Uber and Lyft have reached a settlement of over $300 million to resolve allegations of wage theft, as confirmed by the New York Attorney General's office. These ride-hailing firms were accused of both withholding drivers' earnings and failing to offer mandated paid sick leave within the state.
Under the settlement, Uber is slated to pay $290 million, while Lyft will contribute $38 million, potentially benefiting over 100,000 drivers. Additionally, they will be obligated to ensure that drivers located outside of New York City earn a minimum of $26 per hour. This development comes amidst prior criticisms and regulatory scrutiny regarding their treatment of drivers.
New York’s Wage Theft Prevention Act applies to all employers. The Act requires that employers provide notice to employees of their rate(s) of pay, designated pay day, the employer’s intent to claim allowances (like tip or meal allowances) as part of the minimum wage, and the basis of wage payment (whether paying by hour, shift, day, week, piece, etc.).
The law also requires that the notice contain the employer's "doing business as" names, and that it be provided at the time of hiring and within 7 days of a change if the change is not listed on the employee’s pay stub for the following pay period.
The notice must be provided in the employee’s primary language, as identified by the employee, through translated notices provided by the Department of Labor. The Act also requires employers to maintain copies of payroll records for six years.
If you are an employer that is not in compliance with the Act or an employee that has not received notice under the Act, the attorneys at Outside Legal Counsel LLP can help. Please reach out to us for a consultation.
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