Uber & Lyft Raise Massachusetts Drivers’ Minimum Wage To $32.50

Massachusetts Attorney General Andrea Campbell announced that her office has reached a deal with Uber and Lyft to provide more benefits and protections for their drivers.

As part of the deal, Uber and Lyft will pay drivers at least $32.50 per hour. Drivers will also get paid sick leave and a stipend to join the Massachusetts paid family and medical leave program. The agreement also includes a health insurance benefit, allowing drivers to combine their hours from both companies to get a health insurance stipend. Drivers will also be covered by up to $1 million in occupational accident insurance for work-related injuries.

"For years, these companies have underpaid their drivers and denied them basic benefits. Today’s agreement holds Uber and Lyft accountable, and provides their drivers, for the very first time in Massachusetts, guaranteed minimum pay, paid sick leave, occupational accident insurance, and health care stipends," Campbell said in a statement.

The settlement came just hours after the Supreme Judicial Court of Massachusetts approved two ballot questions for the upcoming election about whether Uber and Lyft drivers should be considered employees or independent contractors.

Lyft's statement said, "With the settlement of the case, the issues around driver classification and benefits have been resolved, meaning there is no longer an immediate need for the ballot measure."

Uber's statement said, "This agreement is an example of what independent, flexible work with dignity should look like in the 21st century. We are thrilled to see more policymakers supporting portable benefits and innovative frameworks to improve independent work."

Campbell also mentioned that Uber and Lyft will now provide drivers with information about the length of a trip, the destination, and expected earnings before accepting a ride. Additionally, drivers will get detailed pay information about their earnings and how much a rider has paid after each trip.

The agreement also outlines how to handle any violations by either company, including a process for drivers to report complaints to the Massachusetts Attorney General's Office and enforcement by a court if the companies do not comply.

According to multiple reports, Instacart and DoorDash were also involved in efforts to change driver status under state law and might have continued the fight independently. However, a campaign spokesperson confirmed that supporters no longer plan to submit a question for the November 5 ballot.

Check out the complete statement from the Office of the Attorney General here for more information.