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
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December 22
Worker-friendly legislation enacted in New York; UW Professor wins free speech case; Trucking company ordered to pay $23 million to Teamsters.
December 21
Argentine unions march against labor law reform; WNBA players vote to authorize a strike; and the NLRB prepares to clear its backlog.
December 19
Labor law professors file an amici curiae and the NLRB regains quorum.
December 18
New Jersey adopts disparate impact rules; Teamsters oppose railroad merger; court pauses more shutdown layoffs.
December 17
The TSA suspends a labor union representing 47,000 officers for a second time; the Trump administration seeks to recruit over 1,000 artificial intelligence experts to the federal workforce; and the New York Times reports on the tumultuous changes that U.S. labor relations has seen over the past year.
December 16
Second Circuit affirms dismissal of former collegiate athletes’ antitrust suit; UPS will invest $120 million in truck-unloading robots; Sharon Block argues there are reasons for optimism about labor’s future.