Big announcement from Uber and Massachusetts. Uber and The State of Massachusetts agreed on new standards for gig workers, balancing flexibility with crucial protections.
Starting March 2025, drivers averaging 15+ hours weekly get a health insurance stipend. A $32.50/hr minimum wage guarantee kicks in Aug 15, ensuring fair pay. Plus, occupational accident insurance from Oct 1 and paid sick leave from Nov 1, according to a statement from Uber.
Massachusetts and Uber have reached an agreement to improve working conditions for drivers, putting an end to a long legal battle. The agreement aims to offer drivers the necessary protections while preserving the flexibility they seek.
The agreement provides for the creation of a portable health insurance fund, a national first, which will come into effect in March 2025. Drivers who work an average of at least 15 hours a week will be eligible for a cash allowance to cover the cost of qualifying health insurance. Those working more than 25 hours a week will be entitled to a full allowance, while those between 15 and 25 hours will receive a half allowance.
As of August 15, every driver in Massachusetts will benefit from a minimum earnings guarantee of $32.50 per hour for time spent en route to pick-up and during the ride. This guarantee will be applied over a two-week period, ensuring stable revenues while keeping fares affordable for users, a standard already adopted in California, New York and Minnesota.
Uber will also provide workers’ compensation insurance from October 1, covering up to $1,000,000 for medical expenses and disability benefits in the event of injury while driving on the platform.
From November 1, drivers will accumulate paid sick leave, offering one hour of paid time off for every 30 hours spent on the road or with a passenger. In addition, starting October 1, all drivers will be eligible for help enrolling in the state’s paid family medical leave insurance program.
Every driver in Massachusetts will continue to be able to appeal account deactivations via Uber’s Deactivation Review Center, ensuring a fair and transparent process.
Finally, starting next year, Uber will offer multilingual chat support in English, Spanish, French and Portuguese to better support its drivers.
This agreement marks a significant step towards a fairer and more dignified model of self-employment in the 21st century. It demonstrates Uber’s and Massachusetts’ commitment to balancing flexibility and benefits, setting an inspiring example for other states and industry players.
This resolution ends Massachusetts’ long-running lawsuit against Uber, marking a new era of cooperation and progress in the service economy.