Ride-sharing companies Uber (UBER) and Lyft (LYFT) have been pushed to pay drivers more in states across the country, with the latest pay increases coming Thursday in Massachusetts.
Uber and Lyft drivers in the state secured a guaranteed wage floor and other benefits, while maintaining their status as independent contractors, in a deal between the companies and the state attorney general.
The companies will be required to pay their gig-economy drivers $32.50 per active trip hour and provide benefits including paid sick leave.
The agreement settles a 2020 lawsuit filed by the state of Massachusetts arguing that gig-economy drivers should be classified as employees, which would entitle them to additional benefits and protections under state law. Uber and Lyft also agreed to pay Massachusetts a combined $175 million to settle allegations of state wage law violations.
While the independent contractor label remains in place for drivers, Attorney General Andrea Joy Campbell’s office noted that the …