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Boston's Morning Newsletter
3 things to know about Massachusetts' $175 million deal with Uber and Lyft
Editor's Note: This is an excerpt from WBUR's daily morning newsletter, WBUR Today. If you like what you read and want it in your inbox, sign up here.
It’s almost the weekend. What better time to check out our new Day Trips in Massachusetts guide. From Cape Cod to central Mass. to the Berkshires, the list includes curated recommendations for all types of day trippers (nature-lovers, foodies, etc). It’s a great link to bookmark for those weekends when you’re looking for a new adventure.
Keep an eye out for more day trip guides to other New England states (cough, Maine) in the days to come. Now, to the news:
Settlement stunner: Uber and Lyft will pay Massachusetts a combined $175 million to settle a years-long legal fight, pledging to raise driver wages and shaking up this fall’s slate of ballot questions. Attorney General Andrea Campbell announced the deal last night. It settles a lawsuit first filed in 2020 by AG-turned-Gov. Maura Healey, alleging rideshare companies were misclassifying drivers as independent contractors rather than employees under state labor law — and were thus denying them protections like minimum wage and paid sick time. Here are three things to know about the deal:
- No more ballot question: That complicated ballot question about app-based drivers and how they’re classified under state labor law? No longer happening! The settlement resolves the classification dispute. The group behind the proposed ballot initiative, Flexibility and Benefits for Massachusetts Drivers, said they’re “no longer moving forward” with what was expected to be a bruising, expensive campaign. According to a spokesman, the group won’t submit the final round of signatures for ballot campaigns, which are due next week. The decision came just hours after the state’s top court rejected a legal challenge against the initiative and a separate question to allow app-based drivers to unionize. (Backers of the unionization question say they’re still planning to move forward.)
- A new minimum wage: Beginning on Aug. 15, Uber and Lyft drivers in Massachusetts will earn a minimum wage of $32.50 per hour. That rate comes with a big asterisk — it only applies to the time spent on the way to a pickup and during a ride (so time spent waiting for a ride request does not count). As part of the deal, Uber and Lyft also agreed to give certain drivers stipends for health insurance, paid sick time and accident insurance.
- What happens to that $175 million? Most of it will go to current and former rideshare drivers to make up for being “underpaid,” according to Campbell’s office. The AG plans to announce more information in the “coming weeks” about who qualifies for the money and how to file a claim.
No deal: Health care company Optum is walking away from the proposed deal to purchase the Steward Health Care’s doctors group, according to The Boston Globe. The two companies had been in talks for the sale as part of Steward’s effort to climb out of its deep financial hole.
- The big picture: Here are five things to know about Steward’s ongoing bankruptcy process.
Dance the night away: Whether you missed last night’s Donna Summer Disco Party or just want to keep the good vibes going, there’s another opportunity to lace up those dancing shoes tonight. The City of Cambridge is hosting its free annual City Hall dance party from 6 p.m. to 10 p.m. Thousands of people will be looking like they’re straight out of the Barbie movie, the same way they have (almost) every year since the event first started in 1996. Matt Nelson, a Cambridge city official who organizes the event, told WBUR simplicity is what makes the event special: “All we’re doing is closing a road, hiring some DJs and putting on a light show.”
- Beep beep: Drivers should maybe try to avoid Central Square tonight. Mass. Ave will be closed between Lee Street and Prospect Street.
Heads up: The northern end of the Red Line is shutting down this weekend. That means shuttles between Harvard and Alewife this Saturday and Sunday — or you can take the commuter rail from Porter Square to North Station for free. The 77 bus, which runs from Arlington to Harvard Square, will also be free for the weekend.
- But wait, there’s more: Outbound Red Line trains will bypass Kendall/MIT starting tonight at 8:45 p.m. through Sunday. It’s due to construction work that includes renovating the station’s outbound entrance.
P.S.— Why did Healey send a delegation to Texas this week? Take our Boston News Quiz and see how well you know the recent stories we covered compared to other WBUR readers!
