Uber and Lyft drivers to receive $32.50 hourly wage in Massachusetts

The drivers registered under Uber and Lyft have secured an hourly wage of $32.50 in Massachusetts after the companies were sued for not rewarding their drivers handsomely. It was alleged that both Uber technologies and Lyft treated drivers as independent contractors and paid them significantly less than the employees in the companies.

For that reason, the drivers are now to receive $32.50 hourly salary. They are entitled to receive the benefits enjoyed by employees such as accident insurance, medical stipends, paid sick leaves, and more. It is reported that the drivers in Massachusetts are now earning more than an average teacher who earns roughly $25.06 per hour.

This newly found development was a fight for the drivers to be regarded as employees while enjoying the benefits accrued to the employees of Uber driver and Lyft. They no longer want to be treated as contractors who do not earn what they deserve. The court ruling ordered Uber to pay $148 million while Lyft paid $27 million, out of which $140 million will be disbursed to drivers across Massachusetts.

In a recent statement, the running Attorney General of Massachusetts, Lawyer Andrea Joy Campbell, made it known that Uber and Lyft have been underpaying their staff for years, treating them as contractors and denying them benefits entitled to employees. Both companies have recorded a 30% decrease in their cost and an equivalent value in revenue by treating their drivers as contractors. During the trial, Uber Technologies and Lyft argued that Andrea Joy Campbell's office didn't understand their business model and the reason they require their drivers to be contractors instead of employees. The companies stated that they may have to end service in Massachusetts if their drivers gain access to employee benefits as it would affect their business model.

However, Campbell's office won the case against Uber and Lyft by helping the drivers in Massachusetts reclaim their rights. Now, each driver would receive $32.50 as their new hourly wage, a pay deemed to be higher than that of an average teacher.