New York must immediately start paying unemployment benefits to ride-hailing drivers, a federal judge ruled Tuesday.
Why it matters: This is the latest victory for Uber and Lyft drivers who have waged a lengthy campaign pushing for benefits comparable to those received by traditional workers. Previous New York rulings have established that drivers are eligible for unemployment benefits.
Details: The ruling is a preliminary injunction, meaning the state must follow the order even while it appeals and litigation continues in the case, in which drivers sued New York over months-long delays in processing unemployment claims.
- The New York Department of Labor must form a working group within seven days to begin working through the backlog of claims.
- The judge also called out Uber and Lyft for not being forthcoming enough with driver earnings data to make claims processing faster, though ultimately determined that it shouldn't be a reason for the state to be so delayed in processing the claims.
From an Uber spokesperson:
Lyft declined to comment as it's not a party to the lawsuit, though it reiterated that it continues to work with the state's labor department on providing data.
Editor's note: The story has been updated with responses from Uber and Lyft and additional details from the judge's ruling.
