In a lawsuit filed by Massachusetts Attorney General Andrea Joy Campbell, drivers for Uber and Lyft have earned a minimum wage rate of $32.50 per hour. Included in the settlement of labor law violations charges is a $175 million payment made by the app ride businesses.
“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, for the very first time in Massachusetts, guaranteed minimum pay, paid sick leave, occupational accident insurance, and health care stipends,” Cambell stated.
According to Cambell’s office, Lyft will pay $27 million and Uber will pay $148 million.
She stated that current and previous drivers “who were underpaid by the companies” will receive the majority of that sum as compensation.
A statement from Uber stated, “In resolving a longstanding lawsuit in Massachusetts, we have reached an agreement with Attorney General Andrea Campbell that gives drivers access to new protections and benefits, including the nation’s first portable health insurance benefit fund, while preserving their ability to work independently.”
Governor Maura Healey of Massachusetts applauded Campbell for her successful lawsuit alleging violations of labor regulations.
“Our lawsuit against Uber and Lyft was always about fairness for drivers,” Healey stated. “I congratulate Attorney General Campbell and her team for securing this settlement that delivers historic wages and benefits to right the wrongs of the past and ensure drivers are paid fairly going forward.”
“This settlement includes a comprehensive package of strong wages, benefits and protections for the drivers that these corporations have been exploiting for years. We deeply appreciate AG Campbell’s hard work holding these corporations rightfully accountable to Massachusetts employment laws,” Lynch stated.
For employees who drive for Uber and Lyft, the settlement offers a number of benefits and labor safeguards.
They include provisions against racial discrimination by employers, a health insurance benefit, paid sick leave that is guaranteed, and obligations to give drivers more precise salary information. religion, nationality, gender identity, sex, sexual orientation, or disability.
Companies who have filed complaints with the Attorney General’s office or who have requested payment or benefits under the settlement are prohibited from taking adverse action against drivers as a result of the settlement.
