Uber and Lyft agree to minimum pay and benefits in Massachusetts settlement

Uber and Lyft have agreed to offer a minimum wage, paid sick leave and other benefits to drivers as part of a $175 million settlement that resolves a multiyear legal battle with the state of Massachusetts.

Ride-hailing companies will be required to pay drivers a minimum of $32.50 per hour, provide one hour of paid sick leave for every 30 hours worked, offer a stipend for joining the state’s paid family and medical leave program, and allow drivers to share their hours. between companies to receive a healthcare grant.

Uber must also pay the state $148 million to resolve alleged labor violations, while Lyft must pay $27 million.

“For years, these companies have underpaid their drivers and denied them basic benefits,” Massachusetts Attorney General Andrea Joy Campbell said in a statement.

“I want to thank my team, whose hard work has ensured a standard of dignity for all drivers across the state, and our labor allies and drivers themselves for their tireless work and advocacy,” she added.

Uber and Lyft also touted the deal as a victory, emphasizing that the agreement provides new benefits to drivers while maintaining flexibility.

“This agreement is an example of what independent, flexible and dignified work should look like in the 21st century,” wrote Tony West, Uber’s chief legal officer, in a press release.

“By seizing this opportunity, we resolve historical liabilities by building a new operating model that balances flexibility and benefits,” he added. “This allows both Uber and Massachusetts to move forward in a way that reflects what drivers want and demonstrates to other states what is possible to achieve.”

The settlement comes shortly after the Massachusetts Supreme Judicial Court cleared the way for a ballot measure that would have allowed voters to decide whether ride-hailing and delivery drivers should be classified as employees or independent contractors.

However, the agreement eliminates the need for a November vote, both the attorney general and Lyft noted in their press releases.

“This is a huge win for Massachusetts drivers, ensuring their freedom to earn when, where and for as long as they want,” said Jeremy Bird, executive vice president of driver experience at Lyft, in a statement.

This story originally appeared on thehill.com read the full story