It was agreed that Uber and Lyft would pay a total of $328 million to drivers who were owed money

For withholding driver pay, Uber and Lyft paid $328 million Thursday.

Uber paid $290 million and Lyft $38 million in the largest wage-theft settlement ever reached by New York Attorney General Letitia James.

Cheated drivers will receive back pay, mandatory paid sick leave, and other benefits. Eligible drivers can claim their money.

The "historic" agreement "builds on the benefits and protections that drivers already enjoy through the state’s Black Car Fund," Lyft said. The agreement was a "win" for drivers, said company chief policy officer Jeremy Bird.

Uber and New York Attorney General Letitia James reached a deal today that advances that goal.

The attorney general said Uber deducted sales taxes and Black Car Fund fees from drivers' payments from 2014 to 2017. Passengers should have paid them.

Uber's terms of service stated that drivers were "entitled to charge [the passenger] for any tolls, taxes or fees incurred," but the Uber Driver app never allowed drivers to do this.

From 2015 to 2017, Lyft deducted a 11.4% "administrative charge" from New York drivers' payments to cover sales tax and Black Car Fund fees.

Uber and Lyft also failed to provide drivers with New York City and State-mandated paid sick leave.

Besides paying former drivers $328 million in back pay, Uber and Lyft agreed to a "earnings floor," guaranteeing state-wide drivers a minimum wage. Outside New York City, drivers earn $26 per hour. The Taxi & Limousine Commission established minimum driver pay in 2019 for New York City drivers.

Paid sick leave is now guaranteed for Uber and Lyft drivers. Drivers receive one hour of sick pay per 30 hours, up to 56 hours per year.