The future of the gig economy hangs in the balance of the Massachusetts Supreme Judicial Court as it prepares to hear arguments over how employers should properly classify Uber and Lyft ride-share drivers.
At the heart of the legal battle are two competing ballot measures that may also go before Massachusetts voters in November.
According to a report published by Reuters, the industry-backed proposal seeks to maintain the independent contractor status of app-based drivers while providing them with some additional benefits.
On the other side of the argument is a labor-supported initiative which would grant Uber and Lyft drivers the right to unionize.
Ride sharing companies have long maintained that their drivers are independent contractors — citing the flexibility and ability to work for multiple apps as key characteristics of the work arrangement. However, a ruling against Uber and Lyft could force a complete overhaul of the ride sharing business model.
Many critics of ridesharing companies argue that by classifying drivers as contractors, Uber and Lyft have avoided paying millions of dollars into workers’ compensation — in addition to unemployment insurance and paid family medical leave.
Similar arguments have been made across countries like France and in Australia.
According to Reuters, the state’s attorney general Maura Healey filed a civil lawsuit against the companies in 2020 alleging that they unlawfully misclassified their drivers.
The outcome of this legal battle could set a precedent for other states grappling with similar issues in the gig economy. If Uber and Lyft prevail, it may also embolden them to continue their current practices nationwide.
Similarly, a victory for labor advocates could spark a wave of reforms aimed at improving the rights and protections of gig workers nationwide.
