Massachusetts Uber and Lyft Drivers Secure Major Victory: $32.50 per Hour and Benefits

In a groundbreaking settlement, Massachusetts Attorney General Andrea Campbell announced that Uber and Lyft drivers in the state will now earn a minimum of $32.50 per hour. This agreement, reached on June 27, 2024, also includes a comprehensive benefits package and resolves a long-standing lawsuit against the ride-hailing giants.

Key Elements of the Settlement:

1. Minimum Pay Rate: Drivers will receive at least $32.50 per hour for time spent driving to pick up riders and transporting them, with adjustments for inflation each year.
2. Benefits Package: The settlement introduces several benefits for drivers, including:

• Paid Sick Leave: Drivers earn one hour of sick pay for every 30 hours worked, up to a maximum of 40 hours per year.
• Health Insurance Stipend: Drivers working more than 15 hours per week can pool hours from both Uber and Lyft to qualify for health insurance stipends.
• Occupational Accident Insurance: Coverage of up to $1 million for work-related injuries.
• Paid Family and Medical Leave: A stipend to help drivers buy into the state’s paid family and medical leave program.

1. Restitution Payments: Uber and Lyft will pay a combined $175 million to the state. Most of this amount will be distributed as restitution to drivers who were previously underpaid.
2. Operational Changes: The companies must provide detailed trip information, including the length, destination, and expected earnings, before drivers accept a ride. They are also required to offer in-app support in multiple languages and cannot discriminate against drivers based on various protected identities.

Impact and Reactions:

Attorney General Campbell highlighted that this settlement ensures fairness and dignity for drivers, addressing years of underpayment and lack of benefits. Massachusetts Governor Maura Healey and labor leaders praised the settlement as a historic step forward in securing workers’ rights and ensuring drivers are paid fairly.