CAPITAL REGION, N.Y. (NEWS10) — Uber and Lyft will have to pay more than $300 million to settle a lawsuit with New York State, after an investigation found the companies withheld money from drivers.
Additionally, as a result of Attorney General Letitia James’ investigation, drivers will now have guaranteed paid sick leave. Uber and Lyft also agreed to drivers being paid a minimum rate from dispatch to completion of the ride.
Job classification for drivers will not change.
“They are still going to be considered independent contractors,” said Ryan McCall, Senior Associate at Tully Rinckey PLLC. “With that being said, the Attorney General did notice a lot of inconsistencies.”
One of the accusations in the settlement says ride share companies were deducting sales tax and other fees from drivers’ payments, instead of charging them to the passengers.
That’s where the settlement money comes in.
If you are an Uber or Lyft driver who falls into one of the above categories, you can file a claim online.