Uber, Lyft agree to pay $328 million to New York drivers in wage-theft lawsuit

Ride-share giants Uber and Lyft have been stung in a wage-theft lawsuit filed in New York in which they agreed to shell out $328 million in unpaid wages to tens of thousands of past and current New York workers. The companies will also guarantee drivers sick leave and minimum pay, according to the New York Times.

>> Read more trending news

The New York attorney general checked out complaints that the companies withheld money from drivers for certain taxes and fees instead of passengers, ABC News reported.

Uber told the drivers in its terms of service that the company would only deduct its commission from the money the drivers earned, and that the drivers were responsible for charging the passenger for “tolls, taxes, or fees incurred.” But that was impossible because there was never any way to issue those charges through the Uber Driver app, according to ABC News.

The companies “misrepresented the deductions made to drivers’ pay in their terms of service,” ABC News reported. New York Attorney General Letitia James called the wage-theft settlement the largest her office ever secured, according to the news network.

Uber will pay $290 million and Lyft $38 million into two separate funds that will pay claims that more than 100,000 current and former drivers are eligible to file, the Times reported.

Drivers will earn one hour of paid sick leave for every 30 hours worked, up to a maximum of 56 hours per year. Drivers outside New York City will receive a minimum pay of $26 per hour, which will only include the dispatch and completion of each ride, according to the Times.