New York Attorney General Encourages Rideshare Drivers to Claim Settlement Funds
Landmark Settlement Secures $328 Million for Underpaid Drivers
New York Attorney General Letitia James is urging rideshare drivers who believe they were underpaid by Uber and Lyft to file claims on or before January 31, 2025, to receive the funds they are due under settlements reached by the Office of the Attorney General (OAG).
What’s at Stake?
In November, James secured $328 million in back payments for drivers after an OAG investigation found that Uber and Lyft withheld funds from drivers and failed to provide valuable benefits. The settlement also instituted a "minimum earnings level" for drivers, paid sick leave, proper hiring and earnings notifications, and other improvements to drivers’ working conditions.
Eligibility and Filing Claims
New Yorkers who drove for Uber between 2014 and 2017 or for Lyft between 2015 and 2017 may be eligible to receive money from the settlement funds, which are being distributed in full to current and former drivers. Drivers who believe they may be eligible and have not yet filed a claim, or who previously filed a claim but did not receive a response, are encouraged to file a claim online as soon as possible.
How the Settlement Was Reached
From 2014 to 2017, Uber deducted sales taxes and Black Car Fund fees from drivers’ payments when passengers should have paid those taxes and fees. 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 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.
Key Improvements for Drivers
The settlement also requires Uber and Lyft to:
- Institute an "earnings floor," guaranteeing drivers across the state are paid a minimum rate from dispatch to completion of the ride
- Provide paid sick leave, earning one hour of sick pay for every 30 hours worked, up to a maximum of 56 hours per year
- Notify drivers of the amount paid by the rider after each ride
- Offer in-app chat support for drivers in multiple languages
- Provide drivers with proper hiring notices and earnings statements
- Allow drivers to appeal all deactivations from the Uber and Lyft platforms
What if I Encounter Issues?
Anyone experiencing an issue filing a claim should contact Rust Consulting directly. Drivers with questions about the Uber settlement can contact 1-800-625-2332 or info@UberNYAGSettlement.com, and drivers with questions about the Lyft settlement can contact 1-800-433-5314 or info@LyftNYAGSettlement.com.
Frequently Asked Questions
Q: Who is eligible to receive settlement funds?
A: New Yorkers who drove for Uber between 2014 and 2017 or for Lyft between 2015 and 2017 may be eligible to receive money from the settlement funds.
Q: How do I file a claim?
A: Drivers can file a claim online through the Uber or Lyft settlement portals.
Q: What if I encounter issues filing a claim?
A: Contact Rust Consulting directly for assistance.
Q: What if I have questions about the settlement?
A: Contact the New York Taxi Workers Alliance at (718) 706-9892 or media@nytwa.org.
