Uber, Lyft must now pay Massachusetts drivers $32 an hour

Uber and Lyft drivers in Massachusetts are getting major raises. Ride-sharing firms must now offer advantages and implement an hourly rate of $32.50 for his or her contract staff.

Rideshare drivers to earn $32.50 an hour starting Aug. 15 under $175 million settlement Initiated by state. Massachusetts Attorney General Andrea Campbell first sued Uber and Lyft 4 years ago, alleging they underpaid drivers and denied them employment advantages they were entitled to.

The lawsuit was finally settled in June. Now, recent rules have been introduced for Uber and Lyft to make sure their independent contractors are paid a living wage. Campbell referred to the settlement as holding ride-hailing firms “accountable” for keeping their drivers.

“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 in Massachusetts, with a guaranteed minimum wage, paid sick leave, workplace injury insurance, and health care stipends,” said Attorney General Campbell. “I want to thank my team, whose hard work has ensured every driver across our state has a standard of dignity, as well as our union allies and the drivers themselves for their tireless work and advocacy.”

Uber will pay the majority of the hefty settlement, giving $148 million to Lyft, which received $27 million. The money might be distributed to all underpaid drivers, including current and former drivers. In addition, drivers will receive guaranteed paid sick leave and a collective medical health insurance profit. They may also receive a paid stipend to buy the state’s paid medical and family leave program.

State Governor Maura Healey also congratulated Attorney General Campbell for reaching a “historic” settlement that improves the lives of staff.

“Our lawsuit against Uber and Lyft has always been about justice for drivers. I applaud Attorney General Campbell and her team for securing this settlement, which provides historic wages and benefits to right the wrongs of the past and ensure drivers are paid fairly in the future,” Healey said.

Additionally, Uber and Lyft are prohibited from retaliating or discriminating against drivers who can have filed a grievance about their practices. They will now should conduct an audit while ensuring that these recent rules are implemented.