Lyft and Uber to pay $328 million for withholding money from New York drivers, in one of the largest Wage Theft cases ever

The money will be distributed to cheated drivers who will get back pay along with mandatory paid sick leave and other benefits. Eligible drivers can file a claim to receive the money owed.

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, the attorney general's office said.

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 used a similar method to shortchange drivers from 2015 to 2017, deducting an 11.4% "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.

https://abcnews.go.com/US/uber-lyft-agree-pay-combined-328-million-withholding/story?id=104565542