Uber, $UBER, and Lyft, $LYFT, must now pay Massachusetts drivers at least $32.50/hr

Uber, $UBER, and Lyft, $LYFT, must now pay Massachusetts drivers at least $32.50/hr.

Drivers for Uber and Lyft have achieved a minimum wage of $32.50 per hour thanks to an initiative led by Massachusetts Attorney General Andrea Joy Campbell. The settlement includes a $175 million payment from the ride-hailing companies to address claims of labor law violations.

"For years, these companies have underpaid their drivers and denied them essential benefits. Today's agreement holds Uber and Lyft accountable and provides drivers in Massachusetts with guaranteed minimum pay for the first time, along with paid sick leave, occupational accident insurance, and health care stipends," Campbell stated.

According to Campbell's office, Uber will contribute $148 million while Lyft will contribute $27 million. Most of this amount will be allocated as restitution to current and former drivers who were underpaid.

In a statement, Uber noted, "In resolving a longstanding lawsuit in Massachusetts, we have reached an agreement with Attorney General Andrea Campbell that offers drivers new protections and benefits, including the first portable health insurance benefit fund in the nation, while maintaining their independent work status."

Massachusetts Governor Maura Healey praised Campbell for her successful lawsuit addressing labor rights violations.

"Our lawsuit against Uber and Lyft has always focused on fairness for drivers," Healey remarked. "I commend Attorney General Campbell and her team for securing this settlement, which provides historic wages and benefits to rectify past injustices and ensure fair pay for drivers moving forward."