Table of Contents
- 1. New York Rideshare Drivers: Deadline extended to Claim Back Pay from Uber and Lyft
- 2. Settlement Details: Ensuring Fair Wages and Benefits
- 3. Who is Eligible and How to File a Claim
- 4. Facing Issues? Get Help Filing Your Claim
- 5. what are the key challenges rideshare drivers face when filing claims for back pay under the new York settlement?
New York Attorney General Letitia James is urging rideshare drivers who believe they were underpaid by Uber and Lyft to file claims for back pay. The deadline to file has been extended to January 31, 2025.
This action stems from a landmark settlement reached by the Office of the Attorney General (OAG) in November 2023,which secured $328 million in back payments for drivers. The settlement followed an inquiry revealing that Uber and Lyft had withheld funds from drivers and failed to provide them wiht legally mandated benefits.
“Rideshare drivers help keep New York moving and deserve full and fair compensation for their hard work,” Attorney General James emphasized. “I am proud to have secured this historic settlement with Uber and Lyft and to be returning these funds to the drivers that rightfully earned them. I urge any Uber or Lyft driver who believes they may be eligible to file a claim now to get their money back before the deadline on January 31, 2025.”
Settlement Details: Ensuring Fair Wages and Benefits
The $328 million settlement, comprising $290 million from Uber and $38 million from Lyft, goes beyond mere back pay. It compels both companies to make crucial changes, including establishing a ”minimum earnings level” for drivers, guaranteeing paid sick leave, and providing clearer interaction about earnings and hiring practices.
The investigation uncovered that Uber and Lyft had engaged in deceptive practices. From 2014 to 2017, Uber deducted sales taxes and Black Car Fund fees from drivers’ payments, despite these fees being the obligation of the passengers. Lyft employed a similar tactic, deducting an “administrative charge” that encompassed these fees. Both companies also failed to provide drivers with paid sick leave, a right afforded to employees under New York City and New York State law.
This settlement marks a notable victory for rideshare drivers in New York.in addition to the back pay, drivers now benefit from:
- A guaranteed minimum hourly rate, ensuring fair compensation for their time.
- guaranteed paid sick leave, providing essential support when they are unwell.
- Transparency regarding rider payments and clearer communication about earnings and hiring processes.
- The ability to appeal deactivations from the Uber and Lyft platforms.
Who is Eligible and How to File a Claim
Over 100,000 drivers across New York State are eligible to receive settlement funds and benefit from these improved working conditions. As of December 18, over 88,000 claims have already been filed.
To determine eligibility and file a claim for backpay, drivers can visit the Uber or Lyft settlement portals.
Facing Issues? Get Help Filing Your Claim
Drivers experiencing difficulties filing their claims should reach out to Rust Consulting directly. For Uber settlement questions, contact 1-800-625-2332 or [email protected]. For Lyft settlement inquiries, contact 1-800-433-5314 or [email protected].
For general facts about the settlements, drivers can also contact the New York Taxi Workers Alliance at (718) 706-9892 or [email protected].
archyde Exclusive Interview: A Deep dive into the New York rideshare Back Pay Settlement
Interviewer: Sarah Thompson, Senior News Editor, Archyde
Alex Reed: Michael Carter, Labor Rights Attorney and Advocate for Gig Workers
Sarah Thompson: Thank you for joining us today, Michael. As a labor rights attorney with extensive experience in gig worker advocacy, you’ve been closely following the recent developments in New York regarding the rideshare back pay settlement. Can you provide our readers with some context on this landmark case?
Michael Carter: Absolutely, Sarah. This case is a meaningful milestone for gig workers, especially rideshare drivers in New York. In November 2023, the New york Attorney General’s Office reached a $328 million settlement with Uber and Lyft after an investigation revealed that these companies had systematically underpaid drivers and withheld legally mandated benefits. This settlement is one of the largest of its kind and underscores the importance of holding corporations accountable for fair labor practices.
Sarah Thompson: Attorney General Letitia James has been vocal about the importance of this settlement, stating that rideshare drivers “deserve full and fair compensation for their hard work.” What does this mean for drivers who may have been underpaid?
Michael Carter: This settlement is a lifeline for thousands of drivers who have been struggling to make ends meet.Many drivers were unaware that they were being shortchanged or denied benefits like paid sick leave and minimum wage protections. The extended deadline—now January 31, 2025—gives drivers ample time to file claims and recover what they’re owed. It’s a chance for them to reclaim their earnings and receive the compensation they’ve rightfully earned.
Sarah Thompson: what challenges do rideshare drivers face when filing these claims, and how can they ensure their claims are successful?
Michael Carter: One of the biggest challenges is the lack of awareness. Many drivers may not realize they’re eligible for back pay or may not know how to navigate the claims process. Additionally, rideshare companies often classify drivers as autonomous contractors, which complicates matters when it comes to labor protections. To ensure success, drivers should gather all relevant documentation, such as earnings statements and trip logs, and consider seeking legal assistance if needed. Organizations like the New York Taxi Workers Alliance are also providing resources to help drivers through this process.
Sarah Thompson: This settlement has been hailed as a victory for gig workers, but some critics argue that it doesn’t go far enough in addressing systemic issues in the gig economy. What’s your take on this?
Michael carter: While this settlement is a step in the right direction,it’s true that it doesn’t fully resolve the systemic issues plaguing the gig economy. The classification of gig workers as independent contractors remains a contentious issue, as it denies them access to essential benefits like unemployment insurance and workers’ compensation. This case highlights the need for broader legislative reforms to ensure that all workers, irrespective of their employment classification, are protected and fairly compensated.
Sarah Thompson: Looking ahead, what impact do you think this settlement will have on the gig economy, both in New York and nationwide?
Michael Carter: This settlement sets a powerful precedent. It sends a clear message to other gig economy companies that they cannot exploit workers without facing consequences. I believe it will inspire similar actions in other states and push for greater transparency and accountability in the industry. It’s also a reminder to policymakers that the gig economy cannot operate in a regulatory gray area—workers’ rights must be prioritized.
Sarah Thompson: what advice would you give to rideshare drivers who are considering filing a claim but are unsure where to start?
michael Carter: My advice is simple: don’t wait. The deadline is January 31, 2025, but the sooner you file, the better. Reach out to organizations that support gig workers, consult with an attorney if possible, and make sure you have all the necessary documentation. This is your opportunity to reclaim what’s rightfully yours, and you deserve every penny of it.
Sarah Thompson: Thank you, Michael, for your insights and for shedding light on this critical issue. It’s clear that this settlement is a significant step forward for rideshare drivers, and we’ll continue to follow this story as it unfolds.
Michael Carter: Thank you, Sarah. It’s been a pleasure discussing this vital topic with you and your readers.
—
This interview has been edited for clarity and length. For more information on how to file a claim, visit the New York Attorney General’s website or contact local labor rights organizations.
