The Next Battleground for Gig Worker Labor Laws: Massachusetts

Lower than two years after a fierce election struggle in California, gig corporations like Uber and Lyft are once more colliding with labor teams, politicians and the courts over a poll measure in Massachusetts that might protect the impartial standing of drivers for the businesses.

The Massachusetts proposition would assure staff a minimal wage however restrict their entry to different advantages provided to common staff, much like the poll measure in California. And as in California, state judges may thwart the multimillion-dollar marketing campaign being waged by gig corporations.

A Massachusetts courtroom has questioned whether or not the gig-work proposition violates state regulation, and there’s a likelihood the November poll measure might be thrown out this summer season.

The battle comes as state politicians from Massachusetts and different states ratchet up the strain on ride-hailing and food-delivery corporations whereas calling for a broader reassessment of whether or not the gig financial system exploits those that work in it.

On Wednesday, 5 U.S. senators and three members of the Home, together with a number of from Massachusetts, despatched letters to varied gig corporations, criticizing them for what the lawmakers say is their follow of misclassifying staff as impartial contractors. The lawmakers are additionally demanding that the businesses launch detailed studies describing the hazards that drivers face after a report from Gig Employees Rising, an advocacy group, discovered that not less than 50 have been killed on the job within the final 5 years.

Uber and Lyft have every launched studies on assaults and different critical incidents that occurred on their platforms, however the lawmakers, who’re asking for a response by June 22, are calling for extra particulars, in addition to for corporations like DoorDash to do the identical. In addition they wrote that they wished details about whether or not the gig corporations compensated drivers who had been attacked or helped their households with funeral providers and different prices.

Lawmakers stated an absence of security for drivers and their impartial contractor standing had been associated.

“Drivers are solely put at better danger as a result of they’ve low pay, low wages, that pushes them to work longer hours and that pushes them to just accept extra rides, even after they really feel unsafe,” Consultant Ayanna Pressley, Democrat of Massachusetts, stated in an interview.

In an announcement, a DoorDash spokeswoman stated the letter made “deceptive and inaccurate claims.” Instacart stated it was “carefully reviewing” the letter and would reply. Each corporations, in addition to Lyft, stated they had been dedicated to retaining their drivers secure.

Gig corporations spent $200 million combating for his or her drivers to be categorised as impartial contractors in California. The battle began in 2019 when California handed a regulation requiring corporations like Uber and Lyft to deal with their drivers as staff. The state’s legal professional common later sued the gig corporations to implement it, they usually responded by threatening to depart the state.

The 2020 poll measure, Proposition 22, handed with about 59 % of the vote, that means gig drivers would stay impartial contractors. However final yr, a California decide threw out the brand new regulation. That case is pending an attraction.

Ms. Pressley argued that the Massachusetts poll measure was a method for gig corporations to save cash by avoiding giving their drivers extra money and advantages like well being protection. “All of that is finally a prioritization about revenue over individuals,” she stated.

Proponents of the poll measure say it will as a substitute make sure that staff obtained a good minimal wage and a few advantages whereas sustaining drivers’ means to decide on after they labored. Below the proposal, the drivers would make not less than $18 per hour whereas actively delivering meals or ferrying passengers.

It will additionally give restricted advantages, like a per-mile charge for automobile prices, accident insurance coverage, paid sick time and well being care stipends for staff who spent a sure variety of hours driving. Gig corporations wouldn’t have to offer unemployment insurance coverage, staff’ compensation, paid day without work or another well being care funds.

Conor Yunits, who’s main the Massachusetts Coalition for Impartial Work, the marketing campaign in assist of the poll measure, stated many drivers didn’t need to be categorised as staff as a result of that might restrict their means to set their very own hours.

“It’s about their lives, about having flexibility, the flexibility to be their very own bosses, set their very own schedules,” stated Mr. Yunits, senior vice chairman at Points Administration Group. “The actual fact is, drivers assist this. Finally, we imagine voters will assist this.”

Opponents of the poll measure notice that drivers can be compensated at that price solely whereas finishing a activity and never whereas ready for his or her subsequent rider. Factoring in that lag time, one examine has estimated drivers may make solely $5 to $7 per hour. (Mr. Yunits referred to as the examine “pure marketing campaign propaganda.”)

Opponents additionally say drivers ought to already be receiving advantages given to staff. In 2020, Maura Healey, Massachusetts’ legal professional common, sued Uber and Lyft in an effort to drive them to acknowledge their drivers are staff below state regulation. That lawsuit is pending in courtroom.

If the poll measure overcomes opposition from distinguished unions and politicians in Massachusetts, a staunchly pro-labor state, it may embolden the gig corporations to proceed their state-by-state method to codifying their guidelines for drivers.

“We’re gearing up for the struggle,” stated Wes McEnany, who leads Massachusetts Is Not for Sale, a marketing campaign opposing the proposal.

The talk may quickly be moot. In Might, the Massachusetts Supreme Judicial Court docket heard arguments from a gaggle suing to cease the poll measure, and expressed considerations that the gig corporations had been making an attempt to sneak a seemingly unrelated rule previous voters.

A piece of the proposed poll measure says drivers are “not an worker or agent” of the gig corporations. The measure’s opponents say which means corporations like Uber try to make sure they can’t be held accountable for the actions of their drivers in accidents or crimes.

Below state regulation, if the courtroom finds that one part of the measure is unrelated to the remainder of it — because it indicated it’d in the course of the listening to in Might — it may well throw out the poll proposal.

Voters “could have completely completely different views about whether or not a gig employee ought to have all these advantages versus whether or not they can sue the corporate if there’s an accident or a rape,” Decide Scott Kafker, an affiliate justice, stated in the course of the listening to. “These are very completely different points, aren’t they?”

A lawyer defending the poll measure argued that these points each involved a employee’s relationship with an organization and had been associated.

A courtroom choice is anticipated in late June or early July. It’s additionally doable that the State Legislature may go a regulation much like the poll measure within the coming months, making a vote in November pointless, although that prospect seems unlikely.

If the courtroom permits the poll measure to be put to voters, the proponents may have some benefits. Uber, Lyft, DoorDash and Instacart raised $17.8 million to again the poll measure final yr, in line with the state’s Workplace of Marketing campaign and Political Finance, which hasn’t launched totals for 2022. Most of that was a $13 million Lyft contribution in December, which seems to be the most important single political contribution in Massachusetts historical past.

Massachusetts Is Not for Sale raised lower than $1 million final yr. The group stated it had discovered from the California struggle that voters might be confused by the trivialities of an advanced poll measure about impartial contractors, so a giant focus of the marketing campaign will likely be arguing that massive tech corporations try to rewrite state legal guidelines.

“California needed to go first and acquired caught a bit flat-footed,” Mr. McEnany stated. “I feel we have now the hindsight, taking a look at California and having the ability to see it coming, we had been capable of construct a coalition loads earlier.”

Gig corporations say in addition they have drivers on their aspect. The Massachusetts Coalition for Impartial Work cites a survey of about 400 Massachusetts drivers this yr, paid for by the gig corporations, during which 81 % backed the poll measure.

The surveyed drivers had been advised {that a} sure vote would classify drivers as impartial contractors, reasonably than staff, and supply new advantages, and {that a} no vote would keep the established order.

Opponents say that drivers are being misled, and that they may each keep versatile schedules and obtain greater pay and advantages in the event that they had been categorised as staff.

“This half-measure will not be sufficient,” stated Senator Edward J. Markey, Democrat of Massachusetts, who signed the letters to gig corporations about employee security. “The reply is to categorise these staff as staff and pay them a residing wage and provides them actual advantages.”