In a significant class action settlement, rideshare company Lyft has agreed to pay $38 million to its drivers who operated in New York state from October 11, 2015, through July 31, 2017. The terms of the settlement came about after an extensive multi-year investigation led by the New York Attorney General Leticia James. The investigation revealed that Lyft, similarly to Uber, was deducting an 11.4 percent "administrative charge" from drivers' payments, a charge equivalent to the sales tax and Black Car Fund fees owed by riders. This practice not only violated New York labor laws but also failed to provide drivers with paid sick leave, a benefit mandated by New York City and State laws for employees. This settlement comes as part of a larger $328 million fund, with Uber contributing $290 million for similar allegations. The funds will be distributed among current and former drivers who submit valid claims. This settlement doesn't only bring financial compensation, but it also triggers new benefits for current drivers, including guaranteed paid sick leave, minimum hourly earnings if driving outside New York City, clearer documentation of earnings, and the ability to appeal deactivation.