BOSTON — A “landmark” deal has been reached with Uber and Lyft to pay their drivers a minimum of $32.50 an hour, paid sick leave and “a suite of benefits and protections,” a company said Attorney General Andrea Joy Campbell on Thursday.
The measure ensures that tens of thousands of Uber and Lyft drivers in Massachusetts will receive a minimum wage.
Uber and Lyft will also pay a combined $175 million to the state to resolve allegations that the company violated Massachusetts wage and hour laws. Campbell said “a substantial majority” of the settlement will be paid as restitution to current and former drivers who were underpaid by the companies.
The settlement ends the attorney general’s office’s multiyear litigation against Uber and Lyft, Campbell said. It also prevents the companies from trying to rewrite state labor law through a 2024 ballot measure, which would have resulted in drivers receiving inadequate protections and a wage standard that wouldn’t guarantee minimum wage.
“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 benefits for health care,” Campbell said in a statement. “I want to thank my team, whose hard work has ensured a level of dignity for every driver across the state, as well as our union allies and the drivers themselves for their tireless work and advocacy.”
In a statement Thursday, Uber said the settlement agreement “gives drivers access to new protections and benefits, including the nation’s first portable health insurance fund, while preserving their ability to work independently.”
“This agreement is an example of what independent, flexible and dignified work should look like in the 21st century. We’re excited to see more policymakers supporting portable benefits and innovative frameworks to improve independent work,” Uber said in its statement.
“By seizing this opportunity, we have solved historical problems by building a new operating model that balances both flexibility and benefits. This allows Uber and Massachusetts to move forward in a way that reflects what drivers want and shows other states what is possible to accomplish,” Uber said. “We hope to engage other policymakers, drivers, advocates and stakeholders around the world to develop similar solutions.” »
Gov. Maura Healey said in a statement that the lawsuit against Uber and Lyft “has always been about fairness for drivers.”
The agreement “provides historic wages and benefits to correct the wrongs of the past and ensure drivers are fairly compensated in the future,” Healey said.
“Thanks to Attorney General Campbell, Uber and Lyft’s free ride is over. This settlement includes a comprehensive package of high wages, benefits, and protections for the drivers these companies have exploited for years. We deeply appreciate AG Campbell’s hard work to hold these companies rightfully accountable to Massachusetts labor laws,” Massachusetts AFL-CIO President Chrissy Lynch said in a statement.
Thursday’s agreement provides for the following:
· Drivers receive a minimum of $32.50 per hour for time spent traveling to pick up passengers and drive them to their destination, adjusted annually for inflation.
· Drivers receive guaranteed paid sick leave, with one hour of sick leave for every 30 hours worked, up to a maximum of 40 hours per year. As part of the agreement, Uber and Lyft must update their driver apps so that drivers can view and request their sick leave directly in the app.
· Drivers receive a paid stipend to participate in the state’s Paid Family and Medical Leave program.
· Shared health insurance. For the first time, Uber and Lyft will allow drivers to pool their driving hours for both companies to access a health insurance benefit. Anyone driving more than 15 hours per week – for one or both companies – will be able to earn a health insurance benefit to pay for a Massachusetts Health Connector plan.
· Drivers are eligible for company-paid workers’ compensation insurance for up to $1 million in coverage for workplace injuries.
The agreement also includes the following provisions for Uber and Lyft:
· Provide drivers with information on trip duration, destination and expected earnings Before They are expected to accept a ride.
· Provide drivers with detailed information about their earnings and the amount paid by a passenger once the trip is completed.
· Do not discriminate against drivers based on race, religion, national origin, sex, sexual orientation, gender identity, disability or any other protected characteristic.
· May not retaliate against drivers who have or are perceived to have filed a complaint against the companies with the Attorney General’s Office or requested payment or other benefits under today’s settlement.
· Must offer drivers in-app chat support with a live person in English, Spanish, Portuguese and French.
· Must conduct an annual audit and provide detailed information on compliance with the terms of the settlement agreement to the Attorney General’s Office.
· Must provide drivers with information about why they were deactivated and create an appeals process for drivers to challenge the deactivation.
· Must provide the Attorney General’s Office with the information it needs to ensure compliance.
Drivers Demand Justice, a coalition that has organized thousands of rideshare drivers seeking union rights, applauded the settlement.
“Drivers will see improvements as a result of today’s settlement with rideshare companies, and we applaud Attorney General Campbell and her team for securing concessions from the companies. It is critical that drivers have a union to ensure these concessions are protected and improved,” Drivers Demand Justice said in its statement.
“The agreement once again highlights that drivers are chronically exploited by these companies and demonstrates the urgency of their need for a clear and immediate path to forming a union, so they can have a voice to promote their well-being and defend their rights. », Indicates the press release. “Rideshare drivers are calling on the Massachusetts Legislature to act quickly to grant union rights to drivers and, in doing so, improve the lives of tens of thousands of families in cities and towns across the Commonwealth.”
The coalition has proposed a bill – the Rideshare Driver Justice bill – in the legislature, and is also supporting a ballot question that would give drivers the right to form a union.
This is a developing story. Check back regularly for updates as more information becomes available.
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