Rideshare drivers in New York have been complaining about the unfair wages they get after a long and grueling day of driving. The good news is that they are finally getting the pay they deserve as $328 million will be paid to settle backpays.
Rideshare Companies Choose to Settle
State Attorney General Letitia James' investigation has led to a win for the Uber and Lyft drivers in New York. The rideshare companies were accused of collecting fees and taxes from the drivers instead of doing so with customers, as well as failing to pay for sick leave.
It's a step forward for labor workers as it also ensures that drivers will be provided a statewide right to minimum wage. "Ride-share drivers work at all hours of the day and night to take people wherever they need to go," James expressed.
She also stated that for years, "Uber and Lyft systematically cheated their drivers out of hundreds of millions of dollars in pay and benefits while they worked long hours in challenging conditions," as reported by Tech Crunch.
Uber is paying the lion's share of the settlement with $290 million, while Lyft will be paying for $38 million. These will allow both companies to fund the payout claims for the 100,000 drivers who allegedly had their wages stolen. Both former and current ones.
Furthermore, the settlement also gives drivers 56 hours of paid sick leave every year, wherein they would get one hour of sick pay for every 30 hours they worked. Drivers may start using their hours on February 29, 2024.
"The companies are all but formally acknowledging that these drivers are in fact their employees who deserve the employment rights all other workers deserve, says Assistant Professor at Cornell University's School of Industrial & Labor Relations, Andrew Wolf.
Despite the settlement, both Uber and Lyft did not admit to any mistake they had made. In fact, both framed it as a good thing for both. Lyft's Chief Policy Officer Jeremy Bird said that it's "a win for drivers, and one we are proud to have achieved with the New York Attorney General's Office."
Bird also claimed that they look forward to continuing this work "in order to provide New York drivers the independence and full range of benefits available to those in other states, like California and Washington."
Read Also: Amazon Claims Delivery Drivers on Strike Aren't Their Own Employees
$18 Minimum Wage Delivery Workers
Just this September, New York City gained another win for the little guys. A judge's decision led to Uber, DoorDash, and GrubHub having to pay their drivers the minimum wage of $18 an hour, that's not including the tips they will get from customers.
In addition to that, the company will have to increase their wage every year as well. This is a significant increase compared to the previous average rate delivery workers get, which was $7 to $11 an hour, as reported by Engadget.
With this and the recent settlement from rideshare giants, New York is becoming a place that fights for the workers and not the companies. It sets a good precedent for other states to put the people's welfare and provide them with what they deserve first.
Related: App-Employed Delivery Workers Will Soon Get $18 per Hour as Minimum Wage in NYC
