In a significant development in the gig economy, Uber and Lyft have agreed to pay $338 million as part of separate settlements collectively referred to as “landmark” by investor circles. This agreement was catalyzed by allegations that both companies improperly deducted taxes and fees from drivers’ payments. Instead of shouldering these costs, they transferred them onto their drivers, which was deemed unlawful in the New York State attorney general’s office proceedings.
In response to the settlements, attorneys representing the drivers expressed relief and satisfaction. The combined payment marks a considerable victory for these employed drivers who had long fought for their rights in this unique labor economy.
Zubin Soleimany, a representative for an alliance of approximately 20,000 drivers, declared it a “huge victory for drivers.” It’s worth noting that roughly 70% of this group drive for gig economy apps like Uber and Lyft, attesting to the significant impact of these settlements for drivers employed by these companies.
To delve into the deep details of these settlements, you may refer to this detailed analysis by the New York Law Journal.