[US] Landmark minimum hourly pay agreement for Uber and Lyft drivers in Massachusetts

In Massachusetts, Uber and Lyft have reached a historic agreement with prosecutors guaranteeing drivers a minimum hourly pay rate for the first time, HR Grapevine reports.

Under the new deal, drivers will be entitled to a minimum pay of $32.50 per hour; one of the highest rates for ride-sharing workers nationwide.

In addition, the companies have reportedly agreed to a $175 million settlement with the state to compensate current and former drivers who were previously underpaid.

The deal will also see workers guaranteed further benefits including paid sick leave, occupational accident insurance and healthcare stipends.

The minimum wage applies solely to periods when drivers have customers onboard or are travelling to collect them. It will not cover periods where drivers have not accepted a ride request.

Abby Taylor - deputy attorney general for Massachusetts - reportedly said that the $32.50 rate is intended to account for this downtime.

An appeals process has now been implemented to allow drivers to take action when they believe their accounts have been unfairly deactivated.

Commenting on the agreement reached in late June, Andrea Campbell - the state’s attorney general - said, “For years, these companies have underpaid their drivers and denied them basic benefits… Today’s agreement holds Uber and Lyft accountable.”

The settlement follows four years of litigation. Massachusetts now joins Minnesota, New York and Washington as one of four states to offer a minimum wage to drivers at companies such as Uber and Lyft.

Ride-share drivers who work over 15 hours per week will be entitled to sick leave under the new agreement and can accrue up to 40 hours of paid sick leave per year.

The leave can reportedly be bought via stipends, giving drivers the ability to buy into Massachusetts’ state program for paid family and medical leave. They will also be granted given a stipend for health benefits.

Speaking to The Guardian, Jeremy Bird - Lyft’s EVP of Driver Experience - stated that the moment was a “huge win for Massachusetts drivers,” and added that it “secures their freedom to earn when, where and however long they want”.

Mr Byrd said that Lyft’s flexible working platform relies on an average of 8,500 drivers daily in Massachusetts.

The deal was reportedly settled just days before Uber and Lyft planned to cease operating in Minneapolis. Earlier in the year, the gig economy giants announced plans to withdraw from the city after its council passed legislation that guaranteed a minimum pay rate for drivers.

The pay rise had been planned for May 1, however, the council delayed it until July 1, prompting Uber and Lyft to put off their planned exit.

Minneapolis will now be the sole US city where Uber and Lyft do not operate.

Source: HR Grapevine

(Quotes via original reporting)

In Massachusetts, Uber and Lyft have reached a historic agreement with prosecutors guaranteeing drivers a minimum hourly pay rate for the first time, HR Grapevine reports.

Under the new deal, drivers will be entitled to a minimum pay of $32.50 per hour; one of the highest rates for ride-sharing workers nationwide.

In addition, the companies have reportedly agreed to a $175 million settlement with the state to compensate current and former drivers who were previously underpaid.

The deal will also see workers guaranteed further benefits including paid sick leave, occupational accident insurance and healthcare stipends.

The minimum wage applies solely to periods when drivers have customers onboard or are travelling to collect them. It will not cover periods where drivers have not accepted a ride request.

Abby Taylor - deputy attorney general for Massachusetts - reportedly said that the $32.50 rate is intended to account for this downtime.

An appeals process has now been implemented to allow drivers to take action when they believe their accounts have been unfairly deactivated.

Commenting on the agreement reached in late June, Andrea Campbell - the state’s attorney general - said, “For years, these companies have underpaid their drivers and denied them basic benefits… Today’s agreement holds Uber and Lyft accountable.”

The settlement follows four years of litigation. Massachusetts now joins Minnesota, New York and Washington as one of four states to offer a minimum wage to drivers at companies such as Uber and Lyft.

Ride-share drivers who work over 15 hours per week will be entitled to sick leave under the new agreement and can accrue up to 40 hours of paid sick leave per year.

The leave can reportedly be bought via stipends, giving drivers the ability to buy into Massachusetts’ state program for paid family and medical leave. They will also be granted given a stipend for health benefits.

Speaking to The Guardian, Jeremy Bird - Lyft’s EVP of Driver Experience - stated that the moment was a “huge win for Massachusetts drivers,” and added that it “secures their freedom to earn when, where and however long they want”.

Mr Byrd said that Lyft’s flexible working platform relies on an average of 8,500 drivers daily in Massachusetts.

The deal was reportedly settled just days before Uber and Lyft planned to cease operating in Minneapolis. Earlier in the year, the gig economy giants announced plans to withdraw from the city after its council passed legislation that guaranteed a minimum pay rate for drivers.

The pay rise had been planned for May 1, however, the council delayed it until July 1, prompting Uber and Lyft to put off their planned exit.

Minneapolis will now be the sole US city where Uber and Lyft do not operate.

Source: HR Grapevine

(Quotes via original reporting)