Uber and Lyft drivers in Massachusetts have achieved a significant victory, resulting in health benefits and an improved hourly pay rate. The ride-hailing companies settled a lawsuit that accused them of mistreating drivers. Here are the key details:
Increased Hourly Pay Rate and Benefits
- Drivers will now receive $32.50 per hour, along with expanded accident insurance and health insurance plans for those working more than 15 hours a week.
- The settlement also includes a payment of $175 million to resolve the case, which was brought by Massachusetts Attorney General Andrea Campbell.
Ending Years of Litigation
- This settlement marks the end of a years-long legal battle between the state and the ride-hailing giants.
- It also prevents their attempt to rewrite state employment law through a proposed 2024 ballot initiative.
Statements from Officials and Companies
- Massachusetts Governor Maura Healey praised the settlement, emphasizing that it delivers historic wages and benefits to right past wrongs.
- Lyft stated that the agreement allows Bay State drivers to remain independent while gaining access to new benefits.
- Uber called it an example of dignified, flexible work in the 21st century, balancing both flexibility and benefits.
Sick Leave and Independent Contractor Status
- Drivers will now earn one hour of sick day pay for every 30 hours worked, up to a maximum of 40 hours per year.
- The companies had previously pushed for a ballot question that would classify drivers as independent contractors eligible for some benefits.
