Uber and Lyft will pay $328 million in reimbursement to their workers in New York

New York Attorney General Letitia James reported that Uber and Lyft will have to reimburse their workers at least $328 million. The company "cheated their drivers out of years of pay and benefits."

"We found that Uber and Lyft took money out of their drivers' paychecks and prevented them from receiving valuable benefits they were entitled to. They even failed to give their drivers paid sick leave as required by law," wrote Attorney General James on her X account (formerly Twitter).

Likewise, James explained that, in addition to the disbursement of $328 million, the companies will ensure that drivers earn a minimum wage, a first for thousands of drivers outside of New York City. They will also have to provide them with guaranteed paid sick leave and improve overall working conditions for its drivers.

"Our landmark victory is delivering the money and benefits that these workers have long deserved," James said.

"Uber misrepresented the deductions made to drivers' pay"

James' office released a statement detailing that "from 2014 to 2017, Uber deducted sales taxes and Black Car Fund fees from drivers’ payments when those taxes and fees should have been paid by passengers. Uber misrepresented the deductions made to drivers’ pay in their terms of service, telling drivers that Uber would only deduct its commission from the drivers’ fare and that drivers were entitled to charge [the passenger] for any tolls, taxes or fees incurred, though no method to do this was ever provided via the Uber Driver app."

"More than 100,000 drivers throughout New York stand to receive settlement funds and the benefits afforded to them under these historic settlements. As a result, these agreements will have a major impact on the economic lives of rideshare drivers, who are predominantly immigrants and often the main source of income for their families. Surveys have shown that in New York City, nine out of ten drivers are immigrants, two-thirds work full-time as drivers, and more than half are the primary breadwinners in their households," James highlighted.