The Massachusetts Attorney General’s office has provided more details about the settlement with Uber and Lyft. Former and/or current drivers may receive more than $140 million.
Attorney General Andrea Joy Campbell’s office announced a groundbreaking agreement with Uber and Lyft, imposing a minimum wage of $32.50 per hour and a comprehensive package of benefits and protections for drivers.
The agreement also requires Uber and Lyft to pay a combined total of $175 million to the state, in response to allegations that they violated Massachusetts wage and hour laws. A large portion of this amount will be distributed to current and former drivers.
The settlement ends multi-year litigation against Uber and Lyft and prevents the companies from attempting to change the state’s labor laws through a ballot initiative in 2024. The initiative would have provided drivers with insufficient protections and a compensation standard that did not guarantee a minimum wage, according to a complaint filed by the state of Massachusetts against “Rideshares” companies Uber and Lyft.
“For years, these companies have underpaid their drivers and denied them basic benefits. Today’s settlement holds Uber and Lyft accountable and provides their drivers, for the first time ever in Massachusetts, with a guaranteed minimum wage, paid sick leave, workers’ compensation insurance and health care benefits,” said Attorney General Campbell. “I want to thank my team, whose hard work has ensured a standard of dignity for every driver across the state, as well as our union allies and the drivers themselves for their tireless work and advocacy.”
Governor Maura Healey commended the Attorney General’s office, saying, “Our legal action against Uber and Lyft has always been about fairness for drivers. I commend Attorney General Campbell and her team for securing this agreement that provides historic wages and benefits to right the wrongs of the past and ensure that drivers will be paid fairly in the future.”
Massachusetts AFL-CIO President Chrissy Lynch also praised the agreement, saying, “Thanks to Attorney General Campbell, Uber and Lyft’s free ride is over. This settlement includes a comprehensive package of strong wages, benefits and protections for the drivers that these corporations have been exploiting for years. We deeply appreciate AG Campbell’s hard work holding these corporations rightfully accountable to Massachusetts employment laws,” said Chrissy Lynch, president of the Massachusetts AFL-CIO.
The settlement includes the following key provisions:
1. Guaranteed minimum wage:
Drivers will receive a minimum of $32.50 per hour for time spent traveling to pick up passengers and transport them to their destination. This amount will be adjusted annually for inflation to ensure Massachusetts Uber and Lyft drivers receive a fair minimum wage.
2. Restitution payments:
Uber will pay $148 million and Lyft $27 million, for a combined total of $175 million. Most of this will be distributed as restitution to current and former drivers who were underpaid by the companies. The Attorney General’s office will provide further information on who is eligible for these payments and how to file a claim in the coming weeks.
3.paid sick leave:
Drivers will earn one hour of sick leave for every 30 hours worked, up to a maximum of 40 hours per year. Uber and Lyft must update their driver apps to allow drivers to view and claim sick leave directly in the app.
4. Family and medical leave:
Drivers will receive a paid stipend to participate in the state’s paid family and medical leave program.
5.Health insurance benefit:
For the first time, Uber and Lyft will allow drivers to pool their driving hours for both companies to access a health insurance allowance. Drivers who work more than 15 hours a week for either or both companies will be eligible for a health insurance allowance to pay for a plan on the Massachusetts Health Connector.
6. Workers’ compensation insurance:
Drivers will be eligible for company-paid workers’ compensation insurance, offering up to $1 million in coverage for work-related injuries.
The agreement also includes several provisions to ensure fair treatment and transparency for drivers :
– Trip information:
Drivers will receive information on journey time, destination and expected earnings before accepting a ride.
– Revenue transparency:
Drivers will receive detailed information about their remuneration and the amount paid by the passenger once the ride is completed.
– Anti-discrimination:
Uber and Lyft cannot discriminate against drivers on the basis of race, religion, national origin, gender, sexual orientation, gender identity, disability or other protected characteristics.
-Non-retaliation:
Companies may not retaliate against drivers who have filed a complaint with the Attorney General’s Office or who have sought payment or benefits as part of the settlement.
In-app support:
Uber and Lyft must offer in-app chat support with a live person in English, Spanish, Portuguese and French.
-Compliance audits:
Companies must conduct an annual audit and provide the Attorney General’s office with detailed information on compliance with the terms of the settlement.
-Deactivation calls:
Drivers will receive information on why they have been deactivated and will have an appeals procedure to contest the deactivation.
-Oversight by the Attorney General’s Office:
Uber and Lyft must provide the Attorney General’s office with the information necessary to ensure compliance with the agreement.
-Process for handling violations:
The agreement provides a process for handling violations by either company, including a procedure for the companies to address driver complaints to the Attorney General’s office and enforcement by the courts if the companies fail to comply with the agreement.
This landmark agreement sets a new standard for driver wages and benefits, correcting past injustices and ensuring fair compensation for drivers in the future.
The case was handled by a team from the Attorney General’s Office of Public Protection and Advocacy, consisting of Doug Martland, Matt Berge, Peter Downing, Meryum Khan, Trini Gao, Erin Staab, Ruth Lavache, Ken Procaccini, Jessica Rahmoune, Sean Attwood, Nick Willing, Jim Sweeney, Ed Cherubin, Pablo Marchena, Justin Polk, Alex Sugerman-Brozan, Amy Goyer, Greg Reutlinger, Tom Lam, Heather Rowe, Lauren Moran and Cyndi Mark, according to a release from Attorney General Campbell’s office.
The Attorney General’s office will announce more details about the claims process for eligible drivers in the coming weeks, ensuring that those who were underpaid by Uber and Lyft will receive the compensation they deserve.
This landmark settlement not only provides immediate financial relief and protections for drivers, it also sets a precedent for other states to follow in ensuring that workers in the shadow economy are treated and compensated fairly.
Immigrants in the state of Massachusetts make up the majority of drivers for rideshare companies Uber and Lyft. Among the drivers, there are many Haitian immigrants in the state of Massachusetts.
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