Lyft $38,000,000 Settlement for Improper Withholding of Pay

Lyft has agreed to pay $38,000,000 to settle a class action lawsuit for alleged improper withholding of pay from drivers. This settlement resolves an investigation by the Office of the New York State Attorney General (OAG) into Lyft's practices. Eligible drivers can receive payments from the settlement fund.

Who Benefits?: Drivers who used the Lyft driver app to provide rides in New York between October 11, 2015, and July 31, 2017, and had deductions for New York sales tax and Black Car Fund fees taken from their earnings.

How much can I get?: The amount each driver can receive will be determined by the OAG based on the information provided.

Important Dates

• Deadline to File a Claim: July 29, 2024
• A Final Hearing took place on November 30, 2023

Can I Claim an Award?

To be eligible for a settlement payment, you must have used the Lyft driver app to provide rides in New York between October 11, 2015, and July 31, 2017, and had deductions for New York sales tax and Black Car Fund fees taken from your earnings. The OAG has determined that Lyft violated New York laws during this period by improperly withholding pay from drivers.

Eligible drivers will receive a notice from Rust Consulting, the official settlement administrator. Rust Consulting is responsible for sending notices, processing settlement payments, and addressing any questions through its customer service.

What Can I Claim?

Eligible drivers can claim a settlement payment from the $38 million fund established by Lyft. The exact amount each driver will receive is determined by the OAG based on the information provided. Payments will be made on a rolling basis, and drivers will receive an IRS 1099 tax form for the payment, as it is considered taxable income.

Products or Services Involved

• Lyft driver app rides provided in New York between October 11, 2015, and July 31, 2017
• Deductions for New York sales tax and Black Car Fund fees

Is Proof Required to Claim the Reward?

Proof is required to claim the reward. Eligible drivers will receive a notice from Rust Consulting and can file a claim online.

How to Claim Your Award

To claim your award, visit the official Lyft settlement website's Claim Form Page. You will need to enter your Claimant ID and last name to verify your eligibility and claim your payment. You can select how you would like to receive your payment.

File your claim as soon as possible. Payments will be made on a rolling basis, and the deadline to file a claim is July 29, 2024.

Why is There a Class Action Settlement?

The class action settlement was reached after the OAG investigated Lyft's practices of deducting sales tax and Black Car Fund fees from drivers' pay. The investigation began with a complaint by the New York Taxi Workers Alliance. The OAG determined that Lyft violated New York laws by improperly withholding pay from drivers during the period between October 11, 2015, and July 31, 2017.

The next steps for eligible drivers include filing a claim online and selecting how they would like to receive their payment. The OAG and Rust Consulting are working together to ensure that eligible drivers receive their settlement payments promptly.