Jul 03, 2024
In a significant development, rideshare drivers of Uber and Lyft in Massachusetts are going to bag their hourly rate of $32.50 alongside the company's employee perks, starting August 15th.
The fruitful decision comes as a result of a settlement for a petition lodged against cab-booking companies, requiring their drivers to be considered employees under state law.
According to The Verge, the pact has been signed four years after Attorney General Andrea Campbell sued Uber and Lyft.
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As a prerequisite to the settlement, the two ride-hailing companies have agreed to pay a sum of $175 million, whose biggest share will be given to “current and former drivers who were underpaid by the companies,” Campbell’s office announced yesterday.
The procedure to apply, and who is eligible for this settlement money will be disclosed “in coming weeks,” stated the office. While the settlement comes to be a fortune fixer for Uber and Lyft drivers, they won't cease to be considered independent contractors.
On the other hand, drivers will receive inflation-based pay raises on an annual basis as well as employee-style benefits. These benefits include being able to earn up to 40 hours of sick leave a year, paid at $20 per hour.
On the sidelines of the settlement amount, the companies have also agreed to pay the drivers stipend so they can buy healthcare and sign up for the state’s family and medical leave programme, while medical coverage of work-related injuries is a must.
