Ride-hailing companies Uber and Lyft will pay a combined $328 million to settle wage theft claims in New York
File - An Uber sign is displayed inside a car in Glenview, Ill., on Dec. 17, 2022. , Attorney General Letitia James announced Thursday. ALBANY, N.Y. — — , Attorney General Letitia James announced Thursday.
Uber will pay $290 million and Lyft will pay $38 million. The money will be distributed to current and former drivers, she said. The companies have also agreed to provide drivers outside of New York City with paid sick leave and a minimum wage of $26 per hour. Tony West, chief legal officer for Uber, said the agreement “helps put to rest the classification issue in New York and moves us forward with a model that reflects the way people are increasingly choosing to work.”
Uber and Lyft have become ubiquitous in New York in the last several years, with the easy to use ride-hailing apps largely supplanting the city's iconic yellow taxi cabs. The companies have been slow to adjust to regulations that govern taxi services in cities such as New York and have balked at providing drivers basic labor protections and benefits.
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