Massachusetts Attorney General Andrea Campbell says her office has secured a settlement in its case against Uber and Lyft that ensures a number of benefits and protections for drivers who work for those rideshare companies.Under the agreement, Uber and Lyft will pay their drivers a minimum wage of $32.50 per hour. The drivers will also receive guaranteed paid sick leave, as well as a stipend to buy into the Massachusetts paid family and medical leave program.The settlement also includes a pooled health insurance benefit, in which Uber and Lyft will allow drivers to pool their hours driving for the two companies to obtain access to a health insurance stipend. Uber and Lyft drivers are also eligible for occupational accident insurance paid by the companies for up to $1 million in coverage for work-related injuries.Campbell said Uber and Lyft will also pay a combined total of $175 million to Massachusetts to resolve allegations that the company violated the state’s wage and hour laws. The attorney general also said a “substantial majority” of that money will be distributed to drivers who currently work for or used to work for the two rideshare companies.”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,” Campbell said in a statement.The settlement resolved the lawsuit first filed in July 2020 by former Attorney General Maura Healey, who is now Massachusetts governor.”Our lawsuit against Uber and Lyft was always about fairness for drivers,” Healey said in a statement. “I congratulate Attorney General Campbell and her team for securing this settlement that delivers historic wages and benefits to right the wrongs of the past and ensure drivers are paid fairly going forward.”The settlement between the Attorney General’s Office and the rideshare companies came just hours after the highest court in Massachusetts, the Supreme Judicial Court, signed off on a pair of ballot questions for this fall’s election that would have determined whether Uber and Lyft drivers in the state are considered employees or independent contractors.”With the settlement of the case, the issues around driver classification and benefits have been resolved, meaning there is no longer an immediate need for the ballot measure,” reads a statement from Lyft.Campbell said that additional provisions in the agreement dictate that Uber and Lyft provide drivers with information about the length of a trip, the destination and expected earnings before they are expected to accept a ride. The companies are also obligated to provide drivers with detailed pay information about their earnings and how much a rider has paid once a trip is completed.The agreement also details a process to address any violations by either company, including a process for Uber and Lyft to address any driver complaints to the Massachusetts Attorney General’s Office and enforcement by a court if the companies don’t comply.Click here to read a copy of the settlement.
Massachusetts Attorney General Andrea Campbell says her office has secured a settlement in its case against Uber and Lyft that ensures a number of benefits and protections for drivers who work for those rideshare companies.
Under the agreement, Uber and Lyft will pay their drivers a minimum wage of $32.50 per hour. The drivers will also receive guaranteed paid sick leave, as well as a stipend to buy into the Massachusetts paid family and medical leave program.
The settlement also includes a pooled health insurance benefit, in which Uber and Lyft will allow drivers to pool their hours driving for the two companies to obtain access to a health insurance stipend. Uber and Lyft drivers are also eligible for occupational accident insurance paid by the companies for up to $1 million in coverage for work-related injuries.
Campbell said Uber and Lyft will also pay a combined total of $175 million to Massachusetts to resolve allegations that the company violated the state’s wage and hour laws. The attorney general also said a “substantial majority” of that money will be distributed to drivers who currently work for or used to work for the two rideshare companies.
“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,” Campbell said in a statement.
The settlement resolved the lawsuit first filed in July 2020 by former Attorney General Maura Healey, who is now Massachusetts governor.
“Our lawsuit against Uber and Lyft was always about fairness for drivers,” Healey said in a statement. “I congratulate Attorney General Campbell and her team for securing this settlement that delivers historic wages and benefits to right the wrongs of the past and ensure drivers are paid fairly going forward.”
The settlement between the Attorney General’s Office and the rideshare companies came just hours after the highest court in Massachusetts, the Supreme Judicial Court, signed off on a pair of ballot questions for this fall’s election that would have determined whether Uber and Lyft drivers in the state are considered employees or independent contractors.
“With the settlement of the case, the issues around driver classification and benefits have been resolved, meaning there is no longer an immediate need for the ballot measure,” reads a statement from Lyft.
Campbell said that additional provisions in the agreement dictate that Uber and Lyft provide drivers with information about the length of a trip, the destination and expected earnings before they are expected to accept a ride. The companies are also obligated to provide drivers with detailed pay information about their earnings and how much a rider has paid once a trip is completed.
The agreement also details a process to address any violations by either company, including a process for Uber and Lyft to address any driver complaints to the Massachusetts Attorney General’s Office and enforcement by a court if the companies don’t comply.
