Uber—Uber paid $148 million to settle Massachusetts driver underpayment claims
Uber paid $148 million (part of $175 million combined with Lyft) as restitution to Massachusetts drivers who were underpaid by the company. Most drivers who completed trips for Uber between July 14, 2020, and July 2, 2024 in Massachusetts are entitled to payment. Settlement requires Uber to pay drivers minimum of $32.50 per hour (increased to $34.48 effective January 15, 2026) for time spent traveling to pick up riders and transporting them to their destination. Drivers also receive guaranteed paid sick leave, earning one hour of sick pay for every 30 hours worked, up to maximum of 40 hours per year. The settlement preserves the flexibility of independent contractor model and avoids potentially negative decision on driver classification.
Scoring Impact
| Topic | Direction | Relevance | Contribution |
|---|---|---|---|
| Gig Worker Rights | -against | primary | -1.00 |
| Worker Rights | -against | primary | -1.00 |
| Overall incident score = | -0.221 | ||
Score = avg(topic contributions) × significance (high ×1.5) × confidence (0.59)× agency (compelled ×0.25)
Evidence (1 signal)
Massachusetts secured $148M from Uber for driver underpayment
Uber paid $148 million (part of $175 million combined with Lyft) as restitution to Massachusetts drivers underpaid by company. Most drivers who completed trips between July 14, 2020 and July 2, 2024 in Massachusetts entitled to payment. Settlement requires minimum $32.50/hour (now $34.48 as of January 15, 2026) for active time plus paid sick leave (1 hour per 30 worked, max 40 hours/year). Settlement preserves independent contractor model.