Lyft reached a historic agreement with the New York Attorney General’s Office granting drivers new benefits and allowing them to keep their flexibility.
The agreement prioritizes the benefits drivers want without sacrificing the independence and flexibility they need.
94% of New York drivers who use the Lyft app support a policy proposal where they would remain independent contractors, maintain the current flexibility they enjoy, and be given some, but not all, of the benefits that employees receive.
57% would stop driving with app-based platforms if they lost their independence.
Under the terms of the deal:
New York drivers outside New York City will have a minimum earnings standard of $26 per hour for engaged time (the time they accept a ride through when they complete it), adjusted over time for inflation.
NYC drivers will continue to earn under the Taxi & Limousine Commission’s Minimum Driver Pay Rules.
All New York drivers will be eligible to, among other things, accrue paid sick leave, receive a one-time payment to view educational resources, and more easily appeal deactivations via a new feature in the driver app.
Today’s announcement builds on the benefits and protections that drivers already enjoy through the state’s Black Car Fund, which provides accident disability and workers’ compensation, dental and vision coverage, telemedicine services, and more.
“This is a win for drivers, and one we are proud to have achieved with the New York Attorney General’s Office. New York has long been a leader in providing drivers portable benefits through flexible earning opportunities with its Black Car Fund, and this agreement expands upon that foundation. We look forward to continuing this work in order to provide New York drivers the independence and full range of benefits available to those in other states, like California and Washington,” said Jeremy Bird, Lyft Chief Policy Officer.
This agreement resolves an investigation by the Attorney General’s office related to the classification of drivers who use the Lyft platform as independent contractors and certain fees Lyft charged between 2015-2017.
Financial Disclosure: As we accrued for this agreement in Q2 of 2023, we do not expect a material impact on our P&L from this event. We expect to make a payment of approximately $20 million in Q4 of 2023, while the remainder will be paid in 23 monthly installments.
Forward-Looking Statements: Certain statements contained in this announcement are “forward-looking statements” about Lyft within the meaning of the securities laws, including statements about our operations, strategies, markets, and business, including our operations in New York and financial outlook. Such statements, which are not of historical fact, involve estimates, assumptions, judgments and uncertainties. There are a number of factors that could cause actual results or outcomes to differ materially from those addressed in the forward-looking statements. Such factors are detailed in Lyft’s filings with the Securities and Exchange Commission. Lyft disclaims any obligation to update any forward-looking statements to reflect future events, except as required by applicable law.