Boston, Massachusetts – Uber and Lyft have reached a groundbreaking settlement that will guarantee drivers a minimum hourly wage of $32.50, along with paid sick leave and a range of benefits and protections, announced Attorney General Andrea Joy Campbell on Thursday. This move is set to impact tens of thousands of Uber and Lyft drivers in Massachusetts, ensuring they receive fair compensation for their work.

As part of the settlement, Uber and Lyft will collectively pay $175 million to the state to address allegations of violating wage and hour laws in Massachusetts. Attorney General Campbell stated that a significant portion of this sum will be distributed as restitution to both current and former drivers who were previously underpaid by the companies.

This agreement marks the resolution of a lengthy legal battle between the Attorney General’s Office and Uber and Lyft. It also prevents the companies from attempting to alter state employment regulations through a proposed 2024 ballot measure, which could have led to inadequate protections for drivers and an earnings standard that did not guarantee a minimum wage.

Governor Maura Healey expressed her support for the settlement, emphasizing that it was always about ensuring fairness for drivers. The comprehensive package included in the agreement will rectify past injustices and ensure that drivers are fairly compensated moving forward.

The settlement mandates various provisions for Uber and Lyft, such as providing drivers with detailed trip information and pay breakdowns, prohibiting discrimination, and offering occupational accident insurance. In addition, drivers will now have access to benefits like paid sick leave and a health insurance stipend, marking a significant step towards improving working conditions for gig economy workers.

Drivers Demand Justice, a coalition advocating for union rights for rideshare drivers, praised the settlement as a step in the right direction. They emphasized the importance of forming a union to protect and further enhance the concessions secured in the agreement, highlighting the ongoing need for advocacy on behalf of drivers in the industry.

Overall, this settlement signifies a positive development for Uber and Lyft drivers in Massachusetts, providing them with essential protections and benefits that acknowledge their contributions to the companies’ success. It also sets a precedent for other states to consider similar measures to ensure fair treatment of gig economy workers.