New York Times: Uber and Lyft Agree to $328 Million Payout for New York Drivers

Uber and Lyft have agreed to pay New York drivers a $328 million settlement after the state attorney general investigated a wage-theft complaint charging that the companies collected certain taxes and fees from drivers rather than passengers.

Uber will pay $290 million and Lyft will provide $38 million into two funds that will pay out claims that roughly 100,000 current and former drivers in New York State are eligible to file. The ride-hailing companies did not admit fault in the settlement, which was made public on Thursday.

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Labor experts on Thursday said that the settlements nudge drivers for ride-hailing companies closer to the rights and benefits owed to workers in more established industries, but many limitations remain.

Drivers in New York State and New York City are classified as independent contractors. The settlements announced on Thursday did not alter the designation, which is central to the debate over the treatment of gig workers.

“It’s not a full victory because there are so many other ways that they are still shirking their obligations to their workers,” said Laura Padin, who specializes in workplace standards at the National Employment Law Project.

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Read the full article at nytimes.com.