Mandatory $32 per Hour Payment Deemed Mandatory for Uber and Lyft Drivers in Massachusetts
Money | June 29, 2024, 2:24 p.m.
Rideshare drivers in Massachusetts are set to receive a significant boost in benefits and pay, thanks to a new settlement between the state and Uber and Lyft. Starting on August 15th, drivers will receive a minimum pay of $32.50 per hour, along with company-provided benefits. This comes four years after a lawsuit by Attorney General Andrea Campbell, who argued that rideshare drivers should be classified as employees. The settlement also includes a combined $175 million payout to current and former drivers who were underpaid by the companies. While drivers will still be considered independent contractors, they will now be eligible for yearly inflation-based pay raises, sick leave, stipends for healthcare, and coverage for work-related injuries. Details on eligibility and how to apply will be released soon. Overall, this agreement marks a significant step towards improving the working conditions and protections for rideshare drivers in Massachusetts.