Additionally, drivers will now be eligible for up to 56 hours of guaranteed paid sick leave each year, a crucial safety net for those who venture outside New York City. James also noted that drivers will receive clear, concise hiring notices and earning statements, providing transparency about their earnings.
Employee Status vs. Independent Contractor
Notably, these benefits extend to drivers as employees, rather than independent contractors, the classification typically used by ride-hailing companies. However, Uber and Lyft spokespersons, when approached by Law360, reaffirmed their stance that drivers remain independent contractors.
Uber and Lyft $328M Pay Probe : Monitoring for Compliance
James confirmed that her office would refrain from pursuing formal investigations, litigation, or additional monetary relief as long as Uber and Lyft honor their substantial financial commitments.
Positive Response and Commitments
Lyft’s Chief Policy Officer, Jeremy Bird, hailed the agreement as a victory for drivers. He emphasized that it builds upon New York’s reputation for providing portable benefits through its Black Car Fund, ultimately enhancing the well-being of drivers.