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Rideshare drivers in Massachusetts will soon get company-provided benefits, as well as a minimum pay of $32.50 per hour, starting on August 15th. That\u2019s thanks to a new settlement<\/a> between the state and rideshare companies Uber and Lyft, four years after Attorney General Andrea Campbell sued the companies<\/a>, asserting their drivers ought to be considered employees under state law. <\/p>\n<\/div>\n The two companies also agreed to pay a combined $175 million, the bulk of which will be paid out to \u201ccurrent and former drivers who were underpaid by the companies,\u201d Campbell\u2019s office announced yesterday<\/a>. The office says it will release details about who qualifies and how to apply \u201cin coming weeks.\u201d Despite the settlement and the original thrust of the suit, drivers will still be considered independent contractors. <\/p>\n<\/div>\n Still, 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. Uber and Lyft will also give drivers stipends so they can buy healthcare and sign up for the state\u2019s family and medical leave program, and will cover work-related injuries.<\/p>\n<\/div>\n To ensure they\u2019re complying with the agreement, the companies have to carry out annual audits and submit reports to the Attorney General\u2019s office. Punishment for violations could include \u201cany applicable restitution, fines, and penalties,\u201d according to the published settlement<\/a>.<\/p>\n<\/div>\n