Wrong deductions "withheld hard-earned pay from drivers," NY AG says:
Uber and Lyft have agreed to pay $328 million after "cheating drivers out of hundreds of millions of dollars," New York Attorney General Letitia James' office said today. "Uber will pay $290 million and Lyft will pay $38 million into two separate settlement funds which will be entirely distributed to current and former drivers," the AG's office said.
The ride-hailing companies also agreed to provide sick leave and better pay to drivers going forward. "The settlements resolve multi-year investigations into Uber and Lyft, which found that the companies' policies withheld hard-earned pay from drivers and prevented them from receiving valuable benefits available under New York labor laws," the announcement said, calling it the largest back-pay settlement in the NY AG office's history.
The AG's office estimates that over 100,000 drivers, most of whom are immigrants, will be eligible for payments. Notices will be sent to people who are eligible for payments, and links to claims forms are available here.
The AG's announcement has quotes from several New York Taxi Workers Alliance members, including Malang Gassama, a former driver for Uber and Lyft. "I've calculated that Uber and Lyft took at least $25,000 from my pay that they shouldn't have in the form of sales tax and the Black Car Fund surcharge," Gassama is quoted as saying.
The Uber settlement fund is for people who "drove for Uber between November 10, 2014, and May 22, 2017, and had deductions taken for New York sales tax and Black Car Fund fees." The Lyft fund is for people who drove for Lyft between October 11, 2015, and July 31, 2017, and had the same kinds of deductions.
James' office described the companies' violations as follows:
From 2014 to 2017, Uber deducted sales taxes and Black Car Fund fees from drivers' payments when those taxes and fees should have been paid by passengers. Uber misrepresented the deductions made to drivers' pay in their terms of service, telling drivers that Uber would only deduct its commission from the drivers' fare, and that drivers were "entitled to charge [the passenger] for any tolls, taxes or fees incurred," though no method to do this was ever provided via the Uber Driver app. Lyft employed a similar method to shortchange drivers from 2015 to 2017, deducting a 11.4 percent "administrative charge" from drivers' payments in New York equal to the amount of sales tax and Black Car Fund fees that should have been paid by riders. Uber and Lyft also failed to provide drivers with paid sick leave available to employees under New York City and New York state law.
Going forward, Uber and Lyft drivers in New York State will get paid sick leave. The companies must also provide hiring notices that "accurately explain the earnings to which drivers are entitled for their work" and earnings statements that "accurately detail the compensation earned for each pay period," the announcement said.
Uber and Lyft must "notify drivers after each ride of the amount paid by the rider," provide the right to "appeal all deactivations from the Uber and Lyft platforms," and offer in-app chat support in multiple languages.
In parts of the state outside New York City, drivers will receive at least $26 per hour, adjusted annually for inflation. Drivers in New York City will continue to receive minimum per-trip pay under rules set by the city's Taxi & Limousine Commission.
[...] "New York is the first state in the country with which Uber has agreed to a settlement that addresses both past and future unemployment insurance liability," Gov. Kathy Hochul's office said.
Lyft said the settlement "prioritizes the benefits drivers want without sacrificing the independence and flexibility they need." It "builds on the benefits and protections that drivers already enjoy through the state's Black Car Fund, which provides accident disability and workers' compensation, dental and vision coverage, telemedicine services, and more," Lyft said.
(Score: 3, Interesting) by bzipitidoo on Sunday November 05 2023, @03:00PM (2 children)
Many Americans think nothing of long drives, though I believe that's finally changing. Crazy long daily commutes made even longer by rush hour traffic are or were routinely discounted. That's always been on the employee. Put in what amounts to a 10 hour workday for 8 hours of pay, because 2 of those hours were for what should have been half that time if not for the heavy rush hour traffic, the drive to and from work. Businesses like these tap into that misperception and excessive love of cars.
Friend of mine was scammed hugely that way. Was doing medical work, but somehow all the work was house calls, patient visits to the office never happened, and the employer did not pay in any way for the time and expense of traveling to and from these homes, only for the hour spent at the home. I protested repeatedly that he was being scammed, should be paid at least for the time spent traveling, but he wouldn't listen. We later learned that the employer was getting paid extra, and passing on zero of that to the employee! Still wouldn't do anything to get redress, just shrugged it off.
(Score: 2) by Opportunist on Sunday November 05 2023, @03:04PM
If I have to travel, my clock starts ticking the moment I start the car. And it stops ticking the moment I stop the car back at home.
You agree to this or you can somehow else compensate me.
Welcome to the reality of today's work situation.
(Score: 1) by khallow on Monday November 06 2023, @03:42AM
I side with businesses on this one. If you choose to travel two hours a day, it's on you, not the business. They cover this with normal compensation - your wages and such are expected to cover your expenses and then some.
If the employee refuses to do anything about it, then it's on them. This incidentally would be a common problem in a world with heavy employee protections and no jobs. The employee would routinely conspire with the employer to break the law.
(Score: 2) by Opportunist on Sunday November 05 2023, @03:02PM (3 children)
Some drivers will not claim their share. Some drivers will have died by now. What happens to that money these people would be entitled to, I ask?
(Score: 4, Insightful) by Frosty Piss on Sunday November 05 2023, @04:42PM
Most of the money goes to the lawyers, as is the case in most class action suits.
(Score: 2) by mcgrew on Sunday November 05 2023, @08:28PM
Their survivors.
Impeach Donald Saruman and his sidekick Elon Sauron
(Score: 0) by Anonymous Coward on Monday November 06 2023, @08:36AM
Theoretically the share belongs to: https://en.wikipedia.org/wiki/Estate_(law) [wikipedia.org]
But if it's not claimed I bet the government will eventually take it.