Posts tagged Uber
Freelancers sue over new rules on independent contractors
July 8, 2024 // “It really coerces a lot of companies to try to put people, put workers in the employee box just so that they can be sure that they have their bases covered,” says Wen Fa, an attorney and vice president of legal affairs at the Beacon Center of Tennessee, a nonprofit think tank that advocates for individual rights and free market public policies. “Ultimately, what we’re fighting for is the right to freelance.” Fa is representing Margaret Littman and Jennifer Chesak — Nashville-based freelance writers and authors whose bylines collectively include The Washington Post, Men’s Health, National Geographic, and Condé Nast Traveler.
Commentary: The Big Fear? A Real Rematch
July 6, 2024 // Just a few hours after the court’s ruling dropped late last week, allowing both ballot measures to proceed, the Massachusetts attorney general made an announcement of her own. She agreed to a deal that will let Uber and Lyft drivers in Massachusetts remain independent contractors, with a minimum hourly wage of $32.50 and some benefits. Interestingly, the attorney general’s announcement noted that the deal averts giving the people of Massachusetts a chance to vote on the matter:
Gavin Newsom Wants to Curb a Labor Law That Cost Businesses $10 Billion
June 12, 2024 // Newsom’s office has brought together the state’s powerful California Chamber of Commerce with the California Labor Federation to hash out a compromise over the Private Attorneys General Act, or PAGA, people familiar with the negotiations said. The law has cost big and small businesses $10 billion over the past ten years, according to one study, and is viewed by labor advocates as a model of worker protection.The negotiators are in a race against time: June 27 is the deadline to strike a measure from Californians’ November ballot that would give voters the opportunity to repeal the law. The Chamber of Commerce is negotiating on behalf of a broad alliance, which includes the billionaire owner of the Wonderful Company, Stewart Resnick, car dealership owners, Walmart and McDonald’s Corp., along with small businesses across the state. The business coalition committed more than $31 million to entities backing the ballot measure, including the signature-gathering effort and an advertising blitz.
Revised minimum wage law for delivery drivers moves forward in Seattle, set for full council vote
May 14, 2024 // The current law is “clearly not working,” Nelson said on Thursday. She said the new legislation is an “effort to reverse the bad outcomes caused by a flawed law and catalyzed by network companies imposing a new so-called regulatory fee, which caused a drop in customer orders, a drastic reduction in worker wages, and lost revenues for restaurants and other retail establishments.” Seattle’s citywide minimum wage for employees — delivery drivers are treated as independent contractors — is $19.97. Working Washington, a nonprofit that helped pass the original legislation in Seattle, released a report this week showing how the new ordinance would result in net pay of $13.17 per hour, due in part to expenses such as payroll taxes and mileage costs that drivers pay for on their own.
Fair pay for Uber drivers belongs on ballot, Massachusetts court suggests
May 7, 2024 // A group supported by Uber, Lyft, DoorDash and Instacart is promoting ballot initiatives that would establish that the companies’ drivers are contractors who are exempt from the state’s employment laws — which means that they aren’t entitled to minimum wages, overtime, paid sick leave, unemployment insurance or health benefits. Meanwhile, an initiative promoted by drivers would allow them to form a union and engage in collective bargaining. Both sides claim the other is trying to confuse voters and “logrolling” by combining unrelated provisions into one petition. The state attorney general’s office approved all the initiatives and found itself in the odd position of defending both sides in court.
Side Hustles in Focus as Gig Worker Laws Stir Uncertainty
May 1, 2024 // In the debate over the classification of gig workers, Massachusetts finds itself at the center of a legislative whirlwind, echoing a lengthy battle around California’s AB5 Gig-worker law. Proposals to reclassify Uber and Lyft drivers as employees rather than independent contractors have sparked heated discussions about labor rights and the unintended consequences of regulatory measures.
Seattle’s new minimum wage rule undermining delivery drivers
April 25, 2024 // It’s not just restaurant owners who are being squeezed. So are drivers. Drive Forward Seattle, an app-based driver advocacy group, recently surveyed its members on the impact of the rule. A DoorDash driver identified as Marvin said, “I went from making $300 a day during the weekends to making $80 a day and that’s on a good day. It takes over 2hr to even get one order.” A driver named Sally told the advocacy group, “90 percent of the customers don’t tip since the app changed. So, they have to go back onto the app after the delivery, if they even remember to do so, in order to tip. That’s a big thumbs down.” The pushback has been so strong that the Seattle City Council has mulled repealing the rule altogether. Unions, who have struggled to organize the delivery drivers, have pushed back against the potential repeal, arguing that the wage system is working as intended.
Minneapolis Is About To Kill Ride-Sharing
April 18, 2024 // Just last month, Seattle's disastrous attempt to enact a minimum wage for app-based food delivery drivers was in the news. The result was $26 coffees, city residents deleting their delivery apps, and drivers themselves seeing their earnings drop by half. Now, the Minneapolis City Council has decided to join the fray in the multifront progressive war against the gig economy—and this time, the outcome could be even worse.
Commentary: JOHN STOSSEL: Unions Wanted To Help Freelance Workers. Now They Lost Their Jobs
April 17, 2024 // Vox called the law “a big win for workers everywhere.” Ha! A few months later, Vox media layed off hundreds of freelancers. “They expected that all these companies were going to reclassify independent contractors as employees,” freelance musician Ari Herstand told me. “In reality, they’re just letting them go!” Herstand was dismayed to learn that when he wants other musicians to join him, he could no longer just write them a check. “I have to put that drummer on payroll, W2 him, get workers’ comp insurance, unemployment insurance, payroll taxes!” he complains. “I have to hire a payroll company.”
Stalled Labor Pick Julie Su Lets Herself Off the Hook for California’s Missing Billions
April 2, 2024 // California’s auditor notes that the U.S. Department of Labor has issued helpful “guidance” for state finance officials in “Unemployment Insurance Program Letter 05-24.” Flip over to the U.S. Department of Labor’s DOL 05-24 letter and you learn what Julie Su is up to. The DOL memo says a Covid-era agreement between the feds and state unemployment departments “required states to use the CARES Act funds ‘for the purpose for which the money was paid to the state’ and to ‘take such action as reasonably may be necessary to recover for the account of the United States all benefit amounts erroneously paid and restore any lost or misapplied funds paid to the state for benefits or the administration of the Agreement.” But how will the federal DOL know whether states took “such action as reasonably necessary to recover” the billions stolen by fraudsters? Because the states will tell them so, or, as the DOL put it in inimitable Orwellian language: “Applying state finality laws to the CARES Act UC programs means that, in many instances, the state will not need to take retroactive action to resolve monitoring findings.”