Uber and Lyft settle with Massachusetts AG, agree to pay drivers $32.50 per hour

In a groundbreaking development, drivers for ride-hailing giants Uber and Lyft in Massachusetts will now receive a minimum pay standard of $32.50 per hour, along with a comprehensive package of benefits and protections. This significant settlement was announced by Massachusetts Attorney General Andrea Campbell, marking the end of a lengthy legal battle against the companies and thwarting their efforts to alter state employment laws through a proposed 2024 ballot initiative. Campbell emphasized that this agreement holds Uber and Lyft accountable for years of underpaying drivers and denying them essential benefits, ensuring for the first time in Massachusetts guaranteed minimum pay, paid sick leave, occupational accident insurance, and health care stipends. Governor Maura Healey hailed the settlement as a milestone achievement, delivering historic wages and benefits to rectify past injustices and establish fair compensation for drivers moving forward. The agreement is seen as a major triumph for Bay State drivers who have campaigned for years to maintain their independence while gaining access to new benefits. Uber echoed this sentiment, describing the deal as a model of dignified, flexible work in the modern era, emphasizing the resolution of past liabilities and the creation of a new operational framework that balances flexibility with benefits, setting a precedent for other states to follow. The companies' push for a ballot question that would classify drivers as independent contractors eligible for certain benefits has been halted by the settlement. Additionally, under the terms of the agreement, Uber and Lyft will enable drivers to combine their hours worked for both platforms to qualify for a health insurance stipend. Drivers working more than 15 hours per week for either or both companies will be eligible for this stipend to cover a plan on the Massachusetts Health Connector. The deal also mandates that drivers receive essential trip information before accepting rides, access in-app chat support in multiple languages, and clear explanations for deactivation with an appeals process in place.