An Uber sign is displayed inside a car in Glenview, Ill., on Dec. 17, 2022. Ride-hailing companies Uber and Lyft will pay a combined $328 million to settle wage theft claims in New York, Attorney General Letitia James announced Thursday. (AP Photo/Nam Y. Huh, File)
Ride-hailing companies Uber and Lyft will pay a combined $328 million to settle wage theft claims in New York, Attorney General Letitia James announced Thursday.
James said the settlements resolve investigations into the companies improperly charging drivers sales taxes and other fees when the costs should have been paid by customers.
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 give drivers outside of New York City a minimum wage of $26 per hour.
“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," James said in a statement.
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.”
Lyft's chief policy officer, Jeremy Bird, said in a statement, “This is a win for drivers, and one we are proud to have achieved with the New York Attorney General’s Office.”
Chiza Vitta, Managing Director Global Analytics at S&P Global Ratings joined Cheddar to discuss S&P's recent Megatrend findings and other 2025 predictions.
Greg O'Hara CEO at Certares joined Cheddar to discuss his personal experience with Wellness Tourism and his predictions for the future of the growing industry.
Meghna Maharishi, Airlines Reporter at Skift, answers your biggest questions about what is happening since Spirit Airlines filed for bankruptcy. Watch!
Managing Director at Wells Fargo, Adam Davis, joins Cheddar to discuss how both the consumer and retailer are approaching shopping's busiest time of the year.