In December, Uber’s CEO asked the governors of all 50 states to give the ride-hailing company’s workers priority for the coronavirus vaccine. The company sent a similar letter to the Centers for Disease Control and Prevention.
It’s a profoundly cynical move. Uber and friends just spent over $200 million on California’s Proposition 22, a successful ballot initiative to exempt themselves from basic employment laws (paid sick leave, unemployment insurance, workplace safety requirements), in exchange for a seriously slender benefits package.
The misclassification of employees as independent contractors predates the emergence of the gig economy and has been a method of skirting the cost of standard worker protections.
In the midst of all the presidential transition drama, one of the most overlooked but consequential outcomes of the November election was the victory of Proposition 22 in California. Funded by Uber, Lyft, DoorDash, Instacart, and Postmates to the tune of a record-breaking $200 million, the ballot measure exempted ride-hailing and delivery drivers from a 2019 law, Assembly Bill 5, which brings California’s gig economy into compliance with conventional employment laws.
The misclassification of employees as independent contractors has been the focus of recent attention as a result of the implementation of that employment model by ride-share and other gig employers. But the practice long predates the emergence of the gig economy, particularly in the construction industry. This article traces the history of misclassification in construction and the subsequent emergence of a cash-based underground system of compensation, which have lowered standards and been among the major causes of the decline of union density in the industry. In addition, the author examines the regulatory environment at the federal level, which has largely enabled misclassification as well as attempts by state agencies to adopt more aggressive enforcement policies. Downloand Article
Joel Rosenblatt, Robert Wilkens-Iafolla and Erin Mulvane Bloomberg
Uber and Lyft on Tuesday fended off labor protections that were decades in the making, allowing the companies to keep compensating their drivers as independent contractors. While Proposition 22 requires these app-based transportation services to offer some modest new perks for drivers, it keeps them from having to provide benefits that full-time employees get.
In a major win for gig economy companies, CNN projects California voters have passed a costly and controversial ballot measure to exempt firms like Uber and Lyft from having to classify their gig workers in the state as employees rather than as independent contractors.
Terri Gerstein of the Harvard Labor and Worklife Program and Economic Policy Institute said in an email to CNN Business that the result will "leave thousands of California workers in a precarious and perilous position, without basic rights...
Scalia’s primary objective as U.S. Labor Secretary has been to solidify an enforcement philosophy at DOL that’s predictable for employers. Businesses had railed against the Obama administration for what they viewed as its overly punitive, “gotcha"-style tactics. Their frustration mounted when President Donald Trump‘s first labor secretary, Alexander Acosta, was slow to rebalance the enforcement landscape.
Opponents say Scalia has failed to leverage the department’s enforcement functions to defend workers at a time when their lives and...
Opinion by Terri Gerstein for CNN Business Perspectives
Gig companies are urging Congress and state lawmakers to create a new category of worker, without the full protections that employees receive. But like all other businesses, gig companies should be required to treat their workers as employees, not as independent contractors or any other designation.
Policy decisions should not be made on the basis of a few large companies' self-interest. Rather, we should act based on what's best for society, which includes ensuring decent, dignified treatment for the people whose work makes our country run. That necessarily involves placing some obligations on companies.
McDonald’s in recent years has become one of the highest profile corporations battling over the question of joint employment, or whether a franchise company is legally responsible as an employer of workers at restaurants owned by franchisees.
“The whole concept of trying to impute a perceived wrong on the part of a franchise to the main entity, or vice versa, is really problematic,” said Jonathan Segal, a partner at Duane Morris in the employment, labor, benefits and immigration practice group. He said that efforts to classify McDonald’s as a joint employer eliminated the nature of a franchise system, which gives franchisees day-to-day control of operations.
“To me, it’s clear that in many instances, they should be found a joint employer,” Gerstein said. “But certain courts have allowed the franchise model to be a way for companies to evade the responsibility for ensuring a franchisee complies with the law.”... Read more about McDonald’s Legal Boss Jerry Krulewitch Retires
Attorney General Dana Nessel is one of the leading state AGs in protecting workers’ rights, according to a new report published by the Washington, D.C.-based Economic Policy Institute (EPI) prior to Labor Day.
The economic justice think tank details the more prominent role state attorneys general have taken in labor rights issues since mid-2018 and lists specific ways each has advanced workers’ protections, both on the state and federal level.
On this Labor Day of 2020, remember the full picture of what unions do. They serve their members, yes, but they bring many other benefits, and they’re essential for a healthy, thriving democracy for all of us. In addition to helping the workers who are their members, unions bring many other benefits to the general public, like increasing voter turnout, decreased racial resentment among white union members, better patient outcomes in hospitals with unionized nurses, and reduced income inequality.