Lyft New York City Driver Settlement: $38M

Lyft drivers who provided rides in New York City between October 11, 2015, and July 31, 2017, and had deductions for New York sales tax and Black Car Fund fees are eligible for a payment.

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New York Attorney General Letitia James launched a multi-year investigation into ride-sharing companies, including Lyft, alleging that these companies had engaged in practices that deprived drivers of their rightful earnings. The investigation focused on claims that Lyft improperly deducted taxes and fees from driver pay, rather than collecting them from passengers as required by law.

The Attorney General's office asserted that Lyft's actions violated New York labor law and deprived drivers of essential benefits. The lawsuit alleged that these practices resulted in lower earnings for drivers and hindered their ability to access necessary protections and benefits.

Lyft, while denying any wrongdoing, agreed to a $38 million settlement to resolve the allegations and avoid further legal action. The settlement aims to compensate affected drivers and implement new labor protections for current and future drivers.

Eligible drivers can receive a payment based on the number of rides they completed during the settlement period.

Additionally, all Lyft drivers in New York will receive new benefits, including guaranteed paid sick leave, minimum wage guarantees for drivers outside New York City, improved earnings information, and other workplace protections.