Uber and Lyft Agree to $175 Million Settlement with Massachusetts, Commit to Hourly Minimum Pay and Employee Benefits for Drivers
BOSTON — Uber Technologies and Lyft have settled a lawsuit with the Massachusetts Attorney General Andrea Joy Campbell, agreeing on Thursday to upgrade their drivers’ compensation and benefits in a significant shift away from their traditional business models. The companies will now implement a $32.50 hourly minimum wage for their Massachusetts drivers and will pay a combined $175 million to resolve claims they had misclassified workers as independent contractors. Under the terms of this landmark agreement, the rideshare giants will also introduce new benefits for drivers including paid sick leave, accident insurance, and healthcare stipends. … Read more