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 12
OH vetoes bill weakening child labor protections; UT repeals public-sector bargaining ban; SCOTUS takes up case on post-arbitration award jurisdiction
December 11
House forces a vote on the “Protect America’s Workforce Act;” arguments on Trump’s executive order nullifying collective bargaining rights; and Penn State file a petition to form a union.
December 8
Private payrolls fall; NYC Council overrides mayoral veto on pay data; workers sue Starbucks.
December 7
Philadelphia transit workers indicate that a strike is imminent; a federal judge temporarily blocks State Department layoffs; and Virginia lawmakers consider legislation to repeal the state’s “right to work” law.
December 5
Netflix set to acquire Warner Bros., Gen Z men are the most pro-union generation in history, and lawmakers introduce the “No Robot Bosses Act.”
December 4
Unionized journalists win arbitration concerning AI, Starbucks challenges two NLRB rulings in the Fifth Circuit, and Philadelphia transit workers resume contract negotiations.