Rideshare companies Uber & Lyft have agreed to a $328 million settlement with the state of New York, after the companies were accused of cheating “their drivers out of hundreds of millions of dollars in pay and benefits while they worked long hours in challenging conditions,” says New York State Attorney General Letitia James.
Uber will pay $290 million of the settlement agreement, while Lyft pays the other $38 million. The money will go towards drivers that were affected by the alleged practices of the companies. Both companies also agreed to changing pay and benefits within the state.
Uber and Lyft drivers outside of New York City but still within the state will earn a guaranteed amount of $26 per hour. Drivers in the state will also get paid sick leave, and both companies will give drivers compensation breakdowns.
Shannon Liss-Riordan, a lawyer who represents multiple rideshare drivers in court cases involving the companies, said that the “settlement could help advance other states' efforts to reach a recovery for drivers whose rights have been violated."
More than 100,000 New York rideshare drivers could be eligible for compensation from the settlement agreement. The amount accounts for less than five percent of each company's revenue in the previous quarter.