James stated the settlements resolve investigations into the businesses improperly charging drivers gross sales taxes and different charges when the prices ought to have been paid by prospects.
Uber pays $290 million and Lyft pays $38 million. The cash shall be distributed to present and former drivers, she stated. The businesses have additionally agreed to offer drivers outdoors of New York Metropolis with paid sick depart and provides drivers outdoors of New York Metropolis a minimal wage of $26 per hour.
For years, Uber and Lyft systemically cheated their drivers out of lots of of thousands and thousands of {dollars} in pay and advantages whereas they labored lengthy hours in difficult circumstances,” James stated in an announcement.
Tony West, chief authorized officer for Uber, stated the settlement helps put to relaxation the classification concern in New York and strikes us ahead with a mannequin that displays the way in which individuals are more and more selecting to work.
Lyft’s chief coverage officer, Jeremy Chook, stated in an announcement, This can be a win for drivers, and one we’re proud to have achieved with the New York Lawyer Generals Workplace.