July 1st 2024.
Great news for Uber and Lyft drivers in Massachusetts as they are now set to receive a significant pay increase. As part of a $175 million settlement initiated by the state, the rideshare companies are required to offer benefits and implement a pay rate of $32.50 an hour for their contracted workers. This new regulation will take effect on August 15th, bringing some much-needed relief to the hardworking drivers.
The settlement comes after a four-year-long legal battle led by Massachusetts Attorney General Andrea Campbell, who sued Uber and Lyft for underpaying their drivers and denying them employee benefits. Finally, in June, the litigation was resolved, and the state has put in place new rules to ensure that these companies provide a livable wage to their independent contractors. AG Campbell referred to this as holding the rideshare giants "accountable" for the livelihoods of their drivers.
In a statement, AG Campbell acknowledged the efforts of her team and labor allies, as well as the drivers themselves, for their tireless work and advocacy. She also expressed her satisfaction with securing a standard of dignity for all drivers across the state. Under the settlement, Uber will pay the majority of the hefty sum, with $148 million going towards the drivers, while Lyft will pay $27 million. This money will be distributed among both current and former underpaid drivers.
In addition to the pay raise, drivers will also receive guaranteed paid sick leave, occupational accident insurance, and a health care stipend. They will also have the option to buy into the state's paid medical and family leave program, providing them with further security and support.
The state's governor, Maura Healey, also praised AG Campbell for her efforts in delivering a "historic" settlement that will significantly improve the lives of these employees. Healey stated that the lawsuit against Uber and Lyft was always about fairness for drivers, and this settlement is a major step towards achieving that.
Moreover, the settlement also includes provisions to protect drivers from retaliation or discrimination for filing complaints against the companies' practices. Uber and Lyft will also be required to conduct audits and ensure the proper implementation of these new policies, ensuring that drivers are treated fairly and with respect.
This news comes at a time when the rideshare industry is under scrutiny for its treatment of workers, with recent incidents raising concerns about driver safety and well-being. This settlement serves as a significant victory for these drivers and sets a precedent for fair treatment and compensation in the industry.
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