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
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I drove for Lyft in North Florida for only about 6 months because of their lack of concern about safety and income! There are too many examples to list here in regards to both but feel free to contact me and I would be more than happy to get into details. Bottom line is that drivers basically work to keep gas in their vehicle! It would be absolutely impossible to earn enough wages to support a family even at the poverty level!
Same as wisconsin can only make enuff to put gas in or it says busy and only make 20 bucks for the whole day. Feel free to give me a call also.
I drove uber and uber eats for about nine years now! They are really Exploiting driving in idaho right now with unreasonably low fares ! Something needs to be done about it!
Iti
I worked as a uber driver in 2021. I was deactivated on false accusations of dui by customers on December 5,2022. I was not offered a sobriety test. Or even informed that a I was being accused of such accusations. I got off the app to get something to eat amd when I got back, I tried to get back on and my account was suspended. I wasnโt given the opportunity even defend myself. I reached out to lawyers and no one would touch it. I thought it was very unfair being so close to Christmas and working so hard to become the diamond driver that I was took many hours lot of frustration and a lot of hours of being underpaid for the job that I was doing in the middle of a pandemic I was the only driver in my area in fact basically the only real Uber driver that stretched all the way from Warrensburg New York down to Schenectady New York I filled in the blanks where others would not go you donโt become a diamond driver by drinking and driving I was a 4.98 when they deactivated me I feel it was illegal the New York State we have laws sobriety tests to prove whether or not we are drinking and driving or sleeping and driving however I was not allowed the opportunity to prove my innocence Uber had no real evidence against me when Factor was 60 miles an hour that night and weather was horrible slippery snowing all of it but I automatically lost my job with no way to take care of my family or myself thank you Uber for letting me down I felt like a slave.
Itโs so bad that when they do that, lyft also did thesame to me, the said someone said that i pulled out gun on him or her, I was never given any chance to prove anything, and i asked the lyft lady by Name Martha who called me that where is the evidence of the reporter, so why all this years I had drove why is that police has never pulled me over, why other riders never reported?
Even the way the martha spoke to me on the phone was unprofessional, I have dash cam, but when lyft contacted me it was two days after, when I rush to my cam it has reset and deleted once itโs full because it just small GB, when I wrote her back she said you canโt drive with us no more its permanent deactivated. I drove through the pandemic when no one wants to drive but this how they paid me back.But how the judged me thesame way they will get judged on earth and in heaven. Because i never owned a gun in my life, The do all this now that the have plenty drivers. you canโt certify everyone. some rider wants to take you to different route or use you multiple drops when you ask them to put it in the app they will refuse and get upset, once you dropped them off the will go straight to the app and cook up stories and sent to lyft and the will block. my advice to those who still driving is this. save your money and invest in other things so that when you have something like this it wonโt affect you much.. Then donโt care how you feeling, they donโt care if you have kids and you are the only one fighting for them. lesson learned. Thank you guys
GrubHub drivers are employees. Uber, Lyft and Doordash drivers are easily independent contractors. Why is this? GrubHub requires drivers to work a minimum of one shift per month or they get deactivated due to inactivity. If you end a shift early or skip a shift you risk deactivation by GrubHub. All of this makes it illegal for GrubHub to classify drivers as independent contractors in any state. Uber, Lyft and Doordash do none of this. You have full control over when and how much you want to work. If a home builder needs an electrician they will contact several and tell them what they are willing to pay. If an electrician thinks it is too little pay they are free to decline, but the electrician doesnโt get to decide how they get paid for a job.
Iโm so tired of hearing about these other states getting compensated, when here in Nashville, like Vegas,deal with obnoxious drunk people that we have to suck in or suck it up and drive do our jobs make sure everyone gets home safe after a binge week of drinking I stop driving XL because of the big groups no tipping drunk as hell and you people keep putting up posts about Massachusetts and Minnesota are you serious and we get the same deal $3 rides $3.45, but everybodyโs complaining about low wages and all these other states this is a tourist attraction nightmare and we deal with some of the most disrespectful people on the planet what about Us
I live and drive for Uber in central Florida. Several of the above infractions have taken place during my time with Uber. Am I eligible or qualified for compensation, or are the lawsuits state to state.
Same here. Iโm in the Tampa area. I used to drive for them about a year before covid during covid up until about the middle of 2023. I noticed a significant change in pay and virtually no tips! Itโs bad enough to deal with alot of the riders but to get paid just enough to cover the gas is ridiculous.
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I am dealing with this s mess with Uber now.
Go educate yourself on what an independent contractor is. The state of California recently determined GrubHub drivers are employees while Uber, Lyft and Doordash drivers are independent contractors. You should educate yourself on why that is before making such statements.
Thanks for your smarmy, wise ass answer. I think itโs you who should research one. An independent contractor is the same with the state law as well as the 12 badges indicated by the Internal Revenue Service.. Itโs a very close call, but I believe that per federal law, Uber drivers and Lyft drivers are independent contractors. Even in the state of Massachusetts, where the class action settlement has been reached, it does not change the fact that Massachusetts drivers will be treated as independent contractors with, additional benefits.
The hybrid is that, pursuant to the terms of the settlement agreement, Massachusetts Uber drivers will be tweeted still as independent contractors with the minimum wage of $32.50 per hour. Itโs like cutting The baby in half!
Add me i delivered for Uber eats
You donโt know what you are talking about. Go educate yourself on what an independent contractor is.
Have you ever been misclassified as an independent contract by Uber or Lyft? Let us know in the comments.
Re. Does Alaska (mainly Anchorage ) included for the Settlement or the whole Umited States?
You need to educate yourself on what an independent contractor is. Compare GrubHub to everyone else and youโll see. Until then you donโt know what you are talking about about or what an independent contractor is.
Same here, in Michigan. Count me in. They also stopped providing compensation when we get an order and drive all the way to the restaurant just to find out itโs closed. So we literally spent our time, gas, effort, and wear and tear on our car for freeโฆ They also allow their customers to take their tips away, after we have already completed service, when the job is only worth it with the tip. Uber only pays about 2 dollars. Door dash is even worse, while weโre at it.
They need to be pressured to increase pay across the board in all states. I donโt understand the higher ups thinking. They lost in NY now in MASS, they need to just pay fairly already. I know my Lyft pay is HALF of what it was a year ago. Today 90% of my calls are $2 โ $5.!! We have whatโs called โup front pricingโ. As of Jan 2024, we should be getting a minimum of 70% of what the rider paysโฆ.โguaranteedโโฆโฆ.after โestimated Lyft fees, insurance, tollsโโฆect. Sounds great huh? Well there is no real transparency at all. I mean shouldnโt the percentage of a fee be the same? Why fluctuate? I just have more questions. Ugh!!
I have over ten drop offs. and I donโt make over $90.
GrubHub, Doordash and Uber Eats pay drivers 100% of tips. That policy is the same in all 50 states. You donโt know what you are talking about.