(CTN News) – An argument is currently being presented to a jury in Massachusetts about Uber and Lyft’s purported categorization of their drivers as independent contractors rather than employees.
This trial is a part of a larger legal and political debate over the status of gig workers in the state and the country, according to Reuters, which reported on Monday, May 13, that the trial is taking place.
According to the article, Massachusetts Attorney General Andrea Joy Campbell is of the opinion that drivers for ride-sharing companies should be deemed workers under state law. This would mean that they should be eligible for benefits such as paid time off, overtime pay, and minimum wage.
According to the findings of the study, Uber and Lyft have asserted that they have correctly classified their drivers. They have stated that they are technology companies that connect drivers and riders, rather than transportation companies that hire drivers.
The companies are concerned that a ruling that is not in their favor could put their flexible business approach in Massachusetts in peril, which could result in the need for operational reductions or even the complete cessation of operations.
According to the report, Maura Healey, who is currently serving as the governor of Massachusetts and was Campbell’s predecessor, filed a lawsuit in the year 2020 alleging that Uber and Lyft had misclassified thousands of drivers in the state of Massachusetts and had failed to comply with the worker-friendly laws of the state, which would have allowed them to be classified as independent contractors.
According to the information provided in the report, if the state prevails in its legal struggle about the incorrect classification of their drivers.
Uber and Lyft may be exposed to significant fines.
According to the findings of the investigation conducted by the state auditor, Uber was able to avoid paying a total of $266.4 million in workers’ compensation, unemployment insurance, and paid family medical leave over a period of ten years in Massachusetts because the company failed to identify its drivers as employees.
This study is being made public one week after the Massachusetts Supreme Judicial Court had a deliberative session to evaluate whether or not to bring two ballot issues that aim to modify the status of app-based workers before voters in November. The measures in question are now being considered by the court.
An organization that is supported by the industry has put forward a proposition that asks voters to approve that app-based drivers should be classified as independent contractors who receive additional benefits, rather than employees of the companies for whom they work.
Under the other option, individual drivers for Uber and Lyft would be given the opportunity to organize into unions while being supervised by the government.
These issues pertaining to the gig economy have also been addressed by a number of other legal systems. Over the course of the year 2020, the legislature of California voted to approve Proposition 22, which provides workers with rights and assurances.
A statement made by Uber in April stated that the company had invested more than one billion dollars in perks for drivers and couriers in the state of California since the law was passed.
As a result of a resolution passed by the Minneapolis City Council in March mandating that drivers receive a minimum wage of $15.57 per hour, Uber and Lyft announced in March that they will cease operations in the city.
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