Uber and Lyft Agree to $32.50 Hourly Minimum Pay for Massachusetts Drivers

Ride-sharing giants Uber and Lyft have settled a lawsuit with Massachusetts Attorney General Andrea Joy Campbell, agreeing to a $32.50 hourly minimum pay standard for drivers in the state. As part of the settlement, the companies will pay $175 million and provide drivers with benefits such as paid sick leave, accident insurance, and healthcare stipends.

They will also halt support for a ballot initiative that aimed to solidify drivers’ status as independent contractors. Uber and Lyft emphasized the balance between flexibility and benefits for drivers, with Uber agreeing to pay $148 million and Lyft $27 million. The agreement comes amidst ongoing legal proceedings regarding the employment status of gig workers in Massachusetts.