Drivers for Uber and Lyft will earn a minimum pay standard of $32.50 per hour under a settlement announced Thursday by Massachusetts Attorney General Andrea Campbell, in a deal that also includes a suite of benefits and protections. The two companies will also be required to pay a combined $175 million to the state to resolve allegations that the companies violated Massachusetts wage and hour laws, a substantial majority of which will be distributed to current and former drivers. Campbell said the settlement resolves her office’s yearslong litigation against the two companies and stops the threat of their attempt to rewrite state employment law by a proposed 2024 ballot initiative.
BOSTON (Reuters) -Uber Technologies and Lyft will pay $175 million and implement a $32.50 hourly minimum wage for drivers in Massachusetts to settle the state's lawsuit accusing them of improperly treating drivers as independent contractors who can legally receive lower compensation than employees, the state's attorney general said on Thursday. The companies also agreed to give drivers paid sick leave, accident insurance, and healthcare stipends and to stop funding or supporting a state ballot initiative that would cement app-based drivers' status as contractors, Democratic Attorney General Andrea Joy Campbell said in a statement. Uber and Lyft in separate statements said the agreement reflected the desire of most drivers to work on their own terms while receiving many of the key benefits that are legally guaranteed to employees.
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