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Ride-sharing companies Uber and Lyft agreed to pay a combined $328 million to settle a wage theft claim, the Office of New York Attorney General Letitia James said.
Uber will have to pay $290 million, while Lyft will pay the remaining $38 million. James said that Uber and Lyft illegally deducted sales taxes and fees for New York's Black Car Fund from drivers instead of charging passengers the taxes and fees.
The money will dispersed to drivers impacted by the dedication. James' office believes that upwards of 100,000 drivers could be entitled to compensation.
In addition, Uber and Lyft also agreed to enact an "earnings floor" to ensure that all drivers in the state are paid a minimum rate. Drivers will also be able to accrue paid sick days.
"For years, Uber and Lyft systemically cheated their drivers out of hundreds of millions of dollars in pay and benefits while they worked long hours in challenging conditions," James said in a statement. "These drivers overwhelmingly come from immigrant communities and rely on these jobs to provide for their families. This settlement will ensure they finally get what they have rightfully earned and are owed under the law."