Uber and Lyft have agreed to pay Massachusetts drivers a minimum wage of $32.50 per hour, implement paid sick leave and accident insurance, and provide health care stipends as part of a $175 million settlement to address longstanding worker exploitation claims.
Uber and Lyft Settle Landmark Agreement in Massachusetts with $175 Million Payout to Drivers for Minimum Wage and Benefits
According to The US Sun, Uber and Lyft have reached a major agreement in Massachusetts to improve conditions for their drivers. After a long legal battle led by Attorney General Andrea Campbell, both companies will now pay drivers a minimum wage of $32.50 per hour, starting from when they accept a ride until it ends. This settlement also includes paid sick leave, insurance for accidents at work, and money to help drivers buy health insurance, aiming to make their work safer and more secure.
The settlement totals nearly $175 million, split between Uber and Lyft, and includes payments to current and former drivers who were paid less because they were treated as independent contractors instead of employees. Massachusetts officials, including former Attorney General Maura Healey, see this as a win for fairness and worker rights. They say these changes will fix past problems and make sure drivers are paid fairly from now on. These new rules will start on August 15, setting a standard that other states might follow.
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$175 Million Settlement: Uber and Lyft Agree to Highest Minimum Wage in the US, $32.50 per Hour, for Massachusetts Drivers (PHOTO: UPI)
Uber and Lyft Executives Optimistic About Massachusetts Agreement Enhancing Driver Conditions and Setting Industry Precedent
Uber’s Tony West and Lyft’s Jeremy Bird are positive about the agreement, saying it balances flexibility for drivers with important benefits. They believe it shows how tech companies can follow rules while still running smoothly. Now, Massachusetts is getting ready to put these changes into action, which could lead to better working conditions for drivers and more discussions about how workers are treated in jobs like these.
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