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Uber and Lyft have agree to pay drivers in New York a merge $ 328 million to settle wage - thieving complaints . The village is the resultant role of state attorney generalLetitia James ’ investigationinto whether the company collected certain fees and taxis from equipment driver rather than passengers .
The investigation also looked into whether companies failed to furnish paid unbalanced leave to drivers .
The colonisation is a profits for drivers , not only because it provides backpay for allegedly stolen reward , but also because it secures a statewide right to minimum wage and bring home the bacon paid unbalanced benefits .
“ The companies are all but formally acknowledging that these driver are in fact their employee who merit the employment rights all other worker merit , ” said Andrew Wolf , help professor at Cornell University ’s School of Industrial & Labor Relations . Wolf also noted that the settlement displays how gig troupe have historically shifted all the risks for employment onto driver .
“ Ride - parcel drivers work at all hours of the day and night to take multitude wherever they demand to go , ” James said in her statement . “ For geezerhood , Uber and Lyft systematically cheated their number one wood out of one C of millions of dollars in pay and benefits while they worked farseeing hr in challenging conditions . ”
Uber will give $ 290 million and Lyft will ante up $ 38 million into two pecuniary resource that will pay out claims to about 100,000 current and former drivers in New York State who are eligible to file .
Neither fellowship has admit to any wrongdoing . Lyft ’s chief insurance policy officer , Jeremy Bird , has even gone so far as to agree that the liquidation is “ a win for drivers , and one we are proud to have reach with the New York Attorney General ’s Office . ”
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“ We look forwards to carry on this study to provide New York drivers the independency and full range of benefits available to those in other states , like California and Washington , ” Bird continued .
Uber respond similarly , praising James ’ efforts andsayingthe colony “ helps put to catch one’s breath the classification progeny in New York and incite us forth with a modelling that reflects the way people are more and more choosing to work on . ”
Within hours of the AG ’s announcement , Governor Kathy Hochul also said Uber would start making regular payments to New York ’s unemployment insurance program as part of aseparate settlementwith the state ’s Department of Labor section .
New York has become a battleground commonwealth for gain trade union movement rights for gig workers , and these settlements allow ride - hail drivers more of the benefits owe to traditional employees . But labor activists reason there ’s still more work to be done .
Neither colonization shift gig actor status in New York State or New York City — drivers are still classify as sovereign contractors .
Future benefits of the wage-theft settlement
The settlement with the AG ’s office grants drivers one hour of sick pay for every 30 hours worked , up to 56 hours per class . Uber and Lyft will need to reserve drivers to request sick leave through the apps . Uber articulate drivers will start accruing fed up leave on February 29 , 2024 . Lyft did not respond in time to elucidate .
gadget driver outside the urban center will realize at least $ 26 per hour , but only while en route to a rider or with a rider in the vehicle . This preeminence has been a sticking point for labor activist , who argue that the time spent seek for a fizgig should also be paid sentence .
driver within NYC already received aminimum number one wood payunder regulations established in 2019 by the Taxi and Limousine Commission .
Uber said the additional costs would be pass onto riders . Lyft did not answer in time to clear up .
The AG ’s spot has been investigating the wage stealing title , made by the New York Taxi Workers Alliance , since 2020 . The probe focused on a stop from 2014 to 2017 , during which time Uber deduct sales taxis and Black Car Fund fees from number one wood payments , when those taxes and fee should have been give by passenger , according to a statement from the AG .
The Black Car Fund is a NYC organization that provides workers ’ compensation indemnity coverage for taxi , limousine and ride - hail vehicles . Uber and Lyft set out paying into it as part of a state legal philosophy in 2019 .
Lyft is also accused of infer an 11.4 % “ administrative charge ” from drivers ’ payments in New York adequate to the amount of gross revenue tax and Black Car Fund fee that should have been pay by riders .
Both companies are accused of fail to supply drivers with pay sick leave useable to employee under New York City and New York State law of nature .
Uber to pay employment insurance contributions
In addition to winning future employment insurance contributions , Uber ’s small town with the New York department of labor will also see the ride - hail behemoth make retroactive payments dating back through 2013 . The entire amount of the settlement is unknown .
The state has argued that Uber drivers and delivery workers characterize as employees for the purposes of amass unemployment welfare . That intend Uber is required , like other employers in New York , to get wee-wee quarterly payment into the state ’s Unemployment Insurance Trust Fund . This makes New York the first state in the body politic with which Uber has agreed to settle both preceding and succeeding unemployment policy liability .
“ This unprecedented settlement with Uber mail a knock-down message to working masses : New York has your back , ” Governor Hochul said in astatement .
Drivers and delivery workers for gig companies like Uber and Lyft are classified as independent contractors , meaning they do n’t have access to benefit like minimum wage protective cover , health care or workers ’ compensation in most states . That also means they have to cover all their own expenses .
Uber and Lyft have argued that drivers favor this arrangement because it allows them to have flexibility at work . Labor activists say it ’s a umbrageous elbow room for companies to keep costs low , even though they are drug-addicted on the armed service these workers provide for their companies to deliver the goods .
evaluator upholds $ 18 minimal earnings for NYC delivery workers
