Uber drivers in the city of New York City have filed a suit against the company for allegedly failing to pay back taxes that the company deducted from their earnings.
New York Taxi Workers Alliance — a vocal critic of Uber and the ride-hail industry has filed the suit against the company in the federal court of Manhattan on November 6th. According to the lawsuit, the plaintiffs are looking to represent 96,000-plus Uber drivers in New York City who worked for the company from 2013-2017 and did not opt-out of conciliation and it claims that the company deducted sales tax and the Black Car Fund surcharge from drivers in the mentioned time period.
The lawsuit is asking for all of that money back.
“Uber bosses are raking in millions while drivers struggle to feed their families, Uber’s business model depends on exploiting vulnerable low-wage workers — including by stealing from driver pay. But time and time again, when workers fight back, we beat Uber even with all their billions.”Bhairavi Desai, executive director of the Taxi Workers Alliance, said in a statement.
According to the state law created in 1999, the Black Car Fund that covers injured drivers’ medical costs and lost wages tacks a fee on to every Uber, Lyft, and traditional black car fare but a new report from Crain’s New York Business says that since 2013 that fee has been 2.5 percent.
This is not the first time Uber has been charged with failing to repay taxes taken out of drivers’ earnings. In 2017, the company confessed that it had incorrectly calculated its commissions based on earnings that included state taxes, rather than pretax amounts the company said it would pay back the lost earnings, but didn’t reveal how much of that money would be repaid.