Labor-backed group sues to block Massachusetts gig worker ballot proposal

Source: Reuters

February 1, 2024 4:12 PM EST


BOSTON, Feb 1 (Reuters) - A labor-backed coalition on Thursday filed a lawsuit seeking to block an industry-supported bid to ask Massachusetts voters to decide whether ride-share and delivery drivers for companies like Uber (UBER.N) and Lyft (LYFT.O) should be treated as independent contractors rather than employees.

A group of voters who count drivers and union leaders as members asked the Massachusetts Supreme Judicial Court to conclude that the five industry-backed proposals should not have been certified for inclusion on the November 2024 ballot. The lawsuit alleges the industry-backed group's petitions contain multiple, unrelated policy proposals in violation of the state's constitution, which requires petitions contain only related subjects, and would confuse voters.

The state's high court blocked a similar measure from appearing on the ballot in 2022, saying it went too far by including a "vaguely worded," unrelated proposal that would limit the companies' liability for accidents by their drivers. Flexibility and Benefits for Massachusetts Drivers, a group whose contributors include Uber, Lyft, Instacart and DoorDash (DASH.O) last year launched a campaign to again seek to classify app-based drivers as independent contractors entitled to minimum benefits, rather than as employees.

The proposals would establish an earnings floor equal to 120% of the state's minimum wage for app-based drivers, or $18 an hour in 2023 before tips. Drivers would also receive healthcare stipends, occupational accident insurance and paid sick time. The issue is critical for gig companies because contractors do not receive the same legal protections as employees and can be up to 30% cheaper, according to several studies.

Read more: https://www.reuters.com/legal/labor-backed-group-sues-block-massachusetts-gig-worker-ballot-proposal-2024-02-01/