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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July 10
Brigham and Women’s Hospital locks out 4,000 nurses after one-day strike; appeal filed challenging agency-shop agreements.
July 9
The Second Circuit declines to vacate an arbitration award over a nursing union dispute; federal workers sue the Department of Defense for termination of union contracts; New York City announces settlement with companies for violating New York work laws.
July 8
DOL plans to make changes to the PERM immigration program; three-day hearing on proposed forced-labor tariffs is underway; Mamdani recovers $2.3M in corporate settlements.
July 7
Former EEOC Commissioner drops her wrongful termination lawsuit following the Supreme Court’s ruling on Presidential removal power; unions sue Department of Defense over cancellation of collective bargaining agreements.
July 6
NY home health worker class action settlement secures preliminary approval; the NLRB upholds order finding Amazon violated federal labor law.
July 3
Unions seek a preliminary injunction to prevent USDA downsizing; the D.C. District Court issues a preliminary injunction against new student loan regulations; Matt Bruenig releases an analysis of Starbucks’ ongoing legal battle against Starbucks Workers United.