Boston, Massachusetts – Uber and Lyft have agreed to a groundbreaking deal to provide minimum pay for drivers in the state. This agreement marks a significant step towards ensuring fair compensation and working conditions for gig workers in the ride-hailing industry.

Under the settlement reached with the state, Uber and Lyft will now pay drivers $32.50 per hour while they are actively on rides. This hourly minimum wage is aimed at addressing concerns over the erosion of labor rights and fair wages in the gig economy. The move comes after years of advocacy and legal battles over the classification of drivers as independent contractors rather than employees.

The $175 million settlement negotiated by the Massachusetts Attorney General’s office is a landmark development in the ongoing debate over the rights of gig workers. It not only establishes a minimum wage for drivers but also includes other benefits aimed at improving their working conditions.

By agreeing to this settlement, Uber and Lyft are setting a new standard for labor practices in the gig economy. This decision may have far-reaching implications for other states and cities grappling with similar issues of worker classification and fair compensation.

Overall, the deal between Uber, Lyft, and the state of Massachusetts represents a significant advancement in the fight for fair labor practices and economic justice for gig workers. As the gig economy continues to grow and evolve, it is crucial for companies to prioritize the well-being and rights of their workers to ensure a more equitable and sustainable future for all.