The Uber Driver Lawsuit Settlement 2025 is a groundbreaking legal victory for gig workers in Massachusetts and New York, offering over $500 million in compensation to eligible Uber and Lyft drivers.
If you’ve driven for either company in these states, you could be entitled to a payout worth hundreds or even thousands of dollars.
This article will guide you through who qualifies, how to file a claim, and the benefits now available to gig workers.
Eligibility
To qualify for the Uber Driver Lawsuit Settlement 2025, you must have driven for Uber or Lyft in one of the following states during specific periods:
| State | Company | Eligible Period |
|---|---|---|
| Massachusetts | Uber/Lyft | July 14, 2020 – July 2, 2024 |
| New York | Uber | Nov 10, 2014 – May 22, 2017 |
| New York | Lyft | Oct 11, 2015 – July 31, 2017 |
If you completed rides during these periods, you may qualify for compensation. This includes active and deactivated driver accounts, as long as rides were completed.
Settlement
The lawsuit originated from claims that Uber and Lyft misclassified drivers as independent contractors rather than employees.
As a result, drivers were denied basic benefits like minimum wage, overtime, paid sick leave, and health insurance.
Additionally, it was alleged that the companies made illegal deductions from driver earnings, including taxes and fees that should have been covered by the companies or riders.
Without admitting wrongdoing, Uber and Lyft agreed to the settlement to resolve these claims and avoid prolonged litigation. The settlement funds will compensate affected drivers and introduce new benefits.
Massachusetts Settlement
In Massachusetts, the state secured a $175 million settlement for drivers who operated between July 14, 2020, and July 2, 2024. This settlement also brings new benefits for gig workers:
- Minimum Wage Guarantee: Starting August 15, 2024, drivers must earn at least $32.50/hour during active ride time, increasing to $33.48/hour by January 1, 2025.
- Paid Sick Leave: Drivers earn paid sick leave starting November 1, 2024.
- Health Benefits Stipend: Available from March 1, 2025, for drivers working enough hours.
- Injury Protection: Occupational accident insurance for on-the-job injuries.
- Language Support: In-app support in multiple languages by July 2025.
New York Settlement
In New York, Uber and Lyft agreed to a $328 million settlement following accusations that they wrongfully deducted sales taxes and Black Car Fund fees directly from driver earnings.
Who Qualifies?
- Uber Drivers: Active between November 10, 2014, and May 22, 2017.
- Lyft Drivers: Active between October 11, 2015, and July 31, 2017.
How to File a Claim
- Visit ubernyagsettlement.com.
- Enter your last name, email, or phone number associated with your Uber or Lyft account.
- (Optional) Enter your Driver ID.
- Submit your claim.
Payment Details
Payouts will be calculated based on the number of rides you completed and any deductions taken from your earnings. Payments will be processed on a rolling basis.
How to Claim Your Share
- No action is required to receive your payout. The state and companies will contact eligible drivers.
- Payouts are expected to begin after January 1, 2025.
- Make sure your Uber or Lyft account details are up to date.
For New York Drivers:
- Visit ubernyagsettlement.com and file your claim.
- Double-check that your contact details are accurate.
- Payments will be distributed based on ride history and deduction amounts.
Tips to Maximize
- Review Past Ride Logs: Check your driver app for ride history.
- Keep Contact Details Updated: Make sure your Uber or Lyft account has the correct information.
- Be Aware of Tax Obligations: Settlement payouts are usually taxable—set aside a portion for taxes.
- Act Quickly: Filing early ensures your claim is processed without delays.
What This Means
This settlement is one of the largest of its kind in the U.S. and sets a precedent for how gig workers are treated. It highlights the growing pressure on tech companies to offer fair pay and benefits to drivers. This settlement could inspire similar legal actions in other states.
Takeaways
- Eligible drivers will receive compensation based on the number of rides completed and deductions taken.
- Massachusetts drivers automatically receive payouts, while New York drivers must file claims.
- New benefits for Massachusetts drivers include a minimum wage guarantee, paid sick leave, and health benefits.
If you drove for Uber or Lyft in Massachusetts or New York, don’t leave money on the table. File your claim or ensure your account is up to date to receive your payout.
FAQs
Who is eligible for the Uber Driver Lawsuit Settlement 2025?
Drivers who completed rides for Uber or Lyft in Massachusetts (July 14, 2020 – July 2, 2024) or New York (Uber: Nov 10, 2014 – May 22, 2017, Lyft: Oct 11, 2015 – July 31, 2017).
How much money can I receive?
The amount varies based on the number of rides completed and deductions taken.
How do I file a claim in New York?
Visit ubernyagsettlement.com and enter your information.
Do Massachusetts drivers need to file a claim?
No, eligible drivers will be contacted automatically by the state or companies.
When will payments be made?
Payments in Massachusetts start after January 1, 2025. New York payments are processed on a rolling basis.
