Uber and Lyft have agreed to a first-of-its-kind deal with New York that sees the ride-sharing giants pay $328m (£258m) to settle accusations they withheld wages and benefits and passed on fees and taxes to drivers, rather than passengers.

The settlement, announced by New York State Attorney General Letitia James, followed an investigation into a 2020 complaint from the New York Taxi Workers Alliance. The probe focused on the companies’ operating period from 2014 to 2017.