Ride-hailing platforms Uber and Lyft have agreed to pay a combined sum of $328 million to its drivers. These companies have decided to pay this amount to settle allegations about unlawfully withholding wages from drivers and failing to provide mandatory paid sick leave in New York state. According to a report by CNBC, Attorney General Letitia James’ officehas released a press release claiming that this was the largest wage-theft settlement that it has ever won.The report also noted that in this settlement Uber will pay $290 million and Lyft will pay $38 million.
Uber’s settlement represents more than 3% of the $9.23 billion revenue it generated in the last quarter. Meanwhile, Lyft’s settlement comes to nearly 4% of the company’s $1.02 billion revenue it reported in the previous quarter.
How will this money help Uber, Lyft drivers
As per the release, the money will go to drivers who have been affected by the companies’ alleged practices. More than 100,000 drivers in New York could be eligible to receive the funds and benefits secured under the agreements, the report noted. Eligible drivers will be notified by mail, email or text about how to file a claim.
New benefits for drivers under the agreement
Under the latest agreement, Uber and Lyft have to offer drivers a guaranteed earning minimum of $26 per hour outside of New York City. This amount will be adjusted each year for inflation. According to a press release from the AG’s office, under this agreement, the minimum rate would apply from “dispatch to completion of the ride”. Drivers in New York City already receive guaranteed minimum earnings under local regulations, the report adds.
Uber’s settlement represents more than 3% of the $9.23 billion revenue it generated in the last quarter. Meanwhile, Lyft’s settlement comes to nearly 4% of the company’s $1.02 billion revenue it reported in the previous quarter.
How will this money help Uber, Lyft drivers
As per the release, the money will go to drivers who have been affected by the companies’ alleged practices. More than 100,000 drivers in New York could be eligible to receive the funds and benefits secured under the agreements, the report noted. Eligible drivers will be notified by mail, email or text about how to file a claim.
New benefits for drivers under the agreement
Under the latest agreement, Uber and Lyft have to offer drivers a guaranteed earning minimum of $26 per hour outside of New York City. This amount will be adjusted each year for inflation. According to a press release from the AG’s office, under this agreement, the minimum rate would apply from “dispatch to completion of the ride”. Drivers in New York City already receive guaranteed minimum earnings under local regulations, the report adds.
The agreement will also ensure drivers get paid sick leave in New York state. They’ll be able to earn one hour of sick pay up to 56 hours per year for every 30 hours worked. Both platforms will also roll out updates that will allow drivers to request sick leave through the apps.
Uber and Lyft have also agreed to offer drivers compensation breakdowns. The companies will also have to notify drivers how much a rider paid for each ride and provide an in-app chat tool for them to discuss earnings and work conditions. Uber and Lyft also need to allow drivers to appeal deactivation from their platforms.
