Rideshare drivers will soon get their share of $175 million in restitution

Due to a settlement the state attorney general’s office made with the rideshare companies last year, tens of thousands of Massachusetts Uber and Lyft drivers could soon start getting cheques in the mail.

In total, drivers will receive about $175 million in compensation. Lyft paid $27 million, while Uber paid $148 million. From July 2020 to July 2024, the majority of drivers who traveled more than eight miles each week are eligible for reimbursement.

In an attempt to guarantee drivers a minimum salary, the Attorney General’s Office pursued legal action against the corporations for years. Checks will be issued to current and former drivers who were underpaid by the companies.

To manage the payments, the office of Attorney General Andrea Campbell engaged Rust Consulting as the settlement administrator. On August 1, Rust started notifying qualified drivers via email and mail. According to Campbell’s office, those who have gotten letters are expected to get their checks in the early fall and are not required to take any additional action.

Drivers may need to update their information in order to be paid if they recently changed their email address or physical address. Rust has a dedicated webpage for this settlement that contains information on how to proceed as well as other details. The deadline for drivers to alter their residences is August 31.

A formula established by Campbell’s office will determine how much drivers receive. Drivers who were paid less than the minimum wage after deducting expenditures like petrol should receive the highest payouts, as this formula is intended to provide some reparation to all non-casual drivers.

According to The Boston Business Journal, cheques should be sent to over 70,800 drivers.

As a result of the settlement, drivers are now paid at least $33.48 per hour for the time they spend traveling to pick up and transport passengers. This will rise by 3% a year, or the inflation rate. Additionally, the agreement promised access to a health insurance stipend, paid sick leave, and occupational accident insurance.

Voters in Massachusetts allowed rideshare drivers to form a union last year. With 70,000 members as of right now, the new App Drivers Union is a key force in the opposition movement against the state’s introduction of autonomous vehicles.

Since 2022, Ross Cristantiello has been a general assignment news correspondent for Boston.com, covering a variety of topics such as local politics, crime, and the environment.