Uber and Lyft have reached a settlement to pay a total of $328 million to resolve accusations that they unlawfully withheld wages from drivers and failed to provide mandatory paid sick leave in New York state.
Of this amount, Uber will pay $290 million, and Lyft will pay $38 million.
The settlement, the largest wage-theft settlement obtained by the New York State Attorney General’s office, will benefit over 100,000 drivers who may be eligible to receive funds and benefits as part of the agreement.
The settlement follows years of investigations and reflects the latest developments in the ongoing regulatory discussions about the oversight and treatment of ride-hailing drivers.
As part of the settlement, Uber and Lyft will implement changes in how they compensate drivers and provide benefits in New York state.
These changes include a guaranteed earning minimum of $26 per hour for drivers outside of New York City, guaranteed paid sick leave, and improved transparency in compensation breakdowns for drivers.
Source-CNBC
