BOSTON - The State of New York recently came to a settlement with Uber requiring more benefits and minimum wage offered to drivers. Uber hopes that this framework will also work for Massachusetts, as the state Legislature may likely discuss options soon.
What You Need To Know
- New York reached a settlement with Uber recently requiring some changes to how they pay employees
- In New York, drivers will make a minimum wage, while also earning sick time
- Drivers can keep independent contractor status, and Uber will have to pay into New York's unemployment insurance
- Uber hopes that the New York settlement could be a good baseline for Massachusetts
It's something Gov. Maura Healey has been an advocate of since her days as attorney general.
"That’s what the Attorney General in New York recognized is how important that flexibility [is]," said Josh Gold, a spokesperson for Uber. "What that deal meant [is] that drivers can work wherever they want, for as long as they want, with whomever they want - Uber, Lyft, Doordash, Instacart - but also a minimum wage in sick time."
The deal reached in New York is only for ride share services Uber and Lyft.
A big sticking point for Healey when she was the attorney general was that companies like Uber don’t pay into state benefits when they classify their employees as independent contractors. That impacts unemployment and tax collections.
If Massachusetts adopts what New York has agreed upon, drivers will make a minimum wage, earn sick time and the company will pay into unemployment, while also allowing drivers to work when they want without a schedule.
"I think that there is an opportunity here to make sure that the concerns of policy makers and government officials, as well as drivers and the concerns of the companies, are all taken into account," Gold said. "It’s happened in Washington. It’s happened in New York, and moving forward, I’m looking forward to it working in Massachusetts."
Such an agreement is still a long ways off for Massachusetts. Conversations over what works best in the commonwealth will likely pick up after the new year.