The Indian Independence Day will be remembered in the American driver’s circle!
Well, we wish that happens…with India winning its Independence on the day, there is something that American drivers won too. To know more, read the story below..
Massachusetts Paves the Way – Rideshare Drivers to Earn Minimum Wage, Benefits
This is because of the fact that post August 15th, Rideshare drivers in Massachusetts will soon get company-provided benefits, as well as a minimum pay of $32.50 per hour.
This comes post the new settlement between the state and rideshare companies Uber and Lyft, 4 years after Attorney General Andrea Campbell sued the companies, asserting their drivers ought to be considered employees under state law.
Campbell’s office announced yesterday that these 2 companies shall spend a sum of combined $175 million, majority of which shall go to the “current and former drivers who were underpaid by the companies”.
The release details as to who qualifies for the same as well as how to apply shall be available “in coming weeks.” In spite of this big announcement and the settlement, the original thrust of the suit, drivers will still be considered independent contractors.
In addition to this, the drivers in the state will get yearly inflation-based pay raises and other employee-style benefits, such as being able to earn up to 40 hours of sick leave a year, paid at $20 per hour.
Audits, Fines Ensure Driver Benefits, Block Similar Industry Efforts
Stipends shall be given to the drivers so that they can buy healthcare and sign up for the state’s family and medical leave program, and will cover work-related injuries.
In order to ensure that they are complying with the agreements, the companies carry out annual audits as well as submit reports to the Attorney General’s office.
As per the published settlement, the punishment for violations could include “any applicable restitution, fines, and penalties”.
The rideshare companies have mostly avoided being regulated this way in California after successfully persuading voters there to pass a 2020 law that exempted businesses from being required to treat gig workers as employees; that’s been winding its way through state courts.
The Massachusetts settlement accounts for that, requiring them to stop supporting a similar ballot initiative campaign. As per local reporting by WBUR, DoorDash and Instacart have also said they’re backing off.
