Massachusetts Attorney General Andrea Campbell said her office has reached a settlement in its case against Uber and Lyft that guarantees a number of benefits and protections for drivers who work for the ride-hailing companies. Under the agreement, Uber and Lyft will pay their drivers a minimum wage of $32.50 per hour. Drivers will also receive guaranteed paid sick leave, as well as a stipend to enroll in Massachusetts’ Paid Family and Medical Leave program. The agreement also includes a pooled health insurance benefit, in which Uber and Lyft will allow drivers to pool their driving hours for both companies to gain access to a health insurance stipend. Uber and Lyft drivers are also eligible for workers’ compensation insurance paid by the companies that provides up to $1 million in coverage for work-related injuries. Campbell said Uber and Lyft will also pay a combined $175 million to Massachusetts to resolve allegations that the company violated state wage and hour laws. The attorney general also said a “substantial majority” of that money will be distributed to drivers who currently work or have worked for the two ride-hailing companies. “For years, these companies underpaid their drivers and denied them basic benefits. Today’s agreement holds Uber and Lyft accountable and provides their drivers, for the first time ever in Massachusetts, with a guaranteed minimum wage, paid sick leave, workers’ compensation insurance and health care benefits,” Campbell said in a statement. The settlement ended the lawsuit first filed in July 2020 by former Attorney General Maura Healey, who is now governor of Massachusetts. “Our lawsuit against Uber and Lyft has always been about fairness for drivers,” Healey said in a statement. “I applaud Attorney General Campbell and her team for securing this settlement that provides historic wages and benefits to right the wrongs of the past and ensure drivers are paid fairly in the future.” The agreement between the attorney general’s office and the ride-hailing companies came just hours after Massachusetts’ highest court, the Supreme Judicial Court, approved 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,” Lyft said in a statement. Campbell said additional provisions of the agreement require Uber and Lyft to provide drivers with information about the length of a ride, the destination and expected earnings before they are expected to accept a ride. The companies are also required to provide drivers with detailed information about their earnings and how much a passenger pays after the ride is complete. The agreement also details a process for addressing any violations by either company, including a process for Uber and Lyft to address any driver complaints with the Massachusetts Attorney General’s Office and enforcement in court if the companies fail to comply. Click here to read a copy of the settlement.
Massachusetts Attorney General Andrea Campbell said her office won a settlement in its case against Uber and Lyft that guarantees a number of benefits and protections to drivers who work for these ride-hailing companies.
Under the agreement, Uber and Lyft will pay their drivers a minimum hourly wage of $32.50. Drivers will also receive guaranteed paid sick leave, as well as a stipend for joining the Massachusetts Paid Family and Medical Leave program.
The settlement also includes a joint health insurance benefit, in which Uber and Lyft will allow drivers to pool their driving hours so that both companies have access to a health insurance benefit. Uber and Lyft drivers are also eligible for company-paid workers’ compensation insurance for up to $1 million in coverage for workplace injuries.
Campbell said Uber and Lyft would also pay a combined $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 would be distributed to drivers who currently work or worked for the two ride-hailing 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 first time ever in Massachusetts, with a guaranteed minimum wage, paid sick leave, workers’ compensation insurance and health care benefits,” Campbell said in a statement.
The agreement ended a lawsuit first filed in July 2020 by former Attorney General Maura Healey, now governor of Massachusetts.
“Our lawsuit against Uber and Lyft has always been about fairness for drivers,” Healey said in a statement. “I commend Attorney General Campbell and her team for securing this settlement that provides historic wages and benefits to right past wrongs and ensure drivers are paid fairly in the future.”
The settlement between the attorney general’s office and ride-hailing companies came just hours after Massachusetts’ highest court, the Supreme Judicial Court, approved two ballot questions for this fall’s election that would have determined whether drivers Uber and Lyft in the state are considered employees or independent contractors.
“With the settlement of the case, issues related to driver classification and benefits have been resolved, meaning there is no longer an immediate need for a ballot measure,” it said. we read in a press release from Lyft.
Campbell said additional provisions in the agreement require Uber and Lyft to provide drivers with information about the length of a trip, destination and expected earnings before they accept a ride. Companies are also required to provide drivers with detailed salary information about their earnings and how much a passenger paid once the trip is completed.
The agreement also details a process for addressing any violations by either company, including a process for Uber and Lyft to address any driver complaints with the Massachusetts Attorney General’s Office and enforcement by a court if the companies fail to comply.
Click here to read a copy of the rules.