Uber and Lyft will pay drivers 32.50 US dollars per hour in future
A legal dispute between Lyft and Uber with the state of Massachusetts lasted four years. It has now been settled.
A Lyft driver helps with the shopping. In Massachusetts, he will be paid more for his service in future.
(Image: Lyft)
The ride-sharing companies Uber and Lyft will pay their drivers in Massachusetts 32.50 US dollars per hour in future. They have reached an agreement with the US state's Attorney General, Andrea Campbell. She had accused the two companies four years ago of improperly failing to classify their drivers as employees and pay them accordingly, in accordance with the state's regulations. Lyft and Uber have now reached an agreement with the state.
The settlement agreement states that Uber will pay 148 million US dollars and Lyft 27 million US dollars. The money will mainly go to current and former drivers who, in Campbell's opinion, were previously underpaid.
First guaranteed minimum wage in Massachusetts
The agreement would see Uber and Lyft pay their drivers a guaranteed minimum wage for the first time in Massachusetts, including during sick days. There will also be accident insurance and access to health insurance, said Campbell. Whether the two companies comply with these and other requirements will be checked regularly.
Massachusetts is not the only US state in which Uber and Lyft have gotten into trouble for their employment practices. At the end of 2023, the two companies reached an agreement with the New York Attorney General's Office on similar conditions and an additional payment. The ride-hailing companies are withdrawing from the US city of Minneapolis after the city council there voted in favor of drivers being paid the local minimum wage. In the UK, Uber has had to treat its drivers as employees since March 2021, as the London Supreme Court ruled at the time.
(anw)