BUFFALO, N.Y. (WKBW) — On Thursday New York Attorney General Letitia James' Office announced two settlements totaling $328 million with rideshare companies Uber and Lyft. It's expected to impact more than 100,000 drivers in New York.
"It's unprecedented," said Bhairavi Desai, Executive Director of New York's Taxi Worker Alliance, which first brought this issue to the AG's office in 2015.
The settlement states from 2014 to 2017 Uber charged taxes and fees to drivers instead of passengers, and Lyft had a similar method from 2015 to 2017.
"This is significant money that was stolen from the drivers," said Desai. "We've seen members owed as much as $40,000, 20,000, $10,000, $6,000."
Desaid said a letter will be mailed to eligible drivers with information to be compensated. She said Uber and Lyft drivers that don't feel they're being compensated fairly can still put in a complaint with the New York Taxi Alliance.Desai said NYTA is also working with families of eligible drivers who have since passed away.
The settlement also provides the following for Uber and Lyft drivers:
- A minimum rate of $26 per hour for drivers outside of NYC
- One hour of sick pay for every 30 hours worked
- Improved working conditions
7 News reached out to Uber to check if this will impoact cost for passengers, but have not heard back Uber did release a statementwith improvements.
Lyft's Chief Policy Officer Jeremy Bird said in a statement:
“This is a win for drivers, and one we are proud to have achieved with the New York Attorney General’s Office. New York has long been a leader in providing drivers portable benefits through flexible earning opportunities with its Black Car Fund, and this agreement expands upon that foundation. We look forward to continuing this work in order to provide New York drivers the independence and full range of benefits available to those in other states, like California and Washington."
