UNITED STATES

Uber and Lyft to pay $328 million to settle dispute over taxes and fees paid by New York drivers

Nov 3, 2023, 5:30 AM | Updated: 9:25 am

Uber sign...

File - An Uber sign is displayed inside a car in Glenview, Ill., on Dec. 17, 2022. (AP Photo/Nam Y. Huh, File)

(AP Photo/Nam Y. Huh, File)

ALBANY, N.Y. (AP) — Uber and Lyft will pay a combined $328 million to settle complaints that they improperly saddled their New York drivers with taxes and fees that should have been been paid by passengers, state Attorney General Letitia James announced Thursday.

The popular ride-hailing companies also agreed to establish a minimum wage and paid sick leave for drivers across the state.

Uber will pay $290 million and Lyft will pay $38 million, with the money distributed to current and former drivers, James said. The companies have also agreed to provide drivers outside of New York City with paid sick leave and a minimum wage of $26 per hour.

“Rideshare drivers work at all hours of the day and night to take people wherever they need to go,” James said in a statement. “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.”

In a separate announcement, New York Gov. Kathy Hochul said Uber has agreed to begin making quarterly payments to the state’s unemployment trust fund and will make a retroactive payment into the fund to cover dues it owed since 2013. The fund pays for benefits for unemployed workers.

State and federal laws block the disclosure of how much Uber will contribute to the fund, the governor’s office said.

Uber and Lyft have become ubiquitous in New York, with the easy-to-use apps largely supplanting the city’s iconic yellow taxi cabs. As they have taken over, the companies have been slow to adjust to labor regulations and have balked at providing drivers basic labor protections and benefits.

New York was the first city in the country to establish a minimum wage for the app-based drivers, who are effectively independent contractors able to set their own hours. The city has also implemented a minimum wage for app-based food delivery services such as Uber Eats.

“We’ve waited eight long years to see justice for our members, a workforce that was cheated out of better living conditions, and timely meals and rest and leisure because the earnings that would have provided for that life were stolen by multi-billion dollar corporations,” said Bhairavi Desai, head of the New York Taxi Workers Alliance, which brought the wage theft complaints to the state.

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.”

In California, a court this year ruled that ride-hailing and delivery companies like Uber and Lyft can continue to treat their California drivers as independent contractors, meaning they are not entitled to benefits like paid sick leave and unemployment insurance.

We want to hear from you.

Have a story idea or tip? Send it to the KSL NewsRadio team here.

United States

FILE - Hunter Biden, son of President Joe Biden, speaks during a news conference outside the Capito...

Mariah Maynes

Jury deliberations begin in Hunter Biden trial

The jury has begun deliberating upon whether Hunter Biden is guilty of three federal firearms charges.

3 days ago

A child and two adults load things into a white truck....

Mariah Maynes

Today is Secure Your Load Day. So, what does that mean?

Secure Your Load Day is June 6. According to the Governors Highway Safety Association, it aims to raise awareness of the dangers unsecured loads.

7 days ago

hispanic businesses immigrants growth...

Don Brinkerhoff

Why there’s financial hope for Gen Z

We're living in financial stressful times, Gen Z has reason to be hopeful about their financial future.

13 days ago

donald trump...

Simone Seikaly

Utah responses to Trump guilty verdict

Reaction to the Trump verdict in Utah ranged from making a mockery of the U.S. justice system to reaffirming that nobody is above the rule of law.

13 days ago

Adderall, used to treat ADHD shown - adhd diagnosis in children up...

Josuee Sanchez and Sam Herrera

Nearly 1 million more children had an ADHD diagnosis in 2022 than in 2016

A CDC study found that 11.4% of children between the ages of 3 and 17 had an ADHD diagnosis based on parent reports in 2022.

15 days ago

Former Nissan President and CEO Carlos Ghosn talks to the news media about the new 2005 Frontier pi...

Mariah Maynes

Do-not-drive warnings issued for older Nissan cars with Takata airbag inflators

Nissan has issued a 'do not drive' warning for certain older cars that contain Takata airbag inflators.

15 days ago

Sponsored Articles

Underwater shot of the fisherman holding the fish...

Bear Lake Convention and Visitors Bureau

Your Bear Lake fishing guide

Bear Lake offers year-round fishing opportunities. By preparing ahead of time, you might go home with a big catch!

A group of people cut a purple ribbon...

Comcast

Comcast announces major fiber network expansion in Utah

Comcast's commitment to delivering extensive coverage signifies a monumental leap toward a digitally empowered future for Utahns.

a doctor putting her hand on the chest of her patient...

Intermountain Health

Intermountain nurse-midwives launch new gynecology access clinic

An access clinic launched by Intermountain nurse-midwives provides women with comprehensive gynecology care.

Young couple hugging while a realtor in a suit hands them keys in a new home...

Utah Association of Realtors

Buying a home this spring? Avoid these 5 costly pitfalls

By avoiding these pitfalls when buying a home this spring, you can ensure your investment will be long-lasting and secure.

a person dressed up as a nordic viking in a dragon boat resembling the bear lake monster...

Bear Lake Convention and Visitors Bureau

The Legend of the Bear Lake Monster

The Bear Lake monster has captivated people in the region for centuries, with tales that range from the believable to the bizarre.

...

Live Nation Concerts

All the artists coming to Utah First Credit Union Amphitheatre (formerly USANA Amp) this summer

Summer concerts are more than just entertainment; they’re a celebration of life, love, and connection.

Uber and Lyft to pay $328 million to settle dispute over taxes and fees paid by New York drivers