Lyft $38,000,000 Settlement for Improper Pay Deductions

_Editor's Note: the claim deadline has been extended to December 31, 2024_

If you used the Lyft driver app to provide rides in New York between October 11, 2015, and July 31, 2017, you may be eligible to claim a monetary award from a class action settlement.

Lyft has agreed to pay $38,000,000 to settle a class action lawsuit for allegedly improper withholding of pay from drivers, including deductions for New York sales tax and Black Car Fund fees.

Who Can Claim an Award?

To be eligible for an award, you must meet specific criteria. According to the official settlement website, you must have:

• Used the Lyft driver app to provide rides in New York between October 11, 2015, and July 31, 2017.
• Had deductions for New York sales tax and Black Car Fund fees taken from your earnings during this period.

The Office of the New York State Attorney General (OAG) determined that Lyft violated New York laws by improperly withholding pay from drivers. As a result, eligible drivers may be owed money from the settlement fund.

What Awards Can Class Members Claim?

The settlement fund of $38 million will be used to compensate eligible drivers. The specific amount each driver can claim will be determined by the OAG based on the information provided. Payments will be made on a rolling basis, and eligible drivers will receive an IRS 1099 tax form for the payment.

While the exact amount each driver will receive is not specified, the settlement aims to compensate drivers for the improper deductions made by Lyft. The amount may be subject to applicable judgments or child-support enforcement orders, and the appropriate New York agency will inform drivers if their payment will be applied to such orders.

• Payments will be made on a rolling basis.
• Drivers will receive an IRS 1099 tax form for the payment.

Is Proof Required to Claim the Reward?

Not applicable. The settlement administrator, Rust Consulting, already has the necessary information to determine eligibility and process claims. Eligible drivers will need to verify their eligibility and claim their payment through the official settlement website.

How to Claim Your Award

To claim your award, visit the official Lyft settlement website at LyftNYAGSettlement.com by December 31, 2024. You will need to enter your Claimant ID and last name to verify your eligibility and claim your payment. You can also select how you would like to receive your payment.

If you prefer to claim your award by mail, you can contact Rust Consulting for assistance. Here is the mailing address:

NYAG v Lyft Settlement

C/O Rust Consulting Inc - 8435

PO Box 2396

Faribault, MN 55021-9096

Submitting a Claim

Follow these steps to submit your claim:

1. Visit the official settlement website at LyftNYAGSettlement.com.
2. Enter your Claimant ID and last name to verify your eligibility.
3. Select your preferred payment method.
4. Submit your claim by December 31, 2024.

How do I Get Paid?

Eligible drivers can choose their preferred payment method when submitting their claim. Options may include direct deposit, check, or other electronic payment methods. Payments will be made on a rolling basis, and drivers will receive an IRS 1099 tax form for the payment.

$38,000,000 Settlement Fund Breakdown

The settlement amount of $38 million will be used to compensate eligible drivers for the improper deductions made by Lyft.

The specific breakdown of the settlement fund includes:

• Compensation for drivers who had deductions for New York sales tax and Black Car Fund fees.
• Administrative costs for processing claims.
• Legal fees and expenses.

Important Dates

• Deadline to File a Claim: December 31, 2024.

When is the NYAG Lyft Settlement Payout Date?

Awards will be paid on a rolling basis, starting the week of August 5, 2024.

Why is there a Class Action Settlement?

The class action settlement was reached after the Office of the New York State Attorney General (OAG) investigated Lyft for improperly withholding pay from drivers. The investigation began with a complaint by the New York Taxi Workers Alliance about Lyft deducting sales tax and Black Car Fund fees from drivers' pay. The OAG determined that Lyft violated New York laws, leading to the settlement agreement.