close
close

What it means for drivers

Massachusetts Attorney General Andrea Campbell says her office has reached a settlement in the case against Uber and Lyft that guarantees a number of benefits and protections for drivers of those ride-sharing companies. Under the settlement, 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 stipend to buy into Massachusetts' paid family and medical leave program. The settlement also includes a shared health insurance benefit, where Uber and Lyft will allow drivers to pool their driving hours for the two companies to access a health insurance stipend. Uber and Lyft drivers will also be eligible for workers' compensation insurance paid by the companies, which provides up to $1 million in coverage for workplace 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 “significant majority” of that money will be paid out to drivers who currently work or have worked 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 with a guaranteed minimum wage, paid sick leave, workers' compensation insurance and health care subsidies for the first time ever in Massachusetts,” Campbell said in a statement. The agreement settled the lawsuit, which was 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 congratulate Attorney General Campbell and her team on this settlement, which 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 rideshare companies came just hours after Massachusetts' highest court, the Supreme Judicial Court, signed off on two ballot questions for this fall's election that would have decided whether Uber and Lyft drivers are considered employees or independent contractors in the state. “With the settlement of the case, the issues surrounding driver classification and benefits have been resolved, meaning the ballot measure is no longer immediately necessary,” Lyft said in a statement. Campbell said additional provisions in the agreement require Uber and Lyft to give drivers information about the length of a trip, 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 the amount a passenger paid after completing a trip. The agreement also outlines a process for addressing any violations by the two companies. It also includes a process for Uber and Lyft to refer any complaints from drivers to the Massachusetts Attorney General's Office. If they fail to comply, the court can enforce penalties for non-compliance. Click here to read a copy of the settlement.

Massachusetts Attorney General Andrea Campbell says her office has reached a settlement in its lawsuit against Uber and Lyft that provides a number of benefits and protections to drivers of these 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 and a stipend to buy into Massachusetts' paid family and medical leave program.

The agreement also includes a shared health insurance plan, where Uber and Lyft will allow their drivers to pool their driving hours for the two companies to qualify for one health insurance premium. Uber and Lyft drivers will also be eligible for workers' compensation insurance paid by the companies, covering up to $1 million for on-the-job injuries.

Campbell said Uber and Lyft will also pay a 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 paid to drivers who currently work or previously worked for the two ride-sharing 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 with a guaranteed minimum wage, paid sick leave, workers' compensation insurance and health care subsidies for the first time ever in Massachusetts,” Campbell said in a statement.

The settlement resolved the lawsuit, which was 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 congratulate Attorney General Campbell and her team on this settlement, which 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-sharing companies came just hours after Massachusetts' highest court, the Supreme Judicial Court, signed off on two ballot questions for this fall's election that would have decided whether Uber and Lyft drivers in the state are considered employees or independent contractors.

“With the settlement of the case, the issues surrounding driver classification and related benefits have been resolved, so the ballot measure is no longer immediately necessary,” Lyft said in a statement.

Campbell said additional provisions in the agreement require Uber and Lyft to give drivers information about the length of a ride, destination and expected earnings before accepting a ride. The companies are also required to give drivers detailed information about their earnings and how much a rider was paid after completing a ride.

The agreement also outlines a process for addressing any violations by both companies, including a process for Uber and Lyft to refer driver complaints to the Massachusetts Attorney General's Office. If the companies fail to comply, they can take legal action against the regulations.

Click here to read a copy of the agreement.

Anna Harden

Learn More →

Leave a Reply

Your email address will not be published. Required fields are marked *