The Massachusetts Attorney General and rideshare companies Uber and Lyft reached an agreement on Thursday evening that will provide drivers with additional benefits while allowing them to retain their independent contractor status. The new agreement puts an end to an ongoing lawsuit over Uber and Lyft’s classification of app-based drivers as contractors. Under the agreement, the rideshare companies will provide minimum pay, sick leave, health care stipends, and other benefits to contractors.

The settlement follows a court victory earlier this week in which the rideshare companies and gig workers won approval for a ballot initiative that would put the question of worker classification before Massachusetts voters.

“The biggest winners from this week’s settlement agreement are the drivers, who get to keep the independent status they prefer while also securing better wages and benefits,” said Chamber of Progress CEO Adam Kovacevich. “This is yet another sign that the debate over gig work is settled. Over the past few years, we’ve seen voters and leaders in New York, Washington, California, and now Massachusetts acting to make gig work better instead of trying to end it.”

Last year in New York, AG Letitia James came to a similar settlement with Uber and Lyft allowing the continued classification of app-based drivers as contractors. In Washington State, lawmakers passed legislation granting rideshare drivers new benefits while maintaining their status as independent contractors. And in California, voters passed Prop 22, protecting the contractor status of gig workers.

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Chamber of Progress (progresschamber.org) is a center-left tech industry policy coalition promoting technology’s progressive future. We work to ensure that all Americans benefit from technological leaps, and that the tech industry operates responsibly and fairly.

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