Uber, Lyft Agree to Back Pay $328 Million to New York Drivers Following Probe

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(The Hill) — Ride-haling companies Uber and Lyft have agreed to pay back $328 million to over 100,000 New York drivers following a multi-year investigation, officials announced Thursday.

New York Attorney General Letitia James (D) confirmed two “landmark” settlements on Thursday, where Uber will pay $290 million and Lyft will pay $38 million for “stealing earnings from drivers.” James said the two settlements mark the largest wage settlement ever to be won by her office.

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She explained that the probe found Uber, between 2014 to 2017, deducted sales taxes and Black Car Fund fees from drivers’ payments instead of charging the passengers. The ride-share company “misrepresented the deductions” in the company’s terms of service and said the company would only deduct its commission from the drivers’ fare, James said.

Uber also told drivers they were “entitled to charge [the passenger] for any tolls, taxes or fees incurred.” The Uber Driver app, however, did not have a method for them to do so, the attorney general added.

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