Andrea Joy Campbell v. Uber Technologies, Inc., et al

Case Background

On July 10, 2020, Plaintiff Andrea Joy Campbell, in her official capacity as Attorney General for the Commonwealth of Massachusetts, filed a Class action lawsuit in the Commonwealth of Massachusetts Superior Court, Suffolk County(Case number: 2084CV01519).

Cause

The Attorney General for the Commonwealth of Massachusetts filed a complaint against Uber Technologies, Inc., and Lyft, Inc., alleging the companies misclassified their drivers as independent contractors instead of employees. Uber and Lyft operate as transportation network companies (TNCs), connecting riders with drivers through mobile apps. The companies required drivers to comply with non-negotiable service agreements, which imposed unilateral terms. According to the Attorney General, Uber and Lyft used these agreements to deny drivers employee rights, including minimum wage, overtime pay, and earned sick leave. The complaint argued that drivers met the criteria for employee classification under Massachusetts labor laws.

Injuries

The misclassification financially harmed drivers, forcing them to cover unreimbursed business expenses such as vehicle maintenance, fuel, and insurance. These costs effectively reduced their earnings, often leaving them with less than Massachusetts’ minimum wage. Additionally, drivers lacked access to critical employee benefits like paid sick leave. This deficiency posed heightened risks, especially during public health crises, and violated driver rights under Massachusetts law.

Damages

The Attorney General sought damages for wage and hour law violations. These included unpaid wages, overtime compensation, and other benefits owed under Massachusetts labor laws. The damages also encompassed the loss of earned sick leave and the financial burden drivers faced due to misclassification. Drivers bore business-related expenses improperly shifted onto them by Uber and Lyft.

Key Arguments and Proceedings

Legal representation

  • Plaintiff(s): Andrea Joy Campbell, in her official capacity as Attorney General for the Commonwealth of Massachusetts
    • Counsel for Plaintiff: Matthew Q. Berge | Douglas S. Martland | James A. Sweeney | Peter N. Downing | Trini Gao | Meryum Z. Khan | Jessica Rahmoune | Sean P. Attwood
  • Defendant(s):Uber Technologies Inc. | Lyft Inc.
    • Counsel for Defendants: Stephen T. Melnick | Theane Evangelis | Perlette Jura | Heather Richardson | Michele L. Maryott | Blaine H. Evanson | Jeremy M. Christiansen | Felicia H. Ellsworth | Andy O’Laughlin | Kelly P. Dunbar | Robin C. Burrell | Ronit K. Singla || Justin P. Raphael

Claims

The Attorney General pursued declaratory and injunctive relief, asserting that Uber and Lyft violated Massachusetts labor laws. Claims included misclassification under the Independent Contractor Misclassification Statute, failure to pay minimum wage and overtime, denial of earned sick leave, and violations of anti-retaliation protections. The Attorney General requested a court declaration affirming that Uber and Lyft drivers were employees and sought an injunction requiring the companies to reclassify their drivers.

Defense

Uber and Lyft argued that their drivers were independent contractors under Massachusetts labor laws. They emphasized that drivers exercised significant autonomy, choosing their schedules, accepting or rejecting rides, and using their own vehicles. Uber and Lyft maintained that they merely provided a digital platform connecting riders and drivers, claiming this aligned with the independent contractor model.

The companies argued that drivers operated as entrepreneurs, free from direct control, and were not integral to their core operations, which they described as technology services rather than transportation. Uber and Lyft highlighted the flexibility and earning potential their platform offered, stating that drivers voluntarily agreed to the terms in the service agreements. The companies denied any wage and hour law violations and asserted compliance with Massachusetts labor laws.

Settlement

On June 27, 2024, Massachusetts Attorney General Andrea Joy Campbell announced a settlement with Uber and Lyft. Under the agreement, drivers received a guaranteed minimum pay of $32.50 per hour for time spent traveling to pick up and transport riders, with annual inflation adjustments. Uber paid $148 million, while Lyft contributed $27 million to the state, with most funds distributed as restitution to current and former drivers.

Drivers gained paid sick leave benefits, earning one hour for every 30 hours worked, capped at 40 hours annually. The companies updated their apps, enabling drivers to view and claim sick leave directly. Both Uber and Lyft provided drivers with stipends to join the state’s paid family and medical leave program and offered occupational accident insurance coverage up to $1 million for work-related injuries.

Uber and Lyft also agreed to improve transparency and support for drivers. They committed to displaying trip details, destinations, and earnings estimates before ride acceptance. After trips, drivers received detailed pay breakdowns. To protect driver rights, the companies prohibited discrimination based on protected characteristics and retaliation against drivers who filed complaints or sought benefits under the settlement.

Further enhancements included in-app live chat support available in English, Spanish, Portuguese, and French. Uber and Lyft introduced an appeals process for deactivation and pledged to conduct annual audits to ensure compliance with Massachusetts labor laws. These measures aimed to strengthen driver protections and address wage and hour law violations while fostering transparency and fairness.

Court Documents:

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