Massachusetts state Attorney General’s Office reached settlement with the rideshare companies Uber and Lyft last year.
For years, the Attorney General’s Office litigated against the companies in an effort to ensure drivers receive a guaranteed minimum wage. Current and former drivers who were underpaid by the companies will be receiving checks.
All in all, close to $175 million will be distributed as restitution for drivers.
Uber paid $148 million, and Lyft paid $27 million.
Close to 70,800 drivers should receive checks, The Boston Business Journal reported.
Under the settlement, drivers now receive a minimum of $33.48 per hour for time spent driving to pick up passengers and bringing them to their destinations. This will increase annually by 3%, or the rate of inflation. The agreement also secured guaranteed paid sick leave, access to a health insurance stipend, and occupational accident insurance.
Last year, Massachusetts voters granted rideshare drivers the ability to unionize. The new App Drivers Union now has around 70,000 members and is a major player in the opposition movement against autonomous vehicles coming to the state.
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