Uber and Lyft must pay Massachusetts rideshare drivers $32 an hour

Rideshare drivers in Massachusetts will quickly get company-provided advantages, in addition to a minimal pay of $32.50 per hour, beginning on August fifteenth. That’s due to a brand new settlement between the state and rideshare firms Uber and Lyft, 4 years after Attorney General Andrea Campbell sued the businesses, asserting their drivers should be thought of workers beneath state regulation.

The two firms additionally agreed to pay a mixed $175 million, the majority of which will likely be paid out to “current and former drivers who were underpaid by the companies,” Campbell’s workplace introduced yesterday. The workplace says it should launch particulars about who qualifies and find out how to apply “in coming weeks.” Despite the settlement and the unique thrust of the swimsuit, drivers will nonetheless be thought of impartial contractors.

Still, drivers within the state will get yearly inflation-based pay raises and different employee-style advantages, resembling with the ability to earn as much as 40 hours of sick go away a yr, paid at $20 per hour. Uber and Lyft will even give drivers stipends to allow them to purchase healthcare and join the state’s household and medical go away program, and will cowl work-related accidents.

To guarantee they’re complying with the settlement, the businesses have to hold out annual audits and submit reviews to the Attorney General’s workplace. Punishment for violations may embody “any applicable restitution, fines, and penalties,” in response to the revealed settlement.