Uber and Lyft have agreed to collectively pay $328 million to resolve allegations made by New York's attorney general, Letitia James, that the ride-sharing firms engaged in a consistent pattern of underpaying drivers and withholding benefits.

In response to the multi-year investigation by her office, Attorney General Letitia James announced that Uber will provide $290 million, while Lyft will contribute $38 million to address these claims. Furthermore, the settlement ensures that drivers will receive minimum hourly wages, access to paid sick leave, as well as notifications and in-app support for addressing their inquiries about earnings and overall working conditions.

Over 100,000 present and past drivers in the state are eligible to receive settlement funds and associated advantages.

In a statement, Attorney General Letitia James remarked, "This settlement will guarantee that they receive the compensation they have rightfully earned and are entitled to according to the law."

She characterized the agreement with the San Francisco-based companies as the most substantial resolution for wage theft in the history of her office.

Uber and Lyft have consistently faced allegations across the country that they have unfairly withheld pay and benefits from drivers, including many who are immigrants, occasionally by categorizing them as independent contractors rather than employees.

James asserted that Uber and Lyft were at fault for wrongly subtracting sales taxes...

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