The New York Attorney General, Letitia James, has reached a $38 million settlement with Lyft, resolving allegations that the ride-hailing company unlawfully deducted sales taxes and fees from drivers’ pay. The settlement marks a significant win for New York Lyft drivers who provided rides between October 11, 2015, and July 31, 2017, and had improper deductions made from their earnings.
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Key Allegations Against Lyft
The legal action stemmed from claims that:
- Lyft deducted New York sales tax and Black Car Fund fees from driver earnings instead of charging these costs to passengers.
- The deductions allegedly reduced driver pay unfairly and prevented drivers from accessing benefits they were entitled to under New York law.
Although Lyft did not admit any wrongdoing, the company has agreed to settle the claims to the tune of $38 million.
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Who is Eligible for the Settlement?
The settlement applies to:
- Lyft drivers who used the Lyft Driver app to provide rides in New York between October 11, 2015, and July 31, 2017.
- Drivers who experienced deductions for sales tax or Black Car Fund fees.
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Settlement Benefits for Drivers
1. Financial Compensation
- Eligible drivers can receive a payment based on the number of rides they completed during the settlement period.
- Lyft will provide ride data to the claims administrator to ensure accurate payouts.
2. Prospective Driver Benefits
The settlement also introduces future benefits for current drivers, including:
- Guaranteed Paid Sick Leave: Drivers now have access to paid sick days.
- Minimum Wage Guarantee: A minimum wage of $26 per hour for rides provided outside New York City.
- Training Payment: Drivers will receive pay for up to one hour of training.
- Additional Support: Other measures to enhance driver well-being and compliance with labor laws.
How to File a Claim
Eligible drivers must file a valid claim form to receive payment.
- Claim Form Deadline: January 31, 2025
- How to File: Visit the official settlement website to complete and submit your claim.
Note: Filing a fraudulent claim under penalty of perjury may result in legal consequences.
Case Details
- Case Name: In the Matter of the Investigation of Letitia James, Attorney General of the State of New York of Lyft Inc., AOD No. 23-041
- Final Hearing: November 30, 2023
- Claims Administrator Contact:
- Email: [email protected]
- Phone: 800-433-5314
What This Means for Lyft Drivers
This settlement underscores the importance of fair labor practices and ensures drivers are compensated for past deductions while benefiting from improved conditions going forward. Drivers are encouraged to submit their claims by the deadline to secure their share of the settlement.
For more information, visit the official settlement website.
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