The deal, announced on Thursday, establishes a minimum pay standard and introduces a suite of benefits for drivers while preserving their status as independent contractors. This development has significant implications for the gig economy and has been reflected in the companies’ stock performances.Under the new agreement, Uber and Lyft drivers in Massachusetts will be guaranteed a minimum pay of $32.50 per hour for time spent on trips and en route to pickups.
Additional benefits include a stipend for the state’s paid family and medical leave program, protection against discrimination and retaliation, and increased transparency on trip details before acceptance. The companies will also provide in-app chat support in multiple languages and implement an appeal process for driver deactivations.
Both companies view this as a major victory, preserving drivers’ independent contractor status while providing enhanced benefits. The agreement creates a framework that balances flexibility with worker protections, potentially serving as a model for similar agreements in other states.
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