Uber and Lyft will pay a combined $328 million to settle claims by New York's attorney general that the ride-sharing companies systematically cheated drivers out of pay and benefits.
James’ probe addressed claims that Uber and Lyft improperly collected some taxes and fees from New York drivers rather than passengers.
The settlement also ends James’ probe into Uber’s and Lyft’s classification of drivers as independent contractors instead of employees, a practice both companies regularly defend in lawsuits, when dealing with legislators, and at the ballot box.
Uber and Lyft have long defended against claims nationwide that they shortchange drivers, many of whom are immigrants, out of pay and benefits, including by refusing to classify them as employees.
James accused Uber and Lyft of improperly deducting sales taxes and fees for a workers compensation fund from drivers’ payments, though passengers should have paid those amounts.
James said both companies also denied drivers sick leave that state and New York City employees are legally entitled to receive.
Under the settlements, drivers outside New York City will receive a minimum $26 per hour during rides and for sick leave, adjusted annually for inflation.
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James’ probe addressed claims that Uber and Lyft improperly collected some taxes and fees from New York drivers rather than passengers.
The settlement also ends James’ probe into Uber’s and Lyft’s classification of drivers as independent contractors instead of employees, a practice both companies regularly defend in lawsuits, when dealing with legislators, and at the ballot box.
Uber and Lyft have long defended against claims nationwide that they shortchange drivers, many of whom are immigrants, out of pay and benefits, including by refusing to classify them as employees.
James accused Uber and Lyft of improperly deducting sales taxes and fees for a workers compensation fund from drivers’ payments, though passengers should have paid those amounts.
James said both companies also denied drivers sick leave that state and New York City employees are legally entitled to receive.
Under the settlements, drivers outside New York City will receive a minimum $26 per hour during rides and for sick leave, adjusted annually for inflation.
The original article contains 580 words, the summary contains 161 words. Saved 72%. I’m a bot and I’m open source!