Politics & Government
MA Uber, Lyft Drivers Get Big Pay Bump Today After Lawsuit Settlement
Drivers will get a minimum pay floor and other benefits, but Uber and Lyft are also getting a key concession.
MASSACHUSETTS — Massachusetts Uber and Lyft drivers are now among the highest paid in the nation, with a new minimum pay rate now in effect following a state lawsuit against the companies.
Starting Thursday, rideshare drivers will earn a minimum of $32.50 per hour of "engaged time" — which is when drivers are in the process of picking up, transporting and dropping off fares. The pay rate includes time spent driving to a pickup spot, and time spent waiting for a fare to board. The pay rate will increase annually by either 3% or the rate of inflation starting in January.
The new pay rate is part of a larger compensation settlement with Uber and Lyft brokered by Attorney General Andrea Campbell this year. Gov. Maura Healey filed the original 2020 lawsuit against the companies while she was attorney general, charging that the rideshare companies violated state wage laws.
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"While their ads try to take credit for doing this, let's be clear: they're paying because they have to, not because they want to," Attorney General Andrea Campbell said Thursday. "My office took Uber and Lyft to court, forced them to account for exploiting drivers, and delivered drivers an unprecedented package of benefits and protections including a minimum pay standard, earned sick time, and stipends for health insurance and paid leave."
The rideshare drivers will also get almost four years worth of back pay totaling $140 million and other benefits, like accident insurance, paid sick leave, health insurance and the right to appeal when the apps deactivate drivers. Those benefits will go into effect between September and March.
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The settlement also ended a ballot question initiative backed by the rideshare companies to determine if drivers should remain independent contractors or full employees. The companies have long fought to keep drivers as independent contractors, allowing them to escape wage and benefits responsibilities.
Campbell's settlement keeps drivers classified as independent contractors. The settlement also does not apply to other app-based employees working for companies like DoorDash, Instacart and GrubHub.
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