💰 "Uber Owes Me $25,000", As AG Warns of Scams Related To NY Driver Wage Theft Settlement
NY Attorney General Letitia James warns *ONLY* Rust Consulting is handling claim payouts to NY Uber/Lyft drivers related to wage theft settlement. Payout process begins March 1st
Uber & Lyft agreed to pay $328 million to New York State drivers (including NYC TLC), after NY attorney general (AG) Letitia James investigated a wage theft complaint
Attorney General’s office warned drivers of scams related to widely publicized settlement
Drivers should only be dealing with Rust Consulting, the official settlement administrator, with payout process beginning March 1st
NYC TLC-licensed drivers already have minimum pay protection, but will see other notable benefits including paid sick leave & ability to appeal deactivations
“Uber [owes] me $25,000, Lyft [owes] me about $3,000”
- Malang Gassama, NY Uber & Lyft driver
“I’m going to help my family…And I was going to school but I couldn’t afford to pay it so I’ll go back to school again.”
- Lamin Jadda, NY Uber & Lyft driver
“First thing I will be doing with it, is to pay my daughter’s college tuition…which means a lot.”
- Ibrahima Gory, NY Uber & Lyft driver
Click here for news coverage of event from Spectrum News NY1.
As we covered in early November, more details came out about the historic wage theft settlement reached between New York State and Uber/Lyft.
Quick Background
New York State Attorney General (AG) Letitia James’ office alleged that between 2014 and 2017, Uber (& Lyft from 2015 to 2017) deducted sales taxes and Black Car Fund (BCF) fees from drivers’ earnings when they should have been paid by passengers.
During that time period, we believe the total percent incorrectly deducted would have been 8.875% NYS sales tax + 2.5% Black Car Fund fees = 11.375%! In addition, the AG states between 2015 and 2017, Lyft similarly deducted an 11.4% administrative charge from drivers’ payments that was equal to the amount of sales tax and BCF fees that should have been paid by riders.
The original complaint was brought to the attention of the AG by the New York Taxi Workers Alliance (NYTWA). NYTWA members were quoted in the AG’s official press release in November.
“When we realized Uber was taking this money from all of us, we brought it to our union, the New York Taxi Workers Alliance. That’s when we started our fight to win back the millions Uber stole from drivers. Now, with the help of Attorney General Letitia James, we’re finally seeing justice.”
- Ishtiaq Ahmed, NYTWA member and Uber driver
“Attorney General James would like to thank the New York Taxi Workers Alliance for bringing this matter to the office.”
- Official New York State Attorney General Office Statement
Article continues after advertisement
Settlements
There are essentially two significant monetary settlements that apply to all New York State Uber & Lyft drivers, including NYC TLC-licensed drivers
$328 million backpay settlement: Uber’s share is $290 million & Lyft’s share is $38 million. This settlement will be put into two funds that will pay out claims that roughly 100,000 current and former drivers in New York State are eligible to file.
Uber Agreement to Make Unemployment Insurance Contributions: Uber will begin making quarterly payments into the New York State Unemployment Insurance Trust Fund and make a retroactive payment to the UI Trust Fund for payments owed since 2013. Note, Lyft is not mentioned in the official Governor’s office announcement, only Uber.
To be precise, the settlement relates to those who were driving for Uber/Lyft in New York State during the following time periods.
November 10, 2014 to May 22, 2017 (Uber)
October 11, 2015 to July 31, 2017 (Lyft)
⚠️ Beware of Scams
The NY AG’s office also specifically warned drivers, who believe they are owed money related to the settlement, ⚠️NOT TO FALL FOR SCAMS⚠️. The AG’s office shared contact details (see below) for Rust Consulting, the official settlement administrator.
“The claims process has not yet opened. Rust Consulting is the official settlement administrator and will be contacting qualifying individuals beginning on March 1, 2024.
Beware of anyone who offers to help you file a claim for the Lyft or Uber settlements. Phone numbers, caller ID, and email addresses can be faked to appear to come from a legitimate source. Do not share your personal or financial information with anyone who contacts you pretending to help with your claim.
Instead, contact Rust Consulting directly at:
* 1-800-625-2332 or info@UberNYAGSettlement.com
* 1-800-433-5314 or info@LyftNYAGSettlement.com ”
- Office of the New York State Attorney General
New NYS & NYC TLC Driver Benefits
Back in November, Uber’s Chief Legal Officer, Tony West, nicely lays out the new benefits for both New York State and NYC Uber drivers as part of this settlement. We think the paid sick leave and the ability to appeal deactivations are specifically notable for NYC TLC-licensed drivers.
⭐= AutoMarketplace highlighting very noteworthy developments for NYC TLC-licensed drivers.
From Uber’s newsroom.
As part of this agreement, Uber will provide drivers across the state with the following:
Minimum Earnings Floor for Working Time: Drivers outside of NYC will earn at least $26/hour while en route to a rider or with a rider in the vehicle (NYC drivers have had an earnings standard for many years, which will remain in place).
Paid Sick Leave (PSL): Drivers in New York will receive up to 56 hours of paid sick leave per year:
In NYC ⭐, drivers will now receive an hour of PSL for every 30 hours en route to a rider or with a rider in the vehicle, at a rate of $17/hour (on top of the 6% of the existing earnings standard which includes paid time off)
Drivers in the rest of the State will be entitled to an hour of PSL for every 30 hours en route to a rider or with a rider in the vehicle, at the rate of at least $26/hour.
In-App Support: Support for drivers in English, Spanish, French, Russian, Bengali, and Chinese.
Appeal Options ⭐: Drivers can appeal all decisions by Uber to deactivate a Driver’s access to the app.
Driver Training: Paid training and education about driving on the app.
⭐= AutoMarketplace highlighting very noteworthy developments for NYC TLC-licensed drivers.
Lyft’s blog laid out the following.
Under the terms of the deal:
New York State drivers outside New York City will have a minimum earnings standard of $26 per hour for engaged time (the time they accept a ride through when they complete it), adjusted over time for inflation.
NYC drivers will continue to earn under the NYC Taxi & Limousine Commission’s (NYC TLC) Minimum Driver Pay Rules.
All New York drivers will be eligible to, among other things, accrue paid sick leave ⭐, receive a one-time payment to view educational resources, and more easily appeal deactivations ⭐ via a new feature in the driver app.
As always, let us know your thoughts in the comments section below or by emailing us at info@automarketplace.com.
AutoMarketplace NYC covers the for-hire transportation industry and automotive news. Check out AutoMarketplace on YouTube ▶️