Thousands of rideshare drivers in New York may be eligible to receive significant back pay from Uber and Lyft as part of a settlement announced by the state attorney general on Thursday.New York Attorney General Letitia James announced two settlement funds totaling $328 million with rideshare companies Uber and Lyft for allegedly "cheating drivers out of hundreds of millions of dollars" in earnings, according to a statement from her office.
As part of the settlements, Uber will pay some $290 million and Lyft will pay some $38 million into two separate funds that will be distributed as back pay to current and former drivers. Also as part of the agreement, the rideshare companies will institute improvements in drivers' working conditions, including a minimum driver "earnings floor," the attorney general's office said.
"These drivers overwhelmingly come from immigrant communities and rely on these jobs to provide for their families," James added. "This settlement will ensure they finally get what they have rightfully earned and are owed under the law."
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