Uber and Lyft settled a yearslong authorized dispute with the legal professional basic in Massachusetts on Thursday, agreeing to pay their drivers within the state a minimal price with some advantages.
As a part of the settlement, Uber and Lyft can pay $175 million to resolve claims that the businesses violated state labor legal guidelines, with a lot of the cash to be distributed to gig employees, state officers mentioned in a press release. However in a win for the ride-hailing corporations, drivers will proceed to be categorized as unbiased contractors and never workers.
Among the many advantages that the state received for its gig employees had been a medical health insurance plan for drivers working not less than 15 hours every week, expanded accident insurance coverage and a minimal pay price of $32.50 per hour for time spent on a trip.
The settlement adopted comparable pay and profit provisions enacted in New York, California, Washington State and most just lately Minnesota. Uber and Lyft have spent tens of thousands and thousands of {dollars} on native authorities lobbying towards efforts by employees and labor teams to extend driver pay.
“For years, these corporations have underpaid their drivers and denied them fundamental advantages,” mentioned Andrea Pleasure Campbell, the legal professional basic of Massachusetts. “In the present day’s settlement holds Uber and Lyft accountable, and offers their drivers, for the very first time in Massachusetts, assured minimal pay, paid sick go away, occupational accident insurance coverage and well being care stipends.”
The lawsuit towards Uber and Lyft was first filed in 2020 by Maura Healey, the earlier legal professional basic.
In separate statements, Uber and Lyft mentioned that the settlement was a win for his or her drivers, and that sustaining unbiased contractor standing was necessary for flexibility.
“This settlement is an instance of what unbiased, versatile work with dignity ought to appear to be within the twenty first century,” Tony West, Uber’s chief authorized officer, mentioned in a press release.
“We’re thrilled to succeed in an settlement that works for everybody, and builds on comparable progress we’ve made in states like New York, California, Minnesota and Washington,” mentioned Jeremy Chicken, Lyft’s government vp of driver expertise.
Because of the settlement, each corporations will keep away from a possible Massachusetts poll initiative combat over driver classification in November.
