Lyft Finalizes Significant Agreement with Massachusetts Attorney General’s Office

Lyft has reached a significant agreement with the Massachusetts Attorney General’s Office to safeguard driver independence while introducing new benefits for drivers.

In the previous year, more than 35,000 drivers in Massachusetts utilized the flexibility offered by the Lyft platform. These drivers, including small business owners, family caretakers, teachers, and MBTA bus drivers, chose ridesharing to supplement their income. The new agreement provides these drivers with the benefits they desire while maintaining the independence that initially attracted them to Lyft.

Central to this agreement were the drivers themselves. A notable 91% of Massachusetts drivers on the Lyft app supported a similar proposal that allows them to remain independent contractors, preserving their current flexibility and gaining some, but not all, of the benefits typically provided to employees.

The agreement includes several key provisions:

• All Massachusetts app-based rideshare drivers will have a minimum earnings standard of $32.50 per hour for engaged time (from the time they accept a ride until its completion), with adjustments for inflation over time.
• Drivers will be eligible for paid sick leave, paid family and medical leave, occupational accident insurance coverage, and a pioneering portable healthcare fund.

Additionally, Lyft has committed to paying $27 million, most of which will be allocated to a driver fund managed by the Massachusetts Attorney General’s Office.

This agreement resolves a recent lawsuit and negates the necessity for a ballot initiative campaign on this issue in November. It represents a significant triumph in a prolonged campaign by Massachusetts drivers to retain their independent status while gaining access to new benefits. This outcome supports continued driver earnings and keeps Massachusetts moving forward.

Lyft Executive Vice President of Driver Experience, Jeremy Bird, expressed his enthusiasm: “This is a huge win for Massachusetts drivers that secures their freedom to earn when, where, and however long they want. On any given day, flexible work on the Lyft platform provides an average of 8,500 drivers in Massachusetts the independence to earn while attending school, caring for loved ones, chasing dreams, or providing for their family. Rideshare is truly part of the economic and social fabric of the Commonwealth. We’re thrilled to reach an agreement that works for everyone and builds on similar progress we’ve made in states like New York, California, Minnesota, and Washington.”