Uber & Lyft $328M Settlement: What NY Drivers Got

In short: In November 2023 the New York Attorney General (AG) settled with Uber ($290 million) and Lyft ($38 million) because they took sales tax and Black Car Fund fees out of drivers' pay from 2014 to 2017, money riders should have paid. Drivers from those years could claim a share through the administrator, Rust Consulting; the claim deadlines in the AG's documents have passed. The settlement also gave every current New York Uber and Lyft driver lasting rights: paid sick leave, earnings statements, a rider-price notice after each trip, chat support and deactivation appeals.

Everything below is from the AG's press release, settlement page and 2024 information sheet, read on October 12, 2026. It is not legal advice.

What the Attorney General found

• Uber, from 2014 to 2017, deducted sales taxes and Black Car Fund fees from drivers' pay "when those taxes and fees should have been paid by passengers." Its terms told drivers it would only deduct its commission and that drivers were "entitled to charge [the passenger] for any tolls, taxes or fees incurred," but the Driver app gave no way to do that.
• Lyft, from 2015 to 2017, deducted an 11.4% "administrative charge" in New York, equal to the sales tax and Black Car Fund fees riders should have paid.
• Both companies also failed to give drivers the paid sick leave that employees get under New York City and State law.

The AG called it the largest back-pay settlement her office had ever won, with the full amount going to drivers.

Uber and Lyft compared

The claims process, and where it stands

Payments were made "on a rolling, monthly basis by check, Venmo or PayPal." If you filed and have not been paid, or are not sure whether you were on the list, contact Rust Consulting directly with your Claim ID and last name.

Rights that continue today

The money was for past deductions. These parts of the deal apply to drivers using the apps now:

• Paid sick leave: 1 hour for every 30 hours worked (from accepting a trip to drop-off), up to 56 hours a year. See paid sick leave for Uber and Lyft drivers.
• Statement after every trip: within 24 hours, the time worked, miles driven and what the rider paid. See Uber and Lyft pay statements.
• Hiring notices and earnings statements for each pay period.
• Paid training: up to one hour of required training, at the higher of $15 an hour or the lowest minimum wage.
• Chat support: Uber in English, Spanish, French, Russian, Bengali and Chinese; Lyft in English, Spanish and French.
• Deactivation appeals: the AG says drivers can appeal all deactivations from the Uber and Lyft platforms, through a process run by the company. See deactivated by Uber or Lyft.

NYC versus the rest of New York

The deal treats NYC differently because TLC already sets a minimum pay here:

Outside NYC, the company compares your pay with the floor for each earnings period of up to 14 days and pays any difference by the next period.

What the settlement did not do

It helps to be clear about the limits.

• It did not set your payout amount in public. The AG's documents describe who is eligible and how claims work, but not a fixed amount per driver. Your share depended on your own trips and deductions in the eligible years.
• It did not make app drivers employees. It added specific benefits by agreement. Unemployment insurance status is a separate question decided under state UI law; see unemployment benefits for app drivers.
• It did not change TLC's minimum pay in NYC. NYC trips are still paid under TLC's per-trip rule. The settlement's $26 hourly floor is for trips outside the city that TLC rules do not cover.
• It did not cover yellow taxi, green cab or other base drivers. It is about trips through the Uber and Lyft Driver apps.

Checking that it is not happening again

The case was about fees that belong on the rider's bill being taken from the driver. Today, TLC's trip records for Uber and Lyft list sales tax and the Black Car Fund charge as separate fields, apart from driver pay. Over September 2025 to August 2026 those records show about $569 million of sales tax and $170 million of Black Car Fund charges on top of the base fares, as we explain in rider fare vs driver pay. The Black Car Fund says the charge may appear on pay statements "but it does not come out of your pay."

On your own statements, look for any line that reduces your pay because of a tax or fee charged to the rider. If you see one you cannot explain, ask the company in writing through in-app chat and keep the answer. For a short answer on this, see does sales tax come out of Uber driver pay?. Underpayment of TLC minimum pay goes to TLC's Driver Protection Unit at driverprotection@tlc.nyc.gov.

Related

• NYC's own deactivation law and its status: Local Law 52 and does TLC handle Uber deactivations?
• Choosing where to drive: yellow taxi vs Uber/Lyft and can I use my personal car for Uber in NYC?
• If a TLC summons arrives instead: got a TLC summons
• Everything for app drivers: Uber and Lyft driver hub