Uber Driver Fees Settlement: $290M

This settlement benefits individuals who:

• Used the Uber driver app to provide rides in New York between Nov. 10, 2014, and May 22, 2017
• Had deductions taken from their earnings for New York sales tax and Black Car Fund fees

You will need to provide your Claimant ID and last name on the settlement website.

Uber Technologies, Inc. has agreed to a $290 million settlement following a New York investigation into claims that it unlawfully deducted fees and taxes from driver earnings.

What Happened?

The New York Attorney General’s Office alleged that Uber violated state laws by improperly withholding money from drivers’ wages, specifically for:

1. Sales Tax: Charged on rides but allegedly deducted from drivers’ pay.
2. Black Car Fund Fees: A surcharge meant for workers' compensation that was allegedly deducted from driver earnings.

These deductions reportedly caused drivers to earn less than they were entitled to under New York labor laws.

Uber has denied any wrongdoing but agreed to settle the claims to resolve the matter. A similar settlement was reached with Lyft in 2023 over similar allegations.

Under the terms of the settlement, eligible drivers may receive:

1. Monetary Compensation:

   • Payments will be made on a rolling basis and calculated based on the amount of pay withheld for sales tax and Black Car Fund fees.

2. Tax Implications:

   • All payments from the settlement will be treated as taxable income, and participants will receive an IRS 1099 form.

3. Offsets for Judgments or Child Support:

   • If you owe money under applicable judgments or child-support enforcement orders, the New York agency will notify you before applying your payment to those balances.

To receive your share of the $290 million settlement, eligible drivers must file a claim by providing their Claimant ID and last name through the settlement website. Payments will vary based on the total fees deducted and individual circumstances.