Above And Lyft Drivers in Massachusetts will soon be able to look forward to a pay raise. According to the Associated Press, the state's attorney general won a case that raised the hourly minimum wage to $32.50.
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Massachusetts Attorney General Andrea Campbell led the lawsuit on behalf of the state, which will receive a total of $175 million from Uber and Lyft. According to AP, Campbell claims both companies violated the state's wage and labor laws. A “significant majority” of the multimillion-dollar settlement will end up in the pockets of current and former drivers.
“For years, these companies have underpaid their drivers and denied them basic benefits,” Attorney General Campbell said in a statement. “Today's agreement holds Uber and Lyft accountable and provides their drivers with a guaranteed minimum wage, paid sick leave, workers' compensation insurance and health care subsidies for the first time ever in Massachusetts.”
What are the benefits for drivers in Massachusetts?
The agreement announced on Thursday (June 27) also targets other benefits and protections for drivers.
For example, drivers will now receive one hour of sick pay for every 30 hours worked and can track and request their sick leave in their app. Both companies will also provide drivers with stipends to help them qualify for the state's paid family and medical leave program.
The new agreement also benefits drivers who work for both rideshare companies. For example, a driver who works 15 or more hours per week for Lyft, Uber, or both will be eligible for a health insurance stipend to help fund a Massachusetts Health Connector.
Another benefit is that drivers can see important information such as ride duration, destination and estimated earnings before accepting a ride. In addition, companies must provide their drivers with live in-app support in English, Spanish, Portuguese and French.
If one of the companies deactivates a driver's account, it must inform the driver of the reason and initiate an appeal process.
Uber and Lyft release statements on Massachusetts settlement
Both rideshare companies released statements following last week's ruling. Uber acknowledged that the agreement “an example of what independent, flexible and dignified work should look like in the 21st century.”
The company also said, “By seizing this opportunity, we have repaid historic liabilities by developing a new operating model that balances flexibility and benefits. This allows both Uber and Massachusetts to move forward in a way that meets drivers' desires and shows other states what can be accomplished.”
Lyft also welcomed the minimum wage conditions and called them a “historic” change for “Correct the mistakes of the past and ensure that drivers are paid fairly in the future.”
“More importantly, this is a major victory in a multi-year campaign by Massachusetts drivers to secure their right to independence while maintaining access to new benefits,” Lyft said.
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