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Rideshare drivers will soon get their share of $175 million in restitution
The payments come as a result of a settlement agreement reached by Uber, Lyft, and the state Attorney General's Office.
Tens of thousands of Uber and Lyft drivers in Massachusetts are expected to begin receiving checks in the mail soon, as a result of a settlement the state Attorney General’s Office reached with the rideshare companies last year.
All in all, close to $175 million will be distributed as restitution for drivers. Uber paid $148 million, and Lyft paid $27 million. Most drivers who drove more than 8 miles per week from July 2020 to July 2024 are entitled to a payment.
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.
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Attorney General Andrea Campbell’s office hired settlement administrator Rust Consulting to handle the payments. Rust began sending emails and notices in the mail to eligible drivers on Aug. 1. Those that have received notices do not need to take any further action and should be receiving their checks in the “early fall,” according to Campbell’s office.
Drivers that changed their physical address or email address recently may need to update their information in order to receive a payment. Instructions on how to do so and other information can be found on a dedicated webpage Rust set up for this particular settlement. Drivers have until Aug. 31 to update their addresses.
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The amount that drivers receive will be determined by a formula set by Campbell’s office. This formula is designed to give all non-casual drivers some amount of restitution, and drivers who were paid less than minimum wage after expenses like gas should receive the largest checks.
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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