Uber, Lyft Reach Deal With Massachusetts on Driver Benefits (1)

Uber Technologies Inc. and Lyft Inc. agreed to a series of worker benefits to resolve a longstanding state lawsuit in Massachusetts that challenged drivers’ employment status as independent contractors, putting a stop to the companies’ bid to take the issue before voters in November.

The companies also will pay a combined $175 million to the state to settle allegations they violated Massachusetts wage and hour laws, state Attorney General Andrea Campbell said Thursday in a statement. Most of the funds will be distributed as back pay to current and former drivers who were underpaid by the companies, she said. ...