Holt McKeithan is a student at Harvard Law School.
In today’s News and Commentary, Massachusetts wins benefits for gig drivers in deal with Uber and Lyft, Amazon drivers in Illinois go on strike, and CEO pay is accelerating.
Massachusetts’ four-year long driver misclassification suit against Uber and Lyft was settled yesterday. The suit, filed by the commonwealth’s attorney general’s office in 2020, alleged that the companies misclassified their drivers as independent contractors, and thus failed to provide employment benefits like paid time off and a minimum wage. The agreement allows Uber and Lyft to continue treating their drivers as contractors, but comes with a suite of concessions. The companies will pay the state $175 million dollars, adopt a $32.50 hourly minimum pay standard for Massachusetts drivers, and provide sick leave, accident insurance, and healthcare stipends to drivers.
The fight over driver classification in Massachusetts is still unsettled. The Massachusetts Supreme Judicial Court ruled yesterday that two ballot questions regarding driver classification may appear on the 2024 ballot. Uber and Lyft previously supported an initiative that would legally classify drivers as independent contractors, while the SEIU backs an initiative that would grant drivers organizing rights. As part of the settlement agreement, Uber and Lyft agreed to stop supporting and funding the former. That is a significant concession; the companies spent $200 million backing a similar successful ballot measure in California.
Drivers working for an Amazon sub-contractor in Illinois struck yesterday over unfair labor practices. The workers claim Amazon terminated its contract with the Amazon sub-contractor, effectively firing the employees, in retaliation for organizing with the Teamsters local. Amazon terminated the contract after the workers received a majority card-support and marched on management for recognition. The Teamsters are now picketing 30 Amazon warehouses.
New data shows CEO pay is increasing at the highest rate since 2010. Median CEO pay, which was already 251 times higher than median worker pay in 2023, has increased at three-times the rate of average worker pay so far this year.
Daily News & Commentary
Start your day with our roundup of the latest labor developments. See all
December 13
In today’s News & Commentary, the Senate cleared the way for the GOP to take control of the NLRB next year, and the NLRB classifies “Love is Blind” TV contestants as employees. The Senate halted President Biden’s renomination of National Labor Relations Board Chair Lauren McFerran on Wednesday. McFerran’s nomination failed 49-50, with independents Joe […]
December 11
In today’s News and Commentary, Biden’s NLRB pick heads to Senate vote, DOL settles a farmworker lawsuit, and a federal judge blocks Albertsons-Kroger merger. Democrats have moved to expedite re-confirmation proceedings for NLRB Chair Lauren McFerran, which would grant her another five years on the Board. If the Democrats succeed in finding 50 Senate votes […]
December 10
In today’s News and Commentary, advocacy groups lay out demands for Lori Chavez-DeRemer at DOL, a German union leader calls for ending the country’s debt brake, Teamsters give Amazon a deadline to agree to bargaining dates, and graduates of coding bootcamps face a labor market reshaped by the rise of AI. Worker advocacy groups have […]
December 9
Teamsters file charges against Costco; a sanitation contractor is fined child labor law violations, and workers give VW an ultimatum ahead of the latest negotiation attempts
December 8
Massachusetts rideshare drivers prepare to unionize; Starbucks and Nestlé supply chains use child labor, report says.
December 6
In today’s news and commentary, DOL attempts to abolish subminimum wage for workers with disabilities, AFGE reaches remote work agreement with SSA, and George Washington University resident doctors vote to strike. This week, the Department of Labor proposed a rule to abolish the Fair Labor Standards Act’s Section 14(c) program, which allows employers to pay […]