Uber, Lyft Settle for $328M over Wage Theft Allegations in New York, Agree to Future Worker Benefits

Settlement reached after investigation into improper tax and fee deductions from drivers' earnings, ensures statewide hourly wage and paid sick benefits for drivers while failing to change gig worker status.

Uber and Lyft have settled for $328 million in response to wage theft allegations in New York following an investigation launched by state attorney general Letitia James into improper fee and tax deductions from driver earnings.
In addition to the monetary settlement, Uber and Lyft have agreed to provide statewide minimum hourly wage and paid sick benefits to drivers, without changing gig worker status.
The settlement funds, distributed among approximately 100,000 eligible current and former drivers in New York, entail Uber paying $290 million and Lyft $38 million.
As per the settlement, Uber will start contributing to New York's unemployment insurance program as part of a separate agreement with the state's labor department. This marks Uber settling both past and future unemployment insurance liability for the first time in any US state.
Despite these financial commitments and future agreements, both Uber and Lyft maintain their denial of any wrongdoings and express positivity towards the settlement, viewing it as an advancement and model for other states.