As part of the $175 million settlement between Uber and Lyft, the attorney general ruled that the companies will now pay drivers a minimum hourly wage of $32.50 during rides.

State prosecutors have agreed to a deal with Uber and Lyft that will require the companies to pay Massachusetts $175 million, raise driver wages and offer a range of new benefits, officials announced Thursday.

Attorney General Andrea Campbell’s office said her team reached a deal with the gig economy giants that resolves a 2020 lawsuit filed by her predecessor, current Gov. Maura Healey, alleging that Uber and Lyft had violated state labor laws.

The agreement will require Uber to pay the state $148 million and Lyft to pay the state $27 million, most of which will be restitution to current and former drivers, Campbell’s office said.

The companies also agreed to begin paying drivers at least $32.50 an hour for time spent traveling to pick up passengers and transport them to their destinations, which Campbell’s team said is “the first time the tens of thousands of Uber and Lyft drivers in Massachusetts will be guaranteed a minimum wage.”

As part of the deal, Uber and Lyft agreed not to campaign or fund the referendum question they have sought for years, which would rewrite state law in their favor by defining drivers as contractors independent.

Uber and Lyft officials confirmed that the companies would withdraw their support for the measure, which survived an eligibility challenge before the state’s highest court on Thursday.

It’s unclear whether other companies that supported the ballot question and weren’t involved in the attorney general’s lawsuit or settlement — particularly DoorDash and Instacart — intend to move forward and put the measure before voters.

This is a developing story and will be updated.

This article was originally published on June 27, 2024.