$175M Uber and Lyft Settlement: Drivers to Receive $32.50 Hourly Minimum Wage During Rides
Money | June 27, 2024, 8:53 p.m.
The state prosecutors have reached a landmark settlement with Uber and Lyft in Massachusetts, requiring the companies to pay a total of $175 million, increase driver wages, and offer new benefits. The agreement resolves a lawsuit alleging violations of state labor laws, with Uber paying $148 million and Lyft paying $27 million in restitution to drivers. Drivers will now receive a minimum of $32.50 per hour for pick-up and drop-off times. Additionally, Uber and Lyft have agreed to stop campaigning for a ballot question that would define drivers as independent contractors. While the companies have confirmed their withdrawal from supporting the measure, it remains uncertain whether other backers like DoorDash and Instacart will push forward. This development marks a significant victory for workers' rights in the gig economy controversy.