Uber, Lyft drivers can apply for $328 million in back payments through Jan. 31
Uber and Lyft drivers have until Jan. 31 to file for $328 million in back payments. Credit: Jeff Bachner
Uber and Lyft drivers have until Jan. 31 to apply for $328 million in back payments secured by state Attorney General Letitia James as part of two 2023 settlements with the rideshare companies.
James extended the deadline by a month to give drivers more time to apply for the funds, which cover Uber drivers who completed trips from Nov. 10, 2014, to May, 22, 2017. Lyft drivers must have provided rides between Oct. 11, 2015, and July 31, 2017.
Uber agreed to pay $290 million and Lyft agreed to pay $38 million in November 2023 toward two settlement funds for allegedly making illegal deductions from payments to drivers during those time frames.
An investigation by the attorney general’s office alleged Uber deducted sales tax and Black Car Fund fees from its payments to drivers from 2014 to 2017 rather than pass on those costs to customers. It also included misleading language in its terms of service that those fees would be charged as part of the ride fare, according to the attorney general’s office.
Lyft allegedly used a similar tactic, deducting an 11.4% administrative charge from its payments to drivers, which the attorney general’s office said equaled the combined amount for sales tax and Black Car Fund fees.
“I am proud to have secured this landmark settlement with Uber and Lyft and to be returning these funds to the drivers that rightfully earned them,” James said in a statement on Tuesday. “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.”
The Black Car Fund is a Long Island City-based nonprofit workers’ compensation insurance provider for black car and limousine drivers, financed through passenger fees.
The Independent Drivers Guild, a national advocacy group with a New York chapter based in Long Island City, said it has reached out to rideshare drivers through email, social media and text messages to urge them to apply.
IDG, which represents 300,000 drivers nationally and 80,000 in New York City, wants all drivers eligible for payments to apply, Anwaar Malik, a Shirley resident and organizer for IDG, said in an email. Malik formerly was an Uber driver, starting in 2016.
“We're pleased that the Attorney General's office has extended the deadline to give more drivers an opportunity to submit their claims,” Malik said. “However, we remain concerned about ensuring no drivers are left behind.”
As part of the settlement, Uber and Lyft agreed to set an earnings floor, with drivers outside New York City, such as those on Long Island, earning $26 an hour, with annual increases tied to inflation. The minimum rose to $26.78 in June and another inflation-related increase will take effect in March. Those rates apply to drivers not covered by the New York City Taxi & Limousine Commission’s minimum pay rules, according to the attorney general.
The companies also agreed to offer guaranteed paid sick leave, create hiring notices that make clear to new drivers how they are paid and notify drivers of the amount paid by the rider after each trip.
Uber and Lyft did not immediately respond to requests for comment.
The attorney general’s office estimated that about 100,000 drivers statewide would qualify to receive settlement funds. If that number of drivers apply, the average payout would be $3,280.
The attorney general urged drivers with issues filing their claims to contact Rust Consulting, the settlement administrator.
Uber and Lyft drivers have until Jan. 31 to apply for $328 million in back payments secured by state Attorney General Letitia James as part of two 2023 settlements with the rideshare companies.
James extended the deadline by a month to give drivers more time to apply for the funds, which cover Uber drivers who completed trips from Nov. 10, 2014, to May, 22, 2017. Lyft drivers must have provided rides between Oct. 11, 2015, and July 31, 2017.
Uber agreed to pay $290 million and Lyft agreed to pay $38 million in November 2023 toward two settlement funds for allegedly making illegal deductions from payments to drivers during those time frames.
An investigation by the attorney general’s office alleged Uber deducted sales tax and Black Car Fund fees from its payments to drivers from 2014 to 2017 rather than pass on those costs to customers. It also included misleading language in its terms of service that those fees would be charged as part of the ride fare, according to the attorney general’s office.
Lyft allegedly used a similar tactic, deducting an 11.4% administrative charge from its payments to drivers, which the attorney general’s office said equaled the combined amount for sales tax and Black Car Fund fees.
“I am proud to have secured this landmark settlement with Uber and Lyft and to be returning these funds to the drivers that rightfully earned them,” James said in a statement on Tuesday. “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.”
The Black Car Fund is a Long Island City-based nonprofit workers’ compensation insurance provider for black car and limousine drivers, financed through passenger fees.
The Independent Drivers Guild, a national advocacy group with a New York chapter based in Long Island City, said it has reached out to rideshare drivers through email, social media and text messages to urge them to apply.
IDG, which represents 300,000 drivers nationally and 80,000 in New York City, wants all drivers eligible for payments to apply, Anwaar Malik, a Shirley resident and organizer for IDG, said in an email. Malik formerly was an Uber driver, starting in 2016.
“We're pleased that the Attorney General's office has extended the deadline to give more drivers an opportunity to submit their claims,” Malik said. “However, we remain concerned about ensuring no drivers are left behind.”
As part of the settlement, Uber and Lyft agreed to set an earnings floor, with drivers outside New York City, such as those on Long Island, earning $26 an hour, with annual increases tied to inflation. The minimum rose to $26.78 in June and another inflation-related increase will take effect in March. Those rates apply to drivers not covered by the New York City Taxi & Limousine Commission’s minimum pay rules, according to the attorney general.
The companies also agreed to offer guaranteed paid sick leave, create hiring notices that make clear to new drivers how they are paid and notify drivers of the amount paid by the rider after each trip.
Uber and Lyft did not immediately respond to requests for comment.
The attorney general’s office estimated that about 100,000 drivers statewide would qualify to receive settlement funds. If that number of drivers apply, the average payout would be $3,280.
The attorney general urged drivers with issues filing their claims to contact Rust Consulting, the settlement administrator.
Drivers with questions about the Uber settlement can contact 1-800-625-2332 or info@UberNYAGSettlement.com, while those with questions on the Lyft settlement should contact 1-800-433-5314 or info@LyftNYAGSettlement.com.
Jonathan LaMantia covers residential real estate and other business news on Long Island. He previously covered the business of health care for Crain's New York Business.
Thomas Valve's mother demands more money ... LI child therapist in court ... Fire at daycare center ... Winter movie preview
Thomas Valve's mother demands more money ... LI child therapist in court ... Fire at daycare center ... Winter movie preview
