Uber and Lyft agree to pay drivers $32.50 per hour in Massachusetts settlement

FILE - A passerby walks past a sign offering directions to an Uber and Lyft ride pickup location at an airport, Feb. 9, 2021, in Boston. Drivers for Uber and Lyft will earn a minimum pay standard of $32.50 per hour under a settlement announced, Thursday, June 27, 2024, by Massachusetts Attorney General Andrea Campbell, a deal that also includes a suite of benefits and protections. – Drivers for Uber and Lyft will earn a minimum pay standard of $32.

“For years, these companies have underpaid their drivers and denied them basic benefits," Campbell said in a written statement. “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.”

“More importantly, it is a major victory in a multiyear campaign by Bay State drivers to secure their right to remain independent, while gaining access to new benefits,” the company said. Drivers will now earn one hour of sick day pay for every 30 hours worked, up to a maximum of 40 hours per year. As part of the agreement, Uber and Lyft must update their driver applications so drivers are able to view and claim their sick leave directly in the app. Drivers will also receive a stipend to buy into the state’s paid family and medical leave program.

The agreement also requires the companies to provide drivers with key information — about the length of a trip, the destination and expected earnings — before they are expected to accept a ride.

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