploitative practices that have plagued the gig economy. The attorney \u2064general&#8217;s \u200coffice argues that rideshare drivers, many\u2064 of whom come from immigrant communities, have relied on these jobs to support\u2062 their families.\u2064 By systematically cheating their drivers out of earnings and benefits, Uber\u200c and Lyft have perpetuated a cycle \u2063of poverty and hardship.<\/p>\n<p>Attorney General James emphasizes that these\u200c settlements will ensure\u2062 that drivers finally \u200dreceive the compensation they are entitled to under the\u2063 law. She vows to continue holding companies in the gig economy accountable and ensuring that\u200d workers\u2063 are not deprived of their rights or undermined by unscrupulous\u2063 practices.<\/p>\n<p>The case against Uber and\u2064 Lyft centered on allegations \u200cthat the companies improperly deducted \u200dsales taxes and Black \u2062Car Fund fees from drivers&#8217; payments. These charges should have been paid by passengers, \u2063according to the attorney general&#8217;s office.<\/p>\n<p>This groundbreaking settlement not only highlights \u200dthe issues of wage theft and exploitation in the \u200cgig economy but \u2063also serves as a precedent for future cases. \u200cIt sends a clear message to other companies operating\u2064 in the so-called gig economy that \u2064they must comply with labor laws and protect the rights of their workers.<\/p>\n<p>As the gig \u200beconomy continues to grow and influence the labor market, it is crucial for regulators, legislators, and companies to prioritize the fair treatment of workers. The Uber and Lyft settlement represents\u2064 a significant step\u2062 towards achieving\u200b this \u2063goal and <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/biden-to-announce-social-media-crackdown-citing-childrens-mental-health\/\" title=\"Biden to Announce Social Media Crackdown, Citing Children\u2019s Mental Health\">holding companies accountable<\/a> for wage theft in the gig economy.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Uber and Lyft reached a significant settlement of $328 million on Nov. 1. The agreement comes after accusations that the companies were depriving drivers of substantial earnings. New York Attorney General Letitia James confirmed that Uber will pay $290 million, while Lyft will pay $38 million.<\/p>\n","protected":false},"author":69,"featured_media":2087914,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[543],"tags":[],"class_list":["post-2087913","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-epoch-times"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2087913","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/69"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2087913"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2087913\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2087914"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2087913"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2087913"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2087913"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}