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
February 21
In today’s News & Commentary, Trump spending cuts continue to threaten federal workers, and Google AI workers allege violations of labor rights. Trump’s massive federal spending cuts have put millions of workers, both inside and outside the federal government, in jeopardy. Yesterday, thousands of workers at the U.S. Department of Veterans Affairs research office were […]
February 20
President Trump's labor secretary pick retreats from some of her pro-labor stances during Senate confirmation hearing and Lynn Rhinehart discusses implications of NLRB and other agency removals.
February 19
In today’s news and commentary, Lori Chavez-Deremer’s confirmation hearing, striking King Soopers workers return to the bargaining table, and UAW members at Rolls-Royce authorize a strike. Lori Chavez-Deremer, President Trump’s nominee for Secretary of Labor, faces a Senate confirmation hearing today. Chavez-Deremer may face more No votes from Republicans than other Trump cabinet members. Rand […]
February 18
In today’s news and commentary, an air traffic union examines the impact of federal aviation worker firings, Southwest Airlines lays off 15% of its corporate workforce, and the NLRB’s General Counsel withdraws Biden-era memos Following the Trump Administration’s dismissal of hundreds of Federal Aviation Administration (FAA) employees, the National Air Traffic Controllers Association (NATCA), a […]
February 17
President Trump breaks campaign promise to support workers and Utah’s governor signs a law banning public sector collective bargaining
February 16
Unions fight unlawful federal workforce purges; Amazon union push suffers setback in North Carolina.