(VitalNews.org) – Massachusetts Attorney General Andrea Campbell announced that Uber and Lyft drivers will earn a minimum pay of thirty-two dollars and fifty cents per hour after the settlement.
Both Lyft and Uber will also resolve allegations that the companies violated Massachusetts wage and hour laws by paying one hundred and seventy-five million dollars to the state. The majority of this money will be distributed between drivers, both former and current. Campbell said that this settlement resolves a yearslong litigation against both companies. Not only this, but it would remove their attempt to rewrite state employment laws that would not put adequate protections or an earning standard for the drivers.
According to Campbell, “For years, these companies have underpaid their drivers and denied them basic benefits.”
She continued, “Today’s agreement holds Uber and Lyft accountable, and provides their drivers, for the very first time in Massachusetts, guaranteed minimum pay, paid sick leave, occupational accident insurance, and health care stipends.”
Lyft said in a statement that the agreement resolves a recent lawsuit. “More importantly, it is a major victory in a multiyear campaign by Bay State drivers to secure their right to remain independent, while gaining access to new benefits,” Lyft said.
Uber also spoke out on the situation by saying: “In taking this opportunity, we’ve resolved historical liabilities by constructing a new operating model that balances both flexibility and benefits.” They continued, “This allows both Uber and Massachusetts to move forward in a way that reflects what drivers want and demonstrates to other states what’s possible to achieve.”
Along with the wage increase, employees will also have one hour of sick pay for every thirty hours worked. They will also be updating this in the app so that employees are able to see and use sick pay directly through the app. Other benefits include health insurance opportunities and the opportunity to take advantage of paid family or medical leave.
The settlement continues to state that drivers would gain access to key information about the job, such as the length of a trip, destination, and expected earnings all before they accept the ride. They will also be granted access to occupational accident insurance opportunities.
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