Under the agreement, Uber and Lyft will provide paid sick leave, accident insurance and healthcare stipends
Uber and Lyft agreed to a $32.50 hourly minimum pay standard for Massachusetts drivers and will pay $175 million to settle a 2020 lawsuit that alleged they misclassified drivers as independent contractors.
Under the agreement, Uber will pay $148 million and Lyft $27 million to the state, with $140 million going to drivers to resolve wage law violations.
Drivers will get sick leave, accident insurance and healthcare stipends.
The agreement follows similar legislation in California and Washington, which set new standards for gig workers’ pay and benefits.