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NYS strikes landmark settlement with Uber on unemployment insurance

  • / Updated:
  • Staff Report 

Governor Kathy Hochul has announced a landmark settlement between the New York State Department of Labor (NYSDOL) and Uber Technologies Inc.

This deal, the first of its kind in the United States, addresses both retrospective and future unemployment insurance contributions for Uber and Uber Eats drivers and couriers. Under the settlement, Uber will make a back payment covering dues since 2013 and commit to regular quarterly contributions to the New York State Unemployment Insurance Trust Fund.

DiSanto Propane (Billboard)

Governor Hochul hailed the settlement as a significant victory for workers in New York, emphasizing her administration’s dedication to securing fair wages and benefits. This settlement emerges from the NYSDOL’s assertive stance in negotiations, ensuring that drivers and couriers, deemed employees by the NYSDOL for unemployment insurance purposes, are entitled to unemployment benefits, despite Uber’s classification of them as independent contractors.

Details of the settlement’s financial terms remain confidential, following federal and state regulations on unemployment insurance data. However, both parties have agreed on the necessity for eligible drivers and couriers to receive unemployment benefits. NYSDOL Commissioner Roberta Reardon commended Uber’s collaboration in the agreement, asserting the importance of worker protection and contribution to the state’s unemployment insurance fund. Uber’s SVP & Chief Legal Officer, Tony West, acknowledged the positive outcome of the settlement, ensuring drivers maintain their valued independence while securing crucial benefits.