A California appeals court upheld most of Proposition 22, the 2020 ballot measure impacting gig workers. The decision — a victory for Uber and Lyft, among the companies spending upward of $200 million to support the measure — overturned a 2021 California Superior Court decision that found the proposition “unenforceable.” The Service Employees International Union, party to the lawsuit challenging Prop 22, is expected to appeal to the California Supreme Court, which may hear or reject the case at its discretion. Either way, that result can then be appealed to the U.S. Supreme Court. Continue reading California Upholds Most of Prop 22 in Win for Gig Companies

A proposed Massachusetts ballot initiative designating gig drivers as independent contractors was nixed by a state court that deemed it an attempt to avoid liability by companies like Uber and Lyft in the event of accident or crime. The Tuesday ruling effectively halted a $17.8 million campaign in support of a bill the Massachusetts Supreme Judicial Court said violates the State Constitution, with hidden language excepting drivers from being “an employee or agent” of a gig company. The move is the latest in a series of skirmishes between gig companies and local governments.  Continue reading Massachusetts Court Objects to Gig Worker Ballot Measure

Seattle’s City Council has unanimously passed the “Pay Up” bill, designed to improve working conditions and compensation for on-demand gig workers, increasing wages and mileage reimbursement for the region’s app-based labor pool. Beginning in 2023, apps including DoorDash, Grubhub and Uber Eats will be required to pay delivery drivers per-minute and per-mile rates, with the clock ticking the minute the drivers accept an order. Pay Up is the first step in Seattle’s ongoing effort to protect app-based workers, which one councilmember called “one of the fastest growing sectors in our economy.” Continue reading Seattle ‘Pay Up’ Legislation Created to Support Gig Workers

On May 6, the Biden administration rescinded the “Independent Contractor Rule,” created during the Trump administration, that made it easier to classify gig workers as independent contractors. The Department of Labor stated that withdrawing the rule would “maintain workers’ rights to the minimum wage and overtime compensation protections of the Fair Labor Standards Act.” Labor Secretary Marty Walsh added that the move will “stop the erosion of worker protections that would have occurred had the rule gone into effect.” Continue reading Labor Department Reverses Trump-Era Rule for Gig Workers

Uber has battled for years around the world against reclassifying its drivers as employees, which would force it to pay higher wages and benefits. In the United Kingdom, however, it just announced that it would reclassify its 70,000+ drivers as workers and provide them a minimum wage, vacation pay and access to a pension plan. Uber’s move comes in the wake of a unanimous British Supreme Court ruling that found Uber drivers deserved more protections. UK labor laws, however, offer a middle ground between freelancers and employees. Continue reading UK Supreme Court Rules 70,000 Uber Drivers Are Employees

In California, San Francisco Superior Court Judge Ethan Schulman confirmed Attorney General Xavier Becerra’s decision that Lyft and Uber are violating California Assembly Bill 5 (AB5). Schulman paused the injunction for 10 days to allow those companies to appeal his decision. AB5 requires that the two ride-hailing companies reclassify their California drivers as employees, making them eligible for healthcare and overtime among other perks. Due to COVID-19, Uber suffered a 67 percent decline in the June quarter. Continue reading California Judge Rules Uber and Lyft Are Violating State Law

Since the coronavirus outbreak, Uber’s business slumped between 60 and 70 percent. After saying in February that it expected to generate between $16 billion and $17 billion this year, the company now says it cannot forecast its revenue. D.A. Davidson senior research analyst Tom White said that, with regard to ride-sharing, “the whole country is going to be down 70 to 80 percent.” The coronavirus has also highlighted a crucial labor issue: whether ride-share drivers are considered employees or independent contractors. Continue reading Ride-Sharing Slumps, Leaving Uber and Lyft Drivers in Limbo

On Wednesday, California Governor Gavin Newsom signed Assembly Bill 5 (AB5), a law that will classify some independent contractors as employees and takes effect January 1. Companies such as Lyft and Uber Technologies, whose employees are among those that might be reclassified, redoubled both their resistance to the law and plans to negotiate again with relevant labor unions. At the same time, these companies are making noise about initiating a ballot-measure campaign to rewrite the standards for independent contractors. Continue reading Gig Economy Companies Responding to New California Law

The California State Assembly gave its final approval, in a 56-to-15 vote, for AB5, a bill that strikes a blow against the gig economy, forcing companies such as Lyft and Uber to treat contract workers as employees. The bill originally passed in the State Senate in a 29-to-11 vote and applies to all app-based companies. Governor Gavin Newsom, who endorsed the bill, is expected to sign it; the law will go into effect January 1. Uber has stated it will do “whatever it takes” to keep their drivers independent contractors. Continue reading California Law Limiting Gig Economy to Take Effect January 1

The California Supreme Court replaced the existing test for determining whether employees are independent contractors with another, simpler one used in Massachusetts and New Jersey. The former test relied on 10 factors, including the amount of supervision, to assess the company’s control over the worker. The new “ABC” test deems the worker an employee if he does a job that is part of the “usual course” of the company’s business. The ruling could have a profound impact on Uber and others in the so-called gig economy. Continue reading California Court Changes Test to Determine Status of Workers

Riding-sharing app Uber has tussled with its drivers over how to define their status: independent contractors or full-time employees. Uber prefers to identify its drivers as independent contractors, which lets it off the hook for paying minimum wage, overtime and its share of Social Security. Recent settlements in class-action lawsuits in California and Massachusetts, which must be approved by a judge, allow Uber to continue this classification. The Teamsters union is busy organizing drivers who want representation. Continue reading Teamsters Organize Uber Drivers Classified Indie Contractors

Uber Technologies is tweaking how it does business. In California, the ride-sharing company will no longer reject potential drivers due to a nonviolent or nonsexual offense, such as petty theft or check fraud. It will also tell those rejected why and describe steps they can take to reduce their felony conviction to a misdemeanor. Uber is also now promising drivers more money to work during heavy demand periods, and is inviting smartphone app developers to create customized “trip experiences” for riders. Continue reading Uber Adjusts its Employment Policies and Calls for New Apps

The Seattle City Council voted 9-0 to approve a bill allowing Uber and Lyft drivers to unionize. The city’s mayor, Ed Murray, who supports the workers’ right to organize, won’t sign due to his concerns about the unknown costs of administering the collective bargaining process. Even without his signature, it will become law, the first victory for the App-Based Drivers Association (ABDA) of Seattle, the organization of on-demand contract workers who joined with the local Teamsters union to lobby for the legislation. Continue reading Seattle’s United Vote Greenlights Uber and Lyft Driver Unions