Uber, while denying any wrongdoing, described the deal as a “first-of-its-kind agreement.” Tony West, Uber’s Chief Legal Officer, underscored the flexibility that drivers will continue to enjoy while gaining new benefits and protections, such as a minimum earnings standard and paid sick leave.
Uber and Lyft $328M Pay Probe : Government Involvement
New York Governor Kathy Hochul unveiled a separate agreement between her office and the state’s Department of Labor (DOL) and Uber. While the exact amount remains confidential, this agreement mandates quarterly payments to the state’s Unemployment Insurance Trust Fund, along with retroactive contributions for payments dating back to 2013.
A Powerful Message to Workers
Governor Hochul heralded this unprecedented settlement, stating, “New York has your back.” This development occurs amid an ongoing debate between the state DOL and Uber regarding the employment status of drivers.
Uber and Lyft $328M Pay Probe : Safeguarding Benefits
Regardless of this employment status dispute, the New York State DOL and Uber have concurred that drivers and couriers eligible for unemployment benefits should receive them. Uber will contribute to the state’s UI Trust Fund on their behalf, ensuring the protection of drivers and safeguarding New York’s Unemployment Insurance Trust Fund, as stated by New York State DOL Commissioner Roberta Reardon.
