Tuesday, Massachusetts It became the second state this year to sue the Uber and Lyft companies for treating their drivers as independent contractors rather than employees. State attorney general Maura Healey told reporters that the Covid-19 pandemic prompted her to ask a state court judge to enforce a 2004 labor law to reclassify drivers.
“What the Covid pandemic has shown is how many people are employed in the concert economy who apparently lack very basic protections and benefits,” Healey said.
“Concert companies” like Uber, Lyft, Instacart and DoorDash say their workers are contractors, essentially each their own small business owner, and that companies are simply intermediaries between workers and passengers or buyers. As a result, companies generally have not provided benefits such as paid sick leave, time off, or overtime, and do not pay in unemployment insurance programs.
The lawsuit opens up another front in the labor fight over Uber and Lyft, which have battled workers during qualifying for years. In May, the state of California and three of its largest cities sued to classify Uber and Lyft drivers in that state as employees. The state legislature passed a law aimed at lowering the definition of independent contractors last fall.
Massachusetts law, which has been on the books for 16 years, created a three-part test to determine whether a worker is an employee or a contractor. To be a contractor, a worker must do her job without the direction or control of the employer; perform work that is outside of the employer’s “usual course” of business; and do the work they would do for other employers, too. Labor experts say it will be difficult for passenger drivers to pass that test, particularly the second part.
In a statement, a Lyft spokesperson said more than 50,000 people drive for the company in Massachusetts, and that 89 percent of Lyft drivers drive for less than 20 hours per week. Those drivers “choose to drive rides precisely because of the independence it gives them to earn money in their spare time,” the spokesperson said.
A Uber spokesman said the company will dispute the lawsuit, “as it opposes what the vast majority of drivers want: to work independently.” We are ready to work with the state to modernize our laws so that freelancers receive new protections while maintaining the flexibility they prefer. ”
The Massachusetts lawsuit argues that Uber and Lyft drivers are not free from the companies’ control because their service agreements and payment structures are non-negotiable, although they are subject to frequent change. State attorneys also argue that drivers face repercussions for canceling or rejecting travel requests, or for failing to rate poor passenger ratings.
Healey said Tuesday that by classifying workers as contractors, “responsible taxpayers and employers pay the bill when their workers need unemployment or workers’ compensation.” Gig workers are eligible to receive $ 600 a week in unemployment benefits under a federal coronavirus relief law, but that provision expires at the end of the month. A bill to renew it was passed by the House of Representatives, but it is unlikely to become law.
In California, Uber has undergone app changes in an attempt to demonstrate that the company does not control or direct drivers. (The state uses a three-part test very similar to the one used by Massachusetts.) The company’s app is now less likely to penalize drivers for refusing trips. Drivers across the state can choose the rate they will accept for each trip, essentially competing against other drivers for a trip.
In November, California voters will have an opportunity to speak on the issue. A company-sponsored statewide ballot measure would invalidate the state’s new labor law and create a new job category for concert employees. Uber, Lyft, DoorDash and Instacart have dedicated at least $ 110 million to support the election campaign.
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