06:16 AM EDT, 06/28/2024 (MT Newswires) -- Massachusetts said Friday that it has reached a $175 million settlement and secured a pay raise for drivers to resolve a years-long case against Uber ( UBER ) and (LYFT) for alleged violations of labor laws.

The two companies must pay drivers a minimum of $32.50 per hour and grant them several benefits and protections, including paid sick leave, occupational accident insurance, pooled access to health insurance, and health care stipends, a statement said.

Attorney General Andrea Joy Campbell's office said "a substantial majority" of the $148 million paid by Uber ( UBER ) and $27 million paid by Lyft ( LYFT ) will be distributed to current and former drivers as restitution.

The settlement also halts the companies' effort to place a ballot initiative in 2024 to bar a minimum wage for their drivers.

Uber ( UBER ) and Lyft ( LYFT ) did not immediately reply to MT Newswires' requests for comment. In separate statements published by The New York Times, both companies praised the settlement as a win for drivers.

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