Uber and Lyft settled a years-long authorized dispute with the Massachusetts legal professional common on Thursday, agreeing to pay their drivers the state minimal with some advantages.
As a part of the settlement, Uber and Lyft can pay $175 million to resolve allegations that the businesses violated state labor legal guidelines, with many of the cash going to gig staff, state officers stated in an announcement. However in a win for the ride-hailing firms, drivers will proceed to be labeled as unbiased contractors slightly than workers.
Among the many advantages the state gained for gig staff had been a medical health insurance plan for drivers who work no less than 15 hours per week, an growth of accident insurance coverage and a $32.50-an-hour minimal wage for time spent on a experience.
The settlement follows comparable wage and advantages provisions enacted in New York, California, Washington state and, most just lately, Minnesota. Uber and Lyft have spent tens of hundreds of thousands of {dollars} lobbying native governments to counter efforts by staff and labor teams to boost driver wages.
“For years, these firms have underpaid their drivers and denied them important advantages,” stated Massachusetts Legal professional Basic Andrea Pleasure Campbell. “Right this moment’s settlement holds Uber and Lyft accountable and supplies their drivers, for the primary time in Massachusetts, a assured minimal wage, paid sick depart, occupational accident insurance coverage and well being care stipends.”
The lawsuit was in opposition to Uber and Lyft First introduction In 2020 by Maura Healey, former Legal professional Basic.
In separate statements, Uber and Lyft stated the settlement was a win for his or her drivers, and that sustaining unbiased contractor standing was vital for flexibility.
“This settlement is an instance of what unbiased, versatile, and dignified work ought to appear to be within the twenty first century,” Tony West, Uber’s chief authorized officer, stated in an announcement.
“We’re happy to have reached an settlement that works for everybody, constructing on comparable progress we have now made in states like New York, California, Minnesota and Washington,” stated Jeremy Chicken, Lyft’s government vp of driver expertise.
On account of the settlement, the 2 firms will keep away from a possible voting battle in Massachusetts over driver classification in November.
