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
Add me please
Be great if Florida would do this.
Add me
I am a driver for both platforms in Michigan and they do not.pay the drivers well. They hike the rates for customers but do not pay the drivers any of the hikes.
Add me up
I want in! These companies take almost half of what they charge the customers. With zero tips, I donโt make enough, but Iโm still running my car to the ground for them.
Yes I would like to be included but I donโt know if this also includes Uber eats which I did for a while
I drove for both. But, my Lyft was deactivated last September because a lady got upset due to her being charged a return item fee. I told her she needed to talk to lyft about there policies. She apparently lied. When they deactivated my account I was told it was a โsafetyโ violation. However, once the got back to me I was told she said I asked her for cash to return the item to the passenger. I never asked her for anything. And I had the text messages to prove it. Lyft apparently sacrificed my to satisfy her. I have never asked a passenger for cash to return an item. I drove for them for 5 plus years and was 5star rated. I would very much appreciate sone assistance with this mater
Yes! I want to be added to the lawsuit I been with Uber for 4 years and Lyft for 5 years
Add me please! I drove for Uber and Lyft in VA.