Uber It is Elevator drivers in Massachusetts will soon see an increase in their paychecks. According to the Associated pressthe state attorney general won a case that took The minimum wage hourly pay up to $32.50.
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Massachusetts Attorney General Andrea Campbell led the litigation on behalf of the state, which will receive $175 million in combined funds from Uber and Lyft. The AP reports that Campbell alleged that both companies violated the state’s labor and wage laws. A “substantial 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 settlement holds Uber and Lyft accountable and provides their drivers, for the first time in Massachusetts, with a guaranteed minimum wage, paid sick leave, workers’ compensation insurance, and health benefits.”
How will Massachusetts drivers benefit?
The agreement — announced Thursday (June 27) — also seeks other benefits and protections for drivers.
For example, drivers will now earn one hour of sick day pay for every 30 hours worked and will be able to track and claim their sick leave in their app. Both companies will also provide stipends to help drivers buy into the state’s paid family and medical leave program.
The new agreement will also provide benefits to drivers who work for both ride-sharing companies. For example, a driver who works 15 or more hours per week with Lyft, Uber, or both will be eligible for a health insurance subsidy to pay for a Massachusetts Health Connector.
Another benefit is allowing drivers to see important information like trip duration, destination, and expected earnings before accepting a ride. Additionally, companies should provide live in-app support for their drivers with speakers in English, Spanish, Portuguese, and French.
If either company deactivates a driver’s account, they must provide a reason and create an appeals process.
Uber and Lyft release statements on Massachusetts settlement
Both ride-hailing companies released statements following last week’s ruling. Uber acknowledged that the deal is “an example of what independent, flexible and dignified work should be like in the 21st century.”
The company also said: “By seizing this opportunity, we are addressing historic liabilities while building a new operating model that balances flexibility and benefits. This allows both Uber and Massachusetts to move forward in a way that reflects what drivers want and demonstrates to other states what is possible.”
Lyft also adopted the minimum wage terms, calling them a “historic” change. “to correct the mistakes of the past and ensure that drivers are paid fairly in the future.”
“More importantly, it’s a huge victory in a multi-year campaign by Bay State drivers to secure their right to remain independent while gaining access to new benefits,” Lyft shared.
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