Uber Technologies Inc. and Lyft Inc. today settled a lawsuit with the attorney general in Massachusetts, which will include the companies agreeing to pay their drivers a minimum wage.

The $175 million settlement comes with a slew of benefits for drivers other than the $32.50 per hour minimum during driving time. The drivers will also be provided with accident insurance, paid sick leave, paid medical leave and a health insurance plan, while the money secured in the case will go to current and former drivers as well as state officials. Another bonus is drivers will receive benefits if they work a minimum of 15 hours combined for both or just one of the companies.

The settlement is the result of years of legal wrangling between the state and the firms. How people working in the gig economy should be treated by the companies they work for has been contested all over the world. In the U.S., there have been similar cases in which drivers received benefits following court rulings, including in California, New York, Washington State and just recently, Minnesota.

“For years, these companies have underpaid their drivers and denied them basic benefits,” Attorney General Andrea Campbell said in a statement. “Today’s agreement holds Uber and Lyft accountable and provides their drivers, for the very first time in Massachusetts, guaranteed minimum pay, paid sick leave, occupational accident insurance and health care stipends.”

Both Uber and Lyft today issued positive statements about the ruling, despite both companies together spending tens of millions of dollars on lobbying efforts to push back labor groups who’ve fought for better standards for people working in the gig economy.

“In taking this opportunity, we’ve resolved historical liabilities by constructing a new operating model that balances both flexibility and benefits,” said Uber Chief Legal Officer Tony West. “This allows both Uber and Massachusetts to move forward in a way that reflects what drivers want and demonstrates to other states what’s possible to achieve.”

Jeremy Bird, Lyft’s executive vice president of driver experience, said he was “thrilled” an agreement had been reached. “Rideshare is truly part of the economic and social fabric of the commonwealth,” he said.

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