Uber, Lyft to Pay $328 Million in Back Pay For NY drivers
- Firms agree to $328m back pay, paid sick leave, minimum wage
- Agreement puts worker classification issue in NY to rest: Uber
Uber Technologies Inc. and Lyft Inc. stickers displayed on a vehicle in New York, US.
Photographer: Jeenah Moon/BloombergRide-hailing companies Uber Technologies Inc. and Lyft Inc. agreed to pay New York drivers a total of $328 million in back pay and carry out a series of labor reforms to resolve state investigations into their employment practices.
The companies will start to offer paid sick leave, put in place a minimum “earnings floor” and vowed to improve hiring and earnings notices, among other changes, New York Attorney General Letitia James said Thursday in a statement. Under separate settlement agreements to resolve probes into improper tax charges on drivers, Uber will pay $290 million and Lyft will pay $38 million to current and former New York drivers, James said.