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The rideshare drivers will receive guaranteed minimum pay of $32.50 per hour in addition to health care stipends and other benefits.
Uber Technologies and Lyft on Thursday agreed to adopt a $32.50 hourly minimum pay standard for Massachusetts drivers and pay $175 million to settle a lawsuit by the state’s attorney general alleging they improperly treated drivers as independent contractors who can legally receive lower compensation than employees.
The deal, which includes a $175 million settlement with the state, keeps the drivers classified as independent contractors, not employees.
Rideshare Companies Have Been Pushed to Raise Pay in States Across the Country Uber and Lyft have backed ballot measures across the country that improve driver pay but also enshrine their drivers as non-employees.
Uber and Lyft are now required to pay Massachusetts drivers a minimum of $32.50 per hour and will be paying $175 million in a settlement to the state after a multi-year litigation. The settlement comes after the companies were accused of violating Massachusetts wage and hour laws,
Uber and Lyft drivers have won a minimum pay rate of $32.50 per hour in an action brought by Massachusetts Attorney General Andrea Joy Campbell. It includes a $175 million payment Uber and Lyft.
Uber and Lyft drivers in Massachusetts will now earn a minimum of $32.50 an hour plus a range of benefits under a settlement announced Thursday. The rideshare companies will also be required to pay a combined $175 million to the state of Massachusetts to resolve allegations that they violated Massachusetts wage and hour laws,
Uber and Lyft have agreed to offer a minimum wage, paid sick leave and other benefits for drivers as part of a $175 million settlement resolving a multi-year legal battle with Massachusetts. The ride-hailing companies will be required to pay drivers a minimum of $32.
Uber and Lyft will pay Massachusetts drivers some of the highest guaranteed wages in the country under a landmark deal with state prosecutors.
Uber and Lyft will pay Massachusetts drivers some of the highest guaranteed wages in the country under a landmark deal with state prosecutors that also brought a halt to a years-long campaign seeking to rewrite how state law defines those workers.
Most of the settlement money will become restitution payments to current and former drivers, Campbell's office said. The companies also agreed to provide drivers at least $32.50 per hour for the time they spend traveling to pick up passengers and transporting them to their destination.