Uber and Lyft now required to pay Massachusetts rideshare drivers $32 an hour

Massachusetts rideshare drivers will soon earn $32.50 per hour as part of a settlement with Uber and Lyft, effective August 15th. This settlement follows a lawsuit by Attorney General Andrea Campbell, who argued that drivers should be considered employees under state law.

Aside from the increased hourly pay, drivers will receive benefits such as annual inflation-based raises, up to 40 hours of sick leave paid at $20 per hour, and stipends for healthcare and family leave programs. The companies have also agreed to pay a combined $175 million to underpaid current and former drivers.

To ensure compliance, Uber and Lyft must conduct annual audits and report to the Attorney General’s office, with penalties for violations. Despite this settlement, the drivers will still be classified as independent contractors, and Uber and Lyft have agreed to halt support for similar regulatory exemptions like those in California.