Uber to Pay $290 Million in New York State Wage Theft Settlement
Current and former drivers for two rideshare companies could be eligible for cash under a settlement announced by the New York state attorney general's office.
Uber has agreed to pay $290 million for cheating drivers out of pay to which they were entitled. Lyft is to pay $38 million into a settlement fund.
Attorney General Letitia James said the money will be distributed to people who were cheated by the two companies.
The attorney general said investigations determined Uber and Lyft illegally withheld pay from drivers and prevented them from receiving benefits available under state laws.
Eligible drivers will be notified of the settlement by mail, email or text message. They will be able to file a claim to receive the money they are owed.
More than 100,000 Uber and Lyft drivers in New York state could receive cash and benefits under the settlements.
James said for years, the companies "systematically cheated their drivers out of hundreds of millions of dollars in pay and benefits while they worked long hours in challenging conditions."
As part of the settlements, Uber and Lyft will guarantee New York state drivers will be paid a minimum rate from the time they are dispatched to the completion of a ride.
Drivers outside New York City are to receive at least $26 an hour, adjusted annually for inflation.
The companies also will provide paid sick leave to drivers. They'll earn an hour of sick pay for every 30 hours worked - up to a maximum of 56 hours per year.
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