New York Lyft driver sales tax, fees $38M attorney general settlement

Update:

• The claim deadline for this class action settlement has been extended to Jan. 31, 2025.

The New York attorney general reached a $38 million settlement with Lyft to resolve claims that the company unlawfully deducted sales tax and fees from New York driver pay.

The settlement benefits Lyft drivers who used the Lyft Driver app to provide rides in New York between Oct. 11, 2015, and July 31, 2017, and who had deductions taken for New York sales tax and Black Car Fund fees.

The New York Attorney General Letitia James took legal action against Lyft, claiming the ride-booking company withheld wages from drivers by deducting taxes and fees from their pay instead of having passengers pay those expenses. According to James, Lyft also prevented drivers from receiving the benefits they were entitled to under New York law.

Lyft is a ride-hailing app that allows drivers to provide rides to passengers.

Lyft hasn’t admitted any wrongdoing but agreed to pay $38 million to resolve the attorney general’s allegations.

Under the terms of the Lyft settlement, drivers can receive a payment based on the rides they completed during the settlement period. Lyft will provide this information to the settlement administrator in order to facilitate the claims process.

The settlement also provides prospective benefits in the form of driver benefits for current drivers. Drivers will now receive guaranteed paid sick leave, minimum wages of $26 per hour for drives outside New York City, payment for up to one hour of training and other support.

There is no exclusion or objection deadline for the settlement.

The New York attorney general finalized the settlement Nov. 1, 2023.

To receive a settlement payment, drivers must submit a valid claim form by Jan. 31, 2025.

Who’s Eligible

Lyft drivers who used the Lyft Driver app to provide rides in New York between Oct. 11, 2015, and July 31, 2017, and who had deductions taken for New York sales tax and Black Car Fund fees.

Potential Award

Varies

Proof of Purchase

N/A

Claim Form

NOTE: If you do not qualify for this settlement do NOT file a claim.

Remember: you are submitting your claim under penalty of perjury. You are also harming other eligible Class Members by submitting a fraudulent claim. If you’re unsure if you qualify, please read the FAQ section of the Settlement Administrator’s website to ensure you meet all standards (Top Class Actions is not a Settlement Administrator). If you don’t qualify for this settlement, check out our database of other open class action settlements you may be eligible for.

Claim Form Deadline

01/31/2025

Case Name

In the Matter of the Investigation of Letitia James, Attorney General of the State of New York of Lyft Inc., AOD No. 23-041, before the Office of the Attorney General Labor Bureau

Final Hearing

11/30/2023

Settlement Website

LyftNYAGSettlement.com

Claims Administrator

[email protected]
800-433-5314

Class Counsel

N/A

Defense Counsel

N/A