Uber, Lyft reach settlement in Massachusetts case, ending ballot initiative

Uber AND Lift agreed to a settlement with Massachusetts Office of the Attorney Generalresolving the bureau’s long-running dispute against ride-sharing companies.

The settlement includes rules on wages, benefits and protection for drivers, the office said on Thursday (June 27). press release. It also ends with A referendum initiative regarding state labor laws that supported Uber and Lyft.

The investigation focused on allegations that the companies violated state wage and hour laws, according to the release.

“For years, these companies have underpaid their drivers and denied them basic benefits,” the attorney general said Andrea Joy Campbell said in a statement. “Today’s agreement holds Uber and Lyft accountable and ensures their drivers, Very for the first time in Massachusetts: a guaranteed minimum wage, paid sick leave, occupational injury insurance, and health care stipends.”

This a lawsuit was filed in 2020 by Campbell’s predecessor, Maury Healey, who is Now governor from Massachusetts.

According to the settlement agreementdrivers will be paid at least $32.50 per hour for time spent traveling to pick up passengers and transport them to their destination; guaranteed paid sick leave; a paid stipend to purchase the Massachusetts Paid Family and Medical Leave program; a total health insurance benefit that covers hours spent driving for one or both ridesharing companies; and eligibility for insurance against accidents at work, according to the announcement.

In addition, Uber will pay $148 million and Lyft will pay $27 million, with most of that money distributed as compensation to drivers — both current and former — who were underpaid by the companies, the release said.

Uber said Thursday press release that the settlement provides Massachusetts drivers with flexibility and benefits while maintaining their ability to work independently, and that the company hopes to reach similar agreements with policymakers Around the World.

“This agreement is an example of what independent, flexible and dignified work should look like in the 21st century” – Uber Chief Legal Officer Tony West he said in a statement. “We are excited to see more policymakers supporting portable benefits and innovative frameworks to improve independent working.”

Lyft announced on Thursday press release that the deal gives drivers the flexibility they currently enjoy and some, but not all, of the benefits workers would receive. She added that 35,000 drivers in Massachusetts use ridesharing to supplement their income.

“We are excited to reach an agreement that will work for everyone and build on similar progress we have made in states like New York, California, Minnesota and Washington.” Jeremy Birdexecutive vice president of driver experience at Lyft, said in a release.