Uber, Lyft Drivers to Get $32.50 Per Hour in State Settlement

Drivers in Massachusetts will also get new benefits, protections
By Newser Editors and Wire Services
Posted Jun 28, 2024 3:35 AM CDT
Uber, Lyft to Pay Massachusetts Drivers $32.50 Per Hour
A sign offering directions to an Uber and Lyft ride pickup location at an airport in Boston.   (AP Photo/Steven Senne, File)

Drivers for Uber and Lyft will earn a minimum pay standard of $32.50 per hour under a settlement announced Thursday by Massachusetts Attorney General Andrea Campbell, in a deal that also includes a suite of benefits and protections. The two companies will also be required to pay a combined $175 million to the state to resolve allegations that the companies violated Massachusetts wage and hour laws, a substantial majority of which will be distributed to current and former drivers, the AP reports.

  • Campbell said the settlement resolves her office's yearslong litigation against the two companies and stops the threat of their attempt to rewrite state employment law by a proposed 2024 ballot initiative. That question would have resulted in drivers receiving inadequate protections and an earnings standard that would not guarantee minimum wage, she said.

  • "For years, these companies have underpaid their drivers and denied them basic benefits," Campbell said in a statement. "Today's agreement holds Uber and Lyft accountable, and provides their drivers, for the very first time in Massachusetts, guaranteed minimum pay, paid sick leave, occupational accident insurance, and health care stipends."
  • The companies were pushing a ballot question that would classify drivers as independent contractors eligible for some benefits, but Campbell said the settlement stops the threat of the ballot question. A competing ballot question seeks to give drivers the right to unionize in Massachusetts.
  • Drivers will now earn one hour of sick pay for every 30 hours worked, up to a maximum of 40 hours per year. As part of the agreement, Uber and Lyft must update their driver apps so drivers are able to view and claim their sick leave directly in the app. Drivers will also receive a stipend to buy into the state's paid family and medical leave program.
(More ride sharing stories.)

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