Uber, Lyft Settle: MA Drivers To Earn $32.50/Hour

According to a settlement announced by Attorney General of Massachusetts, Andrea Campbell, the drivers of Uber and Lyft will earn a minimum of $32.5 per hour along with a suite of benefits and other protections. Moreover, both companies are required to pay a $175 million fine to the state, which will be distributed to current and former drivers for their troubles. 

This settlement marks the end of a year-long litigation between these companies and stopped the threat to their attempt to change the law in the state by a proposed 2024 ballot initiative. This would have resulted in drivers getting less reimbursement and no minimum wage guarantee. Andrea also added, “For years, these companies have underpaid their drivers and denied them basic benefits. Today’s agreement holds Uber and Lyft accountable and provides their drivers, for the very first time in Massachusetts, guaranteed minimum pay, paid sick leave, occupational accident insurance, and health care stipends.”

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Both companies also released statements on the settlement. Uber says this settlement is “an example of what independent, flexible work with dignity should look like in the 21st century.” It further added, “In taking this opportunity, we’ve resolved historical liabilities by constructing a new operating model that balances both flexibility and benefits.” Lyft said, “It is a major victory in a multiyear campaign by Bay State drivers to secure their right to remain independent while gaining access to new benefits.” 

Both companies pushed a ballot question that would have made the drivers independent contractors, not employees. This would have meant that the companies wouldn’t have been liable to pay the drivers minimum wage or standard benefits. 

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