Uber, Lyft to Pay Drivers in Massachusetts $32.50 an Hour

From PC Mag: Uber and Lyft are now required to pay drivers in the state of Massachusetts $32.50 an hour and provide them with company-sponsored benefits.

In 2020, Attorney General Andrea Campbell sued the companies, claiming that drivers should be considered employees. They've now settled and landed on the $32.50 rate. But drivers on both services will still be classified as independent contractors.

Still, drivers did secure some employee-like benefits including inflation-based pay raises and the ability to earn up to 40 hours of sick leave each year, which will be paid at $20 per hour.

“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,” AG Campbell said in a statement.

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