Posts tagged DoorDash

    California: Court ruling opens door to gig driver unionization bill, union says

    March 28, 2023 // Last Monday, a California appeals court ruled that Proposition 22 — a 2020 ballot measure that allowed Uber, Lyft, and other platforms to classify their workers as independent contractors rather than employees — was largely constitutional, reversing much of a lower court ruling. But the court found that one part of the proposition wasn’t valid. It’s a part that defined legislation on certain subjects, including unionization for app-based drivers, as amendments to the proposition. And amendments, the proposition declares, need to pass by a seven-eights majority vote of the Legislature. That super, super, super-duper majority is a steep climb.

    California Court Rebukes War on Workers

    March 16, 2023 // This obviously poses an existential threat to emerging app-based companies that rely on a contractor model, but it also posed an entirely predictable threat to many traditional professions where workers eschew the 9–5 cubicle or factory floor work model. When the Legislature codified Dynamex via Assembly Bill 5, which went into effect in January 2020, it exempted many industries — primarily those with the most influential lobbies. Nevertheless, economic destruction ensued. Companies eliminated jobs rather than hire people as salaried employees. Publications — including Vox, which ran a piece championing AB 5 — laid off its California stringers. Musical groups that relied on gig workers had to shutter their operations. All types of freelance workers — from photographers to sign-language interpreters to rabbis — suddenly found themselves in a pickle. The same Gov. Gavin Newsom who used his vast executive powers to suspend laws during the COVID pandemic refused to suspend AB 5, even as people who were forced to stay at home lost their stay-at-home freelance opportunities. Some Californians embraced the workaround of starting an LLC, but that imposed new costs on workers who already were struggling. Dynamex Operations West v. Superior Court of Los Angeles

    California: Uber, Lyft Can Treat Drivers as Contractors, Court Rules (1)

    March 15, 2023 // “We agree that Proposition 22 does not intrude on the Legislature’s workers’ compensation authority or violate the single-subject rule, but we conclude that the initiative’s definition of what constitutes an amendment violates separation of powers principles,” the three-judge panel held. The court found the initiative violates the separation of powers principles by limiting lawmakers’ ability to enact amendments such as allowing gig workers to unionize. It severed that portion of the initiative and will “allow the rest of Proposition 22 to remain in effect, as the voters indicated they wished,” in a split victory for gig companies. The Protect App-Based Drivers and Services coalition that backed the initiative called the ruling “a historic victory for the nearly 1.4 million drivers who rely on the independence and flexibility of app-based work to earn income, and for the integrity of California’s initiative system.”

    Biden Wants To Restrict Work and Flexibility for Freelancers

    February 20, 2023 // Beyond these misunderstandings, there is a key question that PRO Act proponents have failed to directly answer: Over a dozen surveys—including the Bureau of Labor Statistics' Contingent Worker Supplement—have found that a majority of independent contractors would prefer their current arrangements over an employment arrangement. Workers cite dependent care obligations, personal circumstances, or a strong preference for job flexibility (over job stability) as the primary reasons. Beyond surveys, in a recent study published by the Journal of Political Economy, economists estimated that UberX drivers would require almost twice as much pay to accept the inflexibility that comes from adopting a taxi-style schedule. And for the top 10 percent of DoorDash drivers, losing flexibility is equivalent to a 15 percent pay cut. Sens. Mark Warner (D–Va.), Todd Young (R–Ind.), and Rep. Suzan DelBene (D–Wash.)

    How To Empower Millions of Independent Workers

    January 3, 2023 // Given millions of Americans' clear preference for independent work, and given the economic benefits of these arrangements, state and federal legislators should reduce the regulatory and tax burdens on both independent workers and gig platforms.

    Is the Uber, Lyft and gig economy battle over workers nearing its end game?

    October 17, 2022 // Proposed Department of Labor rules stop short of classifying Uber and Lyft drivers as employees. But the Biden administration’s pro-worker bias has analysts wondering what may come next in the battle over the gig economy and union momentum in the U.S. workforce. In a worst-case scenario, costs could rise as much as 30 percent for on-demand transportation companies just getting to break even, analyst says, and that means fares may rise as well.

    If You Like Your Uber, Can You Keep Your Uber?

    October 14, 2022 // Democratic administrations favor having fewer independent contractors and a standardized set of benefits. This gives more power to unions to organize workers. If Uber were the employer of all drivers, a union could ask Uber to support unionizing the labor force. It is practically impossible to organize independent contractors. Public sector unions made 90 percent of their contributions to Democratic candidates in the 2020 election cycle, according to OpenSecrets.com. With the share of wage and salary workers who belong to unions declining from 20 percent in 1983 to 10 percent in 2021, unions are under pressure to recruit more members to fund union officials’ salaries and member pension plans.

    Uber, Doordash plunge after Labor Department proposes change to gig worker classification

    October 11, 2022 // The Biden Labor Department released a proposal Tuesday that could make it possible for gig workers to be reclassified as employees, rather than contractors. The proposed rule sent stocks of gig companies like DoorDash, Lyft and Uber down. It comes after a court reinstated a Trump-era rule Biden’s Labor Department tried to block that would have made it easier to classify gig workers as contractors.

    Rideshare, retailers brace for tough U.S. independent contractor rule

    September 28, 2022 // The meetings at the White House were one-sided, with officials at OIRA letting groups speak and not participating or asking follow-up questions, several employer sources said. They are interpreting that as a sign the Biden administration's mind is made up. Some of the groups have been trying, and failing, to convince the White House that any broad rule would hurt workers who want to remain independent and have flexibility...More than one-third of U.S. workers, or nearly 60 million people, performed some sort of freelance work.