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Uber just agreed to pay Massachusetts drivers $34.48 an hour, and it might be the cheapest deal the company has ever made. Here's the backstory. In 2020, Massachusetts sued Uber and Lyft, arguing drivers were employees under the state's ABC test, one of the strictest classification laws in the country. The case went all the way to a jury trial in 2024. Then, weeks in, both companies folded and wrote a $175 million check. Uber paid $148M, Lyft paid $27M. What did they buy? One sentence.…
Massachusetts Uber and Lyft drivers are now guaranteed at least $34.48/hour for time spent picking up and transporting riders, effective January 15, 2026, plus paid sick leave, health insurance stipends and other benefits under the state's $175M settlement.