BOSTON - Massachusetts has become the latest front in a years-long battle in the United States over whether ride-share drivers for Uber and Lyft should be treated as independent contractors or employees entitled to benefits and wage protections.
Should the industry fail in court and at the ballot box, Uber and Lyft face the prospect of a sweeping overhaul of their business model. Uber's lawyers said in court papers such a change could force it to cut or end service in Massachusetts. Uber and Lyft have defended against claims that their drivers should be classified as employees because the companies have significant control over working conditions. The flexibility of gig work and the ability of drivers to work for competing apps are hallmarks of independent contracting, according to the companies and their allies.Employees can cost companies up to 30% more than independent contractors, according to various studies.
The companies in that settlement agreed to institute a minimum "earnings floor" and paid sick leave, akin to the industry-backed proposal in Massachusetts. "Our ballot question will secure all of these things for drivers while allowing them to maintain the minute-by-minute flexibility they cherish in demand," Conor Yunits, a spokesperson for the ballot committee, said at the Tuesday event.Trump trial updates: Prosecution plays Cohen’s secret recording of Trump discussing payment to Karen McDougal
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