Massachusetts Uber, Lyft drivers win $32.50 wage in AG labor violations settlement

June 28 (UPI) -- Uber and Lyft drivers have won a minimum pay rate of $32.50 per hour in an action brought by Massachusetts Attorney General Andrea Joy Campbell. It includes a $175 million payment from the app ride companies to settle labor law violation claims.

"For years, these companies have underpaid their drivers and denied them basic benefits. Today's agreement holds Uber and Lyft accountable, and provides their drivers, for the very first time in Massachusetts, guaranteed minimum pay, paid sick leave, occupational accident insurance, and health care stipends," Cambell said in a statement.

Uber will pay $148 million and Lyft will pay $27 million, according to Cambell's office.

She said most of that amount will be distributed as restitution to current and former drivers "who were underpaid by the companies."

An Uber statement said, "In resolving a longstanding lawsuit in Massachusetts, we have reached an agreement with Attorney General Andrea Campbell that gives drivers access to new protections and benefits, including the nation's first portable health insurance benefit fund, while preserving their ability to work independently."

Massachusetts Gov. Maura Healey commended Campbell for her successful labor rights violations lawsuit.

"Our lawsuit against Uber and Lyft was always about fairness for drivers," Healey said in a statement. "I congratulate Attorney General Campbell and her team for securing this settlement that delivers historic wages and benefits to right the wrongs of the past and ensure drivers are paid fairly going forward."

Massachusetts AFL-CIO President Chrissy Lynch echoed the praise.

"This settlement includes a comprehensive package of strong wages, benefits and protections for the drivers that these corporations have been exploiting for years. We deeply appreciate AG Campbell's hard work holding these corporations rightfully accountable to Massachusetts employment laws," Lynch said.

The settlement with Uber and Lyft provide a range of labor protections and benefits for workers who drive for the companies.

They include a health insurance benefit, guaranteed paid sick leave and requirements to provide drivers with more detailed pay information as well as protections against the companies discriminating against drivers on race. religion, national origin, sex, sexual orientation, gender identity or disability.

The settlement prevents the companies from retaliating against drivers who filed complaints with the Attorney General's office or have sought payment or benefits under the settlement.