In AG's $175M Uber, Lyft settlement, companies to now pay drivers $32.50 hourly min. wage during rides
Why did gig economy companies suspend their ballot campaign?
Gig economy companies suspended their ballot campaign due to a landmark settlement with Massachusetts Attorney General Andrea Campbell. The $175 million settlement requires Uber and Lyft to pay drivers a minimum wage of $32.50 per hour during rides and provide benefits such as paid sick leave and health care stipends, while allowing the companies to continue classifying drivers as independent contractors. This settlement prompted the companies to suspend their campaign for a ballot question that would have defined drivers as independent contractors instead of employees.
When do the new wage regulations for drivers begin?
The new wage regulations for drivers in Massachusetts will begin on August 15, 2024, as part of the $175 million settlement with Uber and Lyft. The companies must pay their drivers at least $32.50 per hour when they are either en route to pick up passengers or actively transporting riders to a location.
How much will Uber and Lyft pay Massachusetts in settlement?
Uber and Lyft will pay a combined total of $175 million to Massachusetts to resolve allegations that the companies violated state wage and hour laws4. This settlement requires the companies to pay drivers a minimum pay standard of $32.50 per hour and provide them with a suite of benefits and protections.