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Uber Technologies (NYSE:UBER) and Lyft (NASDAQ:LYFT) struck a deal with Massachusetts Attorney General Andrea Campbell’s office on Thursday to resolve a multi-year lawsuit regarding the classification status of drivers working for the two companies.
The agreement will see Uber (UBER) and Lyft (LYFT) agree to raise their minimum pay to $32.50 per hour and offer what was described as a suite of benefits and protections for drivers. In addition, the agreement will require Uber (UBER) to pay the state $148 million and Lyft (LYFT) to pay the state $27 million. Those funds will be used for restitution payments to current and former drivers.
"For years, these companies have underpaid their drivers and denied them basic benefits. Today’s agreement holds Uber and Lyft accountable, and provides their drivers, for the very first time in Massachusetts, guaranteed minimum pay, paid sick leave, occupational accident insurance, and health care stipends," read a statement from the AG's office.
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