Uber and Lyft to Implement Minimum Pay for Massachusetts Drivers: A Game-Changer for Gig Economy Workers
Money | June 28, 2024, 1:34 a.m.
Uber and Lyft have settled a lengthy legal battle in Massachusetts by agreeing to pay $175 million to their drivers while maintaining their classification as independent contractors. The settlement includes a minimum pay rate of $32.50 per hour for time spent on a ride, as well as benefits such as health insurance for drivers working at least 15 hours a week and expanded accident insurance. This marks a victory for gig workers in the state, who will receive most of the settlement money to compensate for violations of labor laws. Similar pay and benefit provisions have been enacted in other states, with Uber and Lyft facing opposition from workers and labor groups seeking fair compensation. The settlement underscores the ongoing battle between gig economy companies and their workers over pay and labor rights.