Uber and Lyft $175M Massachusetts Driver Settlement

Uber Technologies Inc. and Lyft Inc.

Drivers who drove for Uber or Lyft in Massachusetts between July 14, 2020, and July 2, 2024, may qualify to claim a cash payment from a class action settlement.

Uber Technologies Inc. and Lyft Inc. have agreed to pay $175 million to settle a class action lawsuit brought by the Massachusetts Attorney General. The lawsuit alleged that the companies misclassified drivers as independent contractors, resulting in drivers being denied minimum wage, benefits, and other protections required under Massachusetts law.

The settlement provides financial restitution to eligible drivers and introduces new benefits and protections for current and future drivers in the state.

Who is eligible for an Uber or Lyft driver payout?

Drivers must meet the following criteria to qualify for a payment.

Individuals who completed at least one trip for Uber or Lyft using the driver app in Massachusetts between July 14, 2020, and July 2, 2024.

Drivers who worked for both Uber and Lyft may qualify for payments from both funds.

Drove more than eight miles per week during the covered period
Earned less than the state minimum wage after accounting for expenses

Drivers whose pay exceeded minimum wage after expenses may receive a lower reimbursement rate.

How much is the class action payment?

Pro rata cash payment: Each eligible driver will receive a payment determined by these factors:

Total miles driven by each driver during the covered period
Total earnings during the covered period
The amount each driver was paid below the minimum wage after accounting for expenses

Example payment calculations

If a driver drove 10,000 miles and was paid $0.10 per mile below the minimum wage after expenses, their payment would be $1,000 (10,000 miles x $0.10).
If another driver drove 2,000 miles and was paid $0.05 per mile below the minimum wage, their payment would be $100 (2,000 miles x $0.05).

Final payments will vary based on each individual’s driving and earnings history. Drivers who drove more miles and were paid less will receive larger payments, while those who drove less or were paid above the minimum wage may receive smaller payments or no payment at all.

No claim form required to receive compensation

Qualified drivers do not need to file a claim to receive payment. Individuals who received a letter or email from Rust Consulting do not need to take any further action.

Drivers that need to update their address must do so by Aug. 31, 2025. Individuals can update their address using the online address update form.

Drivers that did not receive a notice but believe they are eligible, should contact the settlement administrator at 888-562-1052 or info@UberLyftMASSAGOSettlement.com

Payout options

Payments to eligible drivers will be sent by check to the address on file.

$175 Million Lyft and Uber settlement fund

The $175,000,000 settlement fund of $175 million will include

Uber restitution payments: At least $118.4 million for Uber drivers
Lyft restitution payments: At least $21.6 million for Lyft drivers
Settlement administration costs: To be determined
Attorney General discretion: The Attorney General may allocate remaining funds for other purposes permitted by law

Important dates

Driver settlement notices sent: Aug. 1, 2025
Deadline to update driver address for payment: Aug. 31, 2025

When is the Uber and Lyft Massachusetts settlement payout date?

According to the settlement website and Massachusetts Attorney General, payments are expected to be issued to eligible drivers by early Fall 2025.

Why was there a class action lawsuit and settlement?

The Massachusetts Attorney General filed a lawsuit against Uber and Lyft in 2020, alleging that the companies misclassified drivers as independent contractors rather than employees. The lawsuit claimed that this misclassification resulted in drivers being denied minimum wage, paid sick leave, health benefits, and other protections required under Massachusetts law.

After several years of litigation and a trial, the parties reached a settlement on June 27, 2024, to resolve the claims and provide restitution to drivers.

In addition to driver monetary payments, the settlement requires Uber and Lyft to implement new benefits and protections for drivers, including:

A minimum earnings floor of $32.50 per hour, increased to $33.48 per hour as of Jan. 1, 2025, for engaged time
Guaranteed paid sick leave: one hour for every 30 hours worked, up to 40 hours per year
A paid stipend to buy into the state’s paid family and medical leave program
Access to a pooled health insurance benefit for drivers working more than 15 hours per week
Occupational accident insurance paid by the companies for up to $1 million in coverage for work-related injuries
Enhanced transparency regarding pay and trip information
Protections against discrimination and retaliation
In-app chat support in multiple languages
A deactivation appeals process