Massachusetts Attorney General Andrea Campbell says her office has secured a settlement in its case against Uber and Lyft that provides a number of benefits and protections for drivers who work for those ride-sharing companies. Under the agreement, Uber and Lyft will pay their drivers a minimum wage of $32.50 an hour. Drivers will also receive guaranteed paid sick leave, as well as a pay-to-buy in Massachusetts paid sick leave program. The deal also includes a pooled health insurance benefit, in which Uber and Lyft will allow drivers to pool their driving hours so the two companies have access to a health insurance payout. Uber and Lyft drivers are also eligible for workplace 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 total of $175 million in Massachusetts for resolve claims that the company violated state wage and hour laws. The attorney general also said a “substantial bulk” of that money will be distributed to drivers who currently work or have worked for the two ride-sharing companies. “For years, these companies have underpaid their drivers. and denied basic benefits. Today’s settlement holds Uber and Lyft accountable and provides their drivers, for the first time in Massachusetts, with guaranteed minimum wage, paid sick leave, workplace accident insurance and paid health care. Campbell said in a statement. The settlement settled the lawsuit first filed in July 2020 by former Attorney General Maura Healey, who is now the governor of Massachusetts. “Our lawsuit against Uber and Lyft was always about justice for drivers,” Healey said in a statement. “I commend Attorney General Campbell and her team for securing this landmark wage and benefits settlement to right the wrongs of the past and ensure drivers are paid fairly moving forward.” 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 determine whether Uber and Lyft drivers in the state are considered employees or independent contractors.” With the settlement of the case, the issues about driver classification and benefits have been resolved, meaning there is no longer an urgent need for the ballot measure,” Lyft said in a statement. Campbell said additional provisions in the agreement dictate that Uber and Lyft provide drivers with information about the duration of a trip, destination and expected earnings before they are expected to accept a trip. Companies are also required to provide drivers with detailed salary information about their earnings and how much a rider has paid after a ride ends. The agreement also details a process to address any violations by each 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 do not comply. Click here to read a copy of the agreement.
Massachusetts Attorney General Andrea Campbell says her office has secured a settlement in its case against Uber and Lyft that provides 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 an hour. Drivers will also receive guaranteed paid sick leave as well as a pay-to-buy in the Massachusetts Paid Family and Medical Leave program.
The deal also includes a bundled health insurance benefit, in which Uber and Lyft will allow drivers to pool their driving hours for the two companies to get access to a health insurance payout. Uber and Lyft drivers are also eligible for company-paid workplace accident insurance of up to $1 million in coverage for work-related injuries.
Campbell said Uber and Lyft will also pay a total of $175 million to Massachusetts to settle allegations that the company violated the state’s wage and hour laws. The attorney general also said a “substantial bulk” of that money will be distributed to drivers who currently work or have worked for the two joint ventures.
“For years, these companies have underpaid their drivers and denied them basic benefits. Today’s settlement holds Uber and Lyft accountable and provides their drivers, for the first time in Massachusetts, with a guaranteed minimum wage , paid sick leave, occupational accident insurance and health care stipends,” Campbell said in a statement.
The settlement settled the lawsuit originally filed in July 2020 by former Attorney General Maura Healey, who is now the governor of Massachusetts.
“Our lawsuit against Uber and Lyft was always about justice for drivers,” Healey said in a statement. “I commend Attorney General Campbell and her team for securing this landmark wage and benefits settlement 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 ride-sharing 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 determine whether Uber and Lyft were drivers in the state. are considered employees or independent contractors.
“With the resolution of the case, the issues surrounding driver classification and benefits are resolved, meaning there is no longer an immediate need for the ballot measure,” Lyft said in a statement.
Campbell said additional provisions in the agreement dictate that Uber and Lyft provide drivers with information about a ride’s duration, destination and expected earnings before they are expected to accept a ride. Companies are also required to provide drivers with detailed payment information about their earnings and how much a rider has paid after a ride ends.
The agreement also details a process to address any violations by each 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 do not comply.
Click here to read a copy of the resolution.