Uber And Lyft Agree To Worker Benefits, Settle State Lawsuit
Massachusetts Attorney General Andrea Joy Campbell announced a landmark settlement with Uber Technologies Inc. (NYSE:UBER) and Lyft Inc. (NASDAQ:LYFT) to secure a minimum pay standard of $32.50 per hour and additional benefits for drivers.
The companies will also pay $175 million to settle allegations of violating Massachusetts wage and hour laws, with most funds distributed to current and former drivers.
This resolution concludes a multi-year litigation against Uber and Lyft and prevents the companies from attempting to alter state employment law through a 2024 ballot initiative.
The agreement mandates a minimum of $32.50 per hour for drivers, with annual adjustments for inflation, marking the first time Massachusetts drivers will have guaranteed minimum pay.
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Uber will pay $148 million and Lyft $27 million, primarily as restitution to underpaid drivers.
Drivers will earn paid sick leave, receive a stipend for the state’s paid family and medical leave program, and gain access to pooled health insurance benefits.
Those driving over 15 hours weekly for either company can earn a health insurance stipend for plans on the Massachusetts Health Connector.
Occupational accident insurance up to $1 million will cover work-related injuries. The settlement also ensures non-discrimination based on race, religion, national origin, sex, sexual orientation, gender identity, disability, or other protected characteristics.
Uber and Lyft must provide detailed trip information and expected earnings before ride acceptance, offer in-app chat support in multiple languages, and maintain transparency about driver deactivation reasons.
Also Read: Uber Drivers: Employees Or Contractors? California Court Deals Blow To Gig Economy
Price Action: Uber shares are trading higher by 0.51% at $70.70 in premarket at last check Friday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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