Boston — Today, Attorney General Andrea Joy Campbell announced a historic settlement with Uber and Lyft, establishing a minimum pay standard of $32.50 per hour along with various benefits and protections for drivers. The companies will also pay a combined total of $175 million to the state to resolve allegations of violating Massachusetts wage and hour laws, with the majority of this amount being distributed to current and former drivers.
The settlement concludes multi-year litigation against Uber and Lyft and prevents them from attempting to alter state employment law through a 2024 ballot initiative that would have provided insufficient protections and earnings standards for drivers.
“For years, these companies have underpaid their drivers and denied them basic benefits. Today’s agreement holds Uber and Lyft accountable, and provides their drivers, for the very first time in Massachusetts, guaranteed minimum pay, paid sick leave, occupational accident insurance, and health care stipends,” said AG Campbell. “I want to thank my team, whose hard work has secured a standard of dignity for every driver across the state, and our labor allies and the drivers themselves for the tireless work and advocacy.”
Governor Maura Healey praised the settlement: “Our lawsuit against Uber and Lyft was always about fairness for drivers. I congratulate Attorney General Campbell and her team for securing this settlement that delivers historic wages and benefits to right the wrongs of the past and ensure drivers are paid fairly going forward.”
Massachusetts AFL-CIO President Chrissy Lynch commented on the outcome: “Thanks to Attorney General Campbell, Uber and Lyft’s free ride is over. This settlement includes a comprehensive package of strong wages, benefits, and protections for the drivers that these corporations have been exploiting for years. We deeply appreciate AG Campbell’s hard work holding these corporations rightfully accountable to Massachusetts employment laws.”
The agreement mandates several provisions:
- Drivers will receive a minimum of $32.50 per hour for time spent traveling to pick up riders and transporting them.
- Uber will pay $148 million while Lyft will contribute $27 million towards restitution.
- Drivers are entitled to paid sick leave.
- A stipend will be provided so that drivers can buy into the state's paid family medical leave program.
- Health insurance stipends will be available by pooling hours driven between both companies.
- Occupational accident insurance coverage up to $1 million will be provided.
Additional terms include:
- Information about trip length, destination, expected earnings before accepting rides must be provided.
- Detailed pay information post-trip must be disclosed.
- Non-discrimination based on race, religion or other protected characteristics is mandated.
- Retaliation against complaint-filing or benefit-seeking drivers is prohibited.
- In-app chat support in multiple languages must be offered.
- Annual audits ensuring compliance with settlement terms must be conducted.
The process includes mechanisms addressing violations by either company including court enforcement if non-compliance occurs.
This matter was managed by members of the Attorney General's Public Protection & Advocacy Bureau including Doug Martland among others.