Lyft and Uber required to pay back 328 million dollars

According to the Attorney General of New York, Uber and Lyft have unlawfully deducted fees from drivers for years.

11/3/2023, 11:00 AM
Eulerpool News Nov 3, 2023, 11:00 AM

New York Attorney General Letitia James makes serious accusations against ride-hailing services Uber and Lyft. Over several years, they allegedly systematically defrauded their drivers of fees in New York. Ultimately, both companies settled with the Attorney General's Office and will pay back a total of 338 million US dollars (311 million euros) to their drivers. This is part of a settlement meant to ensure that the drivers ultimately receive what they are legally entitled to.

Moreover, in the course of comparisons, the proceedings against the two ride service providers have been discontinued. The major portion of the payments, namely 290 million dollars, is covered by Uber, while Lyft contributes 38 million dollars. Between 2014 and 2017, Uber is alleged to have unlawfully deducted taxes and insurance fees from the drivers, which should have been borne by the passengers. Lyft is also accused of having acted similarly.

Despite the agreement, both companies emphasize that they do not admit to any fault. In order to improve drivers' working conditions, Uber and Lyft also commit to a minimum wage of $26 per hour outside New York City. Additionally, a system for paid sick days will be introduced, in which every 30 hours worked earns the right to one hour of paid sick leave. However, the maximum limit for this offer is capped at 56 hours per year.

Uber responded positively to the settlement, without however addressing the allegations and reimbursements. The settlement is seen as a balance between responsibility and innovation, addressing the needs of the hardworking drivers in New York. However, the debate about working conditions and payment of mobility service providers in the so-called Gig-Economy is not new and is constantly being discussed.

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