A lot has changed for Massachusetts’ Uber and Lyft drivers over the past year.
A settlement with the state attorney general’s office in June 2024 resulted in the companies agreeing to minimum pay — currently more than $33 an hour — and planning to issue checks to drivers who were underpaid for prior work. The minimum wage has been in effect for a full year, and the restitution payments are expected this fall. But drivers say these changes aren’t all good news.
“I found that after the settlement, there was a mass influx of drivers and trying to find rides was a lot more difficult,” said Ed Booth of Boxborough.
Booth said he used to make $45 to $50 an hour on busy weekend shifts, but he quit working for the rideshare apps in January after that takeaway dropped due to the increased competition. He said driving was “just not worth it anymore.”
Matt, who did not want to share his last name out of fear it would affect his job prospects, said he’s also experienced lower tips from riders. He believes that’s because they assume he’s now fairly compensated thanks to the new minimum.
“You got to remember that we are paying for the entire vehicle, all the costs: maintenance, fuel, our own insurance,” he said. “All of these things add up.”
Sergio Avedian, a senior contributor for a blog called the Rideshare Guy, agreed the new standard has led to more people driving for Uber and Lyft. But he said while that’s decreased bookings and earnings for prolific drivers, the minimum wage gives more casual drivers an extra layer of security.
“For what the job is, I think it’s pretty fair,” Avedian said. “It’s a job with flexibility. You can turn the app on. You will get something at any time of the day.”
Uber didn’t return requests for comment for this story. Lyft said in a press statement that the company was proud to offer minimum hourly pay.
“The Massachusetts minimum earnings standard has been a huge win for drivers, ensuring guaranteed pay while protecting the flexibility they value most,” Lyft’s media team said.
In an emailed statement, Attorney General Andrea Campbell called the settlement “nation-leading to hold Uber and Lyft accountable.” She noted that in addition to minimum pay, drivers now also get benefits including earned sick time and stipends for health insurance and paid leave.
“I am glad that as part of our settlement, tens of thousands of drivers will soon receive restitution checks to account for prior underpayment,” she wrote. “I will continue to advocate for all workers in Massachusetts to ensure their economic dignity and adequate wages and benefits for themselves and their families.”
Drivers who are eligible for restitution payments should have received a letter or an email from Rust Consulting, its settlement administrator. Drivers have until the end of August to inform Rust of address changes or request more information. The attorney general’s office said payments will be distributed this fall.
The amount received is based on a formula set by Campbell’s office that accounts for miles driven. Booth said he’s read on Facebook that some drivers are getting anywhere between $500 to $8,000, depending how much they drove during the settlement time period from July 2020 to July 2024. He said he is getting a “decent amount,” but declined to provide the dollar amount. He also expressed skepticism that the restitution payments would be fair.
“All us drivers use mile-tracking apps because Uber and Lyft did just such a shoddy job of tracking your miles,” he alleged. “They would give you your mileage at the end of the year. And it would be like a third of what you’ve actually driven.”
Matt said he’s happy with the $1,600 payment he’s receiving, but he still wants Campbell’s office to provide more information about how the formula works. He said he didn’t expect to receive any money and knows other drivers who are getting less than they anticipated.
“There’s no way for a driver to check for accuracy. There’s no way to for a driver who was not given compensation to understand why,” he said. “This is a public settlement. This should be as transparent as possible.”
