Uber And Lyft Drivers In Massachusetts Get A Raise And Benefits Including $32.50 Per Hour
Massachusetts Uber and Lyft drivers are getting some much-wanted benefits and protections thanks to Mass Attorney General Andrea Campbell’s office. Not only that, but Uber and Lyft will also pay the state a total of $175 million dollars, much of it to current and past drivers. Here’s everything you need to know.
Uber and Lyft Drivers Reach Settlement
Massachusetts Attorney General Andrea Campbell‘s office announced that they secured a settlement for Uber and Lyft drivers. Under the agreement, Uber and Lyft will pay their drivers a minimum wage of $32.50 an hour. They also agreed to give drivers paid sick leave, accident insurance, and healthcare stipends. There is also an agreement to stop funding or supporting a ballot initiative that would have asked voters in November to make driver’s status as contractors.
What Else Did Uber And Lyft Agree To?
The agreement also requires Uber and Lyft to pay a combined total of $175 million dollars to the state. Uber will pay $148 million, and Lyft will pay $27 million. The money is to resolve allegations that the companies violated the state’s wage and hour laws. Campbell’s office has alleged that the companies had improperly treated drivers as independent contractors who can legally receive lower compensation than employees. The majority of the money in the settlement will go to drivers who currently work for, or used to work for Uber and/or Lyft.
What AG Campbell Says About The Case
Massachusetts has 55,000 Uber drivers and 35,000 Lyft drivers. AG Campbell has been asking for them to be recognized as employees. Under state law, as employees, they would be entitled to benefits such as a minimum wage, overtime and earned sick time. Reports say that designating drivers as contractors as opposed to employees, cost companies as much as 30% less.
Campbell says, “For years, these companies have underpaid their drivers and denied them basic benefits.” Today’s agreement holds Uber and Lyft accountable.”
