WASHINGTON (dpa-AFX) - Rideshare and delivery network companies Uber
Technologies, Inc. and Lyft, Inc. have agreed to a minimum pay standard of
$32.50 per hour to its drivers, in a lawsuit settlement with Massachusetts
Attorney General. The drivers are also entitled to a suite of benefits and
protections.

The companies also agreed to pay a combined total of $175 million to the state
to resolve allegations that they violated Massachusetts wage and hour laws. A
substantial majority of the settlement payment would be distributed to current
and former drivers. In the combined amount, Uber said it will pay $148 million,
while Lyft will pay $27 million.

In a statement, AG Andrea Joy Campbell announced that her Office has secured the
historic settlement in the case, which was filed in 2020 seeking a determination
to consider Uber and Lyft drivers to basic benefits and protections.

Starting August 15, each Massachusetts driver will be guaranteed minimum
earnings of $32.50 per hour for time spent on the way to the pickup and during a
ride.

Further, starting in March 2025, drivers who average at least 15 hours en route
to pick up or with a passenger per week in a quarter, combining time spent
driving with Uber and/or Lyft, will receive a cash stipend towards the cost of a
qualifying health plan. Qualifying drivers averaging at least 25 hours per week
between the two companies will be eligible for a full stipend.

The companies will provide occupational accident insurance at no cost to
drivers. This insurance will provide drivers with $1 million in coverage for
medical expenses, as well as disability payments if they are injured while
driving on the platform and are unable to continue working. Coverage will begin
October 1.

Beginning November 1, drivers will accrue a bank of paid sick leave at a rate of
1 hour of sick pay for every 30 hours spent en route or with a passenger in the
vehicle, up to a maximum of 40 hours per year. As part of the deal, Uber and
Lyft are required to update their driver applications so drivers are able to
view and claim their sick leave directly in the app.

In addition, starting October 1, all drivers will be eligible for a quarter-end
payment equal to half the cost of enrolling in the state's Paid Family Medical
Leave insurance program.

The Office said the settlement resolves its multi-year litigation against Uber
and Lyft, which were attempting to rewrite state employment law through a 2024
ballot initiative. If successful, the change would have resulted in drivers
receiving inadequate protections and an earnings standard that would not
guarantee minimum wage.

AG Campbell said, '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.'



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