Last week, Uber was sued for deducting sales tax from their wages. The New York Taxi Workers Alliance filed the suit. Almost 100,000 drivers could join the class-action.
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The company allegedly took money out of drivers’ wages to pay for expenses such as service taxes as well as a service fee, leading to drivers covering costs that should be paid by the company.
“It’s got to be at least $1 billion they took from drivers,” said Bhairavi Desai, executive director of the Taxi Workers Alliance. “We have always thought that process was illegal. I think people have started to understand that this is not a harmless multinational company. This is actually a harmful company with business practices that can leave drivers in poverty.”
Per Engadget, the ride-hailing company “has declined to comment. If the lawsuit succeeds, though the company could be asked to pay drivers everything they believe they’re owed from the roughly six-year period. That could get expensive. When Uber acknowledged that drivers were underpaid in May 2017 after taking too large a cut, it said the compensation amounted to $900 per driver. Any repaid tax and surcharge deductions might not be as big, but they could still be substantial.”
References:
- https://www.nydailynews.com/new-york/ny-driver-sue-uber-taxes-pricing-wages-20191106-seapyuulkndpppwbwgaj77txwa-story.html
- https://www.engadget.com/2019/11/06/uber-drivers-sue-over-pay-deductions/
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