Uber and Lyft now required to pay Massachusetts rideshare drivers $32 an hour

Rideshare drivers successful Massachusetts volition soon get company-provided benefits, arsenic good arsenic a minimum wage of $32.50 per hour, starting connected August 15th. That’s acknowledgment to a new settlement betwixt the authorities and rideshare companies Uber and Lyft, 4 years aft Attorney General Andrea Campbell sued the companies, asserting their drivers ought to beryllium considered employees nether authorities law.

The 2 companies besides agreed to wage a combined $175 million, the bulk of which volition beryllium paid retired to “current and erstwhile drivers who were underpaid by the companies,” Campbell’s bureau announced yesterday. The bureau says it volition merchandise details astir who qualifies and however to use “in coming weeks.” Despite the colony and the archetypal thrust of the suit, drivers volition inactive beryllium considered autarkic contractors.

Still, drivers successful the authorities volition get yearly inflation-based wage raises and different employee-style benefits, specified arsenic being capable to gain up to 40 hours of sick permission a year, paid astatine $20 per hour. Uber and Lyft volition besides springiness drivers stipends truthful they tin bargain healthcare and motion up for the state’s household and aesculapian permission program, and volition screen work-related injuries.

To guarantee they’re complying with the agreement, the companies person to transportation retired yearly audits and taxable reports to the Attorney General’s office. Punishment for violations could see “any applicable restitution, fines, and penalties,” according to the published settlement.

The rideshare companies person mostly avoided being regulated this mode successful California aft successfully persuading voters determination to walk a 2020 instrumentality that exempted businesses from being required to dainty gig workers arsenic employees; that’s been winding its way through authorities courts. The Massachusetts colony accounts for that, requiring them to halt supporting a akin ballot inaugural campaign. DoorDash and Instacart person besides said they’re backing off, according to section reporting by WBUR.