Rideshare drivers in Massachusetts will soon receive company-provided benefits, as well as a minimum wage of $32.50 per hour, starting August 15. That's thanks to a new settlement between the state and ride-sharing companies Uber and Lyft, four years after Attorney General Andrea Campbell sued the companies, claiming their drivers should be considered employees under state law.
The two companies also agreed to pay a combined total of $175 million, most of which will be paid to “current and former drivers who were underpaid by the companies.” Campbell's office announced yesterdayThe office says it will release details about who qualifies and how to apply “in the coming weeks.” Despite the settlement and the original purpose of the lawsuit, the drivers will still be considered independent contractors.
Still, drivers in the state will receive annual pay increases based on inflation and other employee-like benefits, such as the ability to earn up to 40 hours of sick leave a year, paid at $20 an hour. Uber and Lyft will also give drivers stipends so they can purchase health care and enroll in the state’s family and medical leave program, and will cover work-related injuries.
To ensure they comply with the agreement, companies must conduct annual audits and submit reports to the Attorney General's Office. Penalties for violations could include “any applicable restitution, fines, and penalties.” according to the published agreement.
