Uber Lyft settlement overview:ย
- Who: Uber Technologies and Lyft Inc. agreed to pay a combined $175 million last month to end claims brought against the rideshare companies by the state of Massachusetts.ย
- Why: Massachusetts claimed Uber and Lyft underpaid their drivers by misclassifying them as independent contracts when they were qualified to be employees under state law.ย
- Where: The settlement ends a complaint filed against Uber and Lyft in Massachusetts.ย
Rideshare companies Uber and Lyft agreed to pay a combined $175 million dollars last month to resolve claims they misclassified and underpaid their drivers.ย
The settlement ends a lawsuit brought against Uber and Lyft by the state of Massachusetts, which argued Uber and Lyft misclassified drivers as independent contractors when they were qualified to have been classified as employees.ย
In addition to the funds, the settlement agreement provides Uber and Lyft drivers with upgraded benefits, including a new minimum wage of $32.50 per hour, among other things.ย ย
โTodayโs agreement holds Uber and Lyft accountable, and provides their drivers, for the first time in Massachusetts, guaranteed minimum pay, paid sick leave, occupational accident insurance and healthcare stipends,โ Massachusetts Attorney General Andrea Joy Campbell said in a statement.ย
Uber, Lyft must provide drivers with more information about trips before they are takenย
Per the agreement, Uber will pay $148 million and Lyft will pay $27 million in total restitution for current and former drivers that were allegedly underpaid.ย
Uber and Lyft must also now provide drivers with more information about their trips before they take them, including their length, final destination and their expected total earnings.ย
Among other mandates, the companies are also barred from discriminating or retaliating against drivers and must make available an in-app chat with live support from a person in either English, Spanish, Portuguese or French, according to the settlement.ย
The settlement also ended a ballot measure that was backed by Uber and Lyft that would have asked voters in Massachusetts whether drivers for a rideshare or ride-hailing company should remain classified as independent contractors, reports Law360.ย
A union-backed ballot measure that could allow drivers to unionize and collectively bargain was reportedly unaffected by the settlement.ย
Uber previously agreed to pay $8.44 million in 2022 to end claims the company misclassified its drivers in the state of California as independent contractors.ย
Have you ever been misclassified as an independent contract by Uber or Lyft? Let us know in the comments.
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101 thoughts onUber, Lyft agree to pay $175M settlement in Mass. employee classification lawsuit
Now the ride fees will be higher and will lose drivers because of less demand.
This also means if declassified you cannot take expenses on taxes if w2 employee. This means all drivers owe a lot of tax money to the IRS. Nobody mentions this part.
Exactly
Add me Iโm in Oklahoma and underpaid
You are getting paid minimum wage in your state. The IRS covers your expenses through a tax deduction. I believe it is $0.65/mile for the 2024 tax year. That is enough for 99% of drivers.
Disagree with comment about drivers will owe more taxes because the taxes will now be withheld by their employerโฆ..and they can report their expenses on IRS Form 2106. Plus now drivers get benefits for health and sick leave, etc!! Much better all around for drivers!!!!
Add me
I live in Murfreesboro Tennessee and was under paid
Very unpaid in Tampa, Florida
Please add me ive got so much to add to my case as well !!!
I have worked for Lyft for 6years and Uber about 4 years how do I find out if I qualify please.
You donโt. Go educate yourself on what an independent contractor is. You are no different than an electrician, plumber, drywall specialist, etc that gets hired by a home builder.
How about New Jersey? Weโre being mistreated and underpaid too!!!!
What about California. I WAS so mad at Uber for the numerous trips i had to take that I had no idea it was so far out and then they defi etley didbmnt pay me enoughโฆ pkse count me in ive got so much more to add to that
Iโm in California too Iโm not able to drive as much cause not getting enough people and not paid good to do it add California drivers
Hello my name is Mark Johnson I am in Jacksonville Florida I have been driving Uber for the past 10 years and they are doing the same thing here I would like to talk to someone concerning the issue
You are getting paid at least state minimum wage. Uber and Lyft arenโt required to cover your job expenses since you get a tax deduction for that.
Count me in
We are very underpaid in Melbourne fla
When working for Uber in Delaware we was underpaid as well do we get to join a class action lawsuit
No. Unless you drive for GrubHub you are not an employee.
Bob why are you always saying this to everyone?
Do you work for Uber or Lyft or just enjoy being a troll?
You seriously have no idea what we drivers have to go through! I have had passengers break my door, rip my leather seats, and destroy my car, and have told Uber about this and their response is basically to suck it up! The best they do is offer an insurance claim, but the deductible is $2,500! You think we have that money?
I canโt imagine how it was before, but every 2 weeks I get the difference between minimum wage and my pay in California. I have only been driving since February of this year too. I should really be asking for some form of compensation, but Uber claims I do not qualify for any sort of inconvenience fee, despite the fact that I had to drive someone with a huge dog, when I told him I canโt and am allergic, the guy opened my door and said he doesnโt give a โF*ckโ and is getting a ride one way or another, threatening to beat me up and giving me no option except to drive him, a ride that was 35min for $10! How is that fair?
Anyways, Iโm in California. Bob is a troll. We should all get the compensation that Massachusetts just got. Thanks for reading guys.