Uber and Lyft have reached a groundbreaking settlement with the attorney general in Massachusetts, ending a yearslong legal dispute over driver pay and benefits. The ride-hailing giants have agreed to pay $175 million to resolve claims of violating state labor laws, with the majority of the funds going towards improving conditions for gig workers.
One of the key provisions of the settlement is a minimum pay rate of $32.50 per hour for time spent on a ride, along with benefits such as a health insurance plan for drivers working at least 15 hours a week and expanded accident insurance. This marks a significant victory for gig workers in Massachusetts, who will now have access to basic benefits that were previously denied to them.
The lawsuit against Uber and Lyft was initially filed in 2020 by the former attorney general, Maura Healey. The current attorney general, Andrea Joy Campbell, hailed the agreement as a step towards holding the companies accountable and providing drivers with much-needed protections.
Both Uber and Lyft have expressed satisfaction with the settlement, emphasizing the importance of maintaining independent contractor status for their drivers. Uber’s chief legal officer, Tony West, described the agreement as a model for modern, flexible work with dignity, while Lyft’s executive vice president of driver experience, Jeremy Bird, highlighted the progress made in other states on similar issues.
By avoiding a potential ballot initiative fight over driver classification in November, Uber and Lyft have effectively resolved a contentious issue that has been the subject of intense debate and lobbying efforts. The settlement sets a precedent for other states grappling with the challenges of regulating the gig economy and ensuring fair treatment for workers.
