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
I drive for Uber in Massachusetts.
I drive for Uber in Massachusetts
Iโve been working on and for years with Uber here in Chicago IL. When I first started I was told Uber only take 25 percent and we take the rest thatโs a lie according to some of passengers tells what uber charge them verses what they give us is like pennies Uber takes more than 50 percent of the money sometimes while we take all the risk itโs not fair
Iโve been driving for Uber off and on since 2015 in Atlanta, ga. And then in Dallas, TX. Am I covered? If so add me please.
I work for Uber and Lift for years
And any cuestions you can contact me
Iโve been driving for Uber since 2015 first in Atlanta Ga. and now in Dallas Tx. Am i covered? If so Add me please.
I drove for uber 8 yrs going and lyft for the past 4 yrs in Maryland and now in texas. Am I covered?
Please add me
Please Add Me
I work and worked for Uber for years off and on. In the beginning Uber paid better but was unfair when it came to accepting a trip. But now Uber is robbing all of the drivers. We are told that we are paid mileage from the time we except the trip until the end of the trip. We are not. We donโt even get paid mileage. I have argue with support and ask them to show me how Iโm getting paid for my mileage. They couldnโt and havenโt. Why is it that we have to pay taxes on money that we never receive. We are paying Uberโs taxes. Uber only pays pennies in taxes on the 1099 tax form that I received from Uber. But on the 1099 tax form it shows that I received thousands of dollars, when it is Uber that has received it. Why is it that we are charged for paying for two insurance companies. We have to have insurance that we pay on our vehicle and Uber take hundreds of dollars a week for insurance from drivers. My understanding is that Uber is to pay for our vehicle insurance while on the platform. Because if we the drivers had to pay for commercial insurance it would be a lot cheaper a month than what Uber is robbing us a month. Commercial insurance with a good driving record is about $300 to $500 a month . Not $1200 a month that Uber takes and says that we received money. Iโve been cheating out of thousands of dollars each year because of the insurance issue, the mileage issue and the unfair trip pay. Uber says up front pricing. When in fact itโs not. I have documents that show no mileage for the trip, but Uber says I was paid mileage. Iโve asked Uber to show me the mileage on there platform and they couldnโt give me. When it comes to receiving the stipend healthcare pay based off mileage per quarter. When I add up the mileage that Uber shows on the platform it adds up to what you can see. But all of the trips that donโt have any mileage that was completed are not even counted for the mileage that was driven. That means Uber is not paying drivers mileage and it makes drivers have to drive more miles just to get paid the stipend healthcare payment because they have own health insurance.
If you need the proof let me know
Add me.Working for Uber and Lyft for years now
I drove for Uber and Lyft in Georgia for 2 years. Am I covered under the class action lawsuit?
I drive for Uber in Arkansas after I did the math on my take as an independent contractor, I realized I was making below minimum wage! And I was driving a new Kia and having to get my vehicle inspected in a state where we donโt have to and I told them my vehicle was new but it didnโt matter. That alone should of make me realize that I was considered an employee and not a contractor