NY.- Uber and Lyft to Pay $328 Million in “Largest Wage Theft Settlement” NY, After the prosecution pointed out that these sites They “systematically defrauded” their drivers for years.
New York Attorney General Letitia James will pay Uber $290 million and Lyft $38 million in restitution to more than 100,000 affected drivers, New York Attorney General Letitia James announced in a statement Thursday.
Additionally, drivers for these utilities in New York receive sick days and minimum wage, among other benefits.
A report from the attorney general’s office found that from 2014 to 2017, the Uber block car fund was used to divert sales taxes and fees from driver payments to those taxes and fees paid by passengers.
For its part, Lyft used a similar method to defraud drivers from 2015 to 2017, deducting an 11.4% “administrative fee” from drivers’ fares in New York, according to the investigation.
An investigation by the attorney general’s office found that through these practices, the platforms “withheld drivers’ hard-earned wages and prevented them from receiving valuable benefits available under New York labor laws.”
“Drivers often come from migrant communities and depend on these jobs to support their families. “These contracts will ensure that they finally get what they have earned and what they are owed under the law,” James noted.
The attorney general also noted that his office will “ensure that companies operating in the so-called ‘collaborative economy’ do not deprive their workers of their rights or undermine laws intended to protect them.”