Uber Technologies and Lyft 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
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