Uber And Elevator Drivers in Massachusetts Will Soon See Their Pay Increase, According to Associated PressThe state attorney general won a case that increased the minimum wage to $32.50 per hour.
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Massachusetts Attorney General Andrea Campbell led the lawsuit 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 state wage and labor laws. A “significant portion” 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 agreement holds Uber and Lyft accountable and, for the first time in Massachusetts, provides their drivers with a guaranteed minimum wage, paid sick leave, workplace accident insurance, and health care benefits.”
How Will Massachusetts Drivers Benefit?
The agreement, announced on Thursday (June 27), also includes other benefits and protections for drivers.
For example, drivers will now receive one hour of sick pay for every 30 hours worked and will be able to track and request sick leave in their app. Both companies will also provide stipends to help drivers purchase the state’s paid family and medical leave program.
The new deal will also benefit drivers who work for both ride-sharing companies. For example, a driver who works 15 or more hours a week for Lyft, Uber, or both will be eligible for health insurance benefits to pay for the Massachusetts Health Connector.
Another benefit is the ability for drivers to see important information such as trip duration, destination, and expected earnings before accepting a ride. Additionally, companies should provide their drivers with live in-app support with native speakers in English, Spanish, Portuguese, and French.
If any company deactivates a driver’s account, they must inform the driver of the reason and create an appeal process.
Uber, Lyft Release Statements on Massachusetts Settlement
Both ride-sharing companies released statements following the ruling last week, with Uber acknowledging that the agreement “an example of what independent, flexible and rewarding work should look like in the 21st century.”
The company also said, “By seizing this opportunity, we have addressed historic challenges by building a new operating model that combines flexibility and value. This allows both Uber and Massachusetts to move forward in a way that reflects the desires of drivers and demonstrates to other states what is possible.”
Lyft also adopted minimum wage conditions, calling it a “historic” change “to correct the mistakes of the past and ensure fair pay for drivers in the future.”
“More importantly, this is a major victory in Bay State drivers’ years-long campaign to protect their right to remain independent while still gaining access to new benefits,” Lyft said in a statement.
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