Uber, Lyft agree to minimum pay for Massachusetts drivers to settle lawsuit
Adds further details on settlement in paragraphs 1-2, 6, 10-14
By Nate Raymond and Daniel Wiessner
BOSTON, June 27 (Reuters) -Uber Technologies UBER.N and Lyft LYFT.O on Thursday agreed to adopt a $32.50 hourly minimum pay standard for Massachusetts drivers and pay $175 million to settle a lawsuit by the state's attorney general alleging they improperly treated drivers as independent contractors who can legally receive lower compensation than employees.
The companies also agreed to give drivers paid sick leave, accident insurance, and healthcare stipends and to stop funding or supporting a ballot initiative that would have asked voters in November to cement app-based drivers' status as contractors, Attorney General Andrea Joy Campbell said.
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.
"In taking this opportunity, we've resolved historical liabilities by constructing a new operating model that balances both flexibility and benefits," said Tony West, Uber's chief legal officer.
The agreement requires Uber to pay $148 million and Lyft to pay $27 million to the state. At least $140 million will be paid out to drivers, according to a court filing.
Campbell, a Democrat, made the announcement hours after Massachusetts' top court cleared the way for voters to decide whether to approve the industry-backed ballot measure, along with a dueling labor-backed proposal to allow drivers to unionize that will continue to move forward.
It was also the eve of closing arguments in a non-jury trial in a lawsuit filed in 2020 by Campbell's predecessor, now-Governor Maura Healey, over the status of drivers whose services have helped fuel the U.S. gig worker economy.
Campbell had been asking a judge to conclude that the state's 55,000 Uber drivers and 35,000 Lyft drivers are employees under state law and therefore entitled to benefits such as a minimum wage, overtime and earned sick time.
Studies have shown that using contractors can cost companies as much as 30% less than employees.
"For years, these companies have underpaid their drivers and denied them basic benefits," Cambpell said in a statement. "Today's agreement holds Uber and Lyft accountable."
The settlement provides for greater benefits and pay for Uber and Lyft drivers than provided under a similar settlement in November with New York state and under legislation signed into law in May in Minnesota.
Uber and Lyft in defending themselves at trial had argued that Campbell's office misunderstood their business models and that they could be forced to cut or end service in Massachusetts if their drivers were deemed employees.
They along with DoorDashDASH.O and Instacart had financially supported Flexibility and Benefits for Massachusetts Drivers, the ballot measure committee behind the proposal to ask voters to deem app-based drivers as contractors.
The proposal had also called for providing drivers benefits similar to those in the settlement. After its announcement, Conor Yunits, a spokesperson for the industry-backed campaign, said the group will no longer be moving forward with the initiative.
The industry through a $200 million campaign had previously in2020 convinced California voters to pass a measure similar to the one backed by the companies in Massachusetts, solidifying drivers as independent contractors with some benefits. Litigation challenging that measure is ongoing.
Reporting by Nate Raymond in Boston and Daniel Wiessner in Albany, New York; Editing by Franklin Paul, Nick Zieminski and David Gregorio
Ativos relacionados
Últimas notícias
Isenção de Responsabilidade: As entidades do XM Group proporcionam serviço de apenas-execução e acesso à nossa plataforma online de negociação, permitindo a visualização e/ou uso do conteúdo disponível no website ou através deste, o que não se destina a alterar ou a expandir o supracitado. Tal acesso e uso estão sempre sujeitos a: (i) Termos e Condições; (ii) Avisos de Risco; e (iii) Termos de Responsabilidade. Este, é desta forma, fornecido como informação generalizada. Particularmente, por favor esteja ciente que os conteúdos da nossa plataforma online de negociação não constituem solicitação ou oferta para iniciar qualquer transação nos mercados financeiros. Negociar em qualquer mercado financeiro envolve um nível de risco significativo de perda do capital.
Todo o material publicado na nossa plataforma de negociação online tem apenas objetivos educacionais/informativos e não contém — e não deve ser considerado conter — conselhos e recomendações financeiras, de negociação ou fiscalidade de investimentos, registo de preços de negociação, oferta e solicitação de transação em qualquer instrumento financeiro ou promoção financeira não solicitada direcionadas a si.
Qual conteúdo obtido por uma terceira parte, assim como o conteúdo preparado pela XM, tais como, opiniões, pesquisa, análises, preços, outra informação ou links para websites de terceiras partes contidos neste website são prestados "no estado em que se encontram", como um comentário de mercado generalizado e não constitui conselho de investimento. Na medida em que qualquer conteúdo é construído como pesquisa de investimento, deve considerar e aceitar que este não tem como objetivo e nem foi preparado de acordo com os requisitos legais concebidos para promover a independência da pesquisa de investimento, desta forma, deve ser considerado material de marketing sob as leis e regulações relevantes. Por favor, certifique-se que leu e compreendeu a nossa Notificação sobre Pesquisa de Investimento não-independente e o Aviso de Risco, relativos à informação supracitada, os quais podem ser acedidos aqui.
