Starting on August 15, rideshare drivers in Massachusetts will soon receive company-provided benefits, as well as a minimum wage of $32.50 an hour. That’s thanks to a new settlement between the state and ride-hailing companies Uber and Lyft, four years after Attorney General Andrea Campbell sued the companies, claiming their drivers were required to do so under state law. Considered an employee.
Campbell’s office announced yesterday that the companies also agreed to pay a total of $175 million, most of which will be paid to “current and former drivers who have been underpaid by the company.” The office said it would release details on who is eligible and how to apply “in the coming weeks.” Despite the settlement and the original intent of the lawsuit, the driver will still be considered an independent contractor.
Still, the state’s motorists will receive annual inflation-based raises and other employee-style benefits, such as up to 40 hours of sick leave per year at $20 an hour. Uber and Lyft will also provide stipends to drivers so they can purchase health care and participate in the state’s family and medical leave program, which covers workplace injuries.
To ensure compliance with the agreement, companies must conduct annual audits and submit reports to the Attorney General’s Office. Penalties for violations may include “any applicable restitution, fines and penalties,” according to the announced settlement.
