Dueling Massachusetts gig worker ballot measures clear key hurdle

BOSTON, Sept 6 (Reuters) - Massachusetts' attorney general on Wednesday gave the green light for backers of competing ballot measures to gather enough signatures to let voters decide whether ride-share drivers for app-based companies like Uber Technologies (UBER.N) and Lyft (LYFT.O) should be treated as independent contractors or should be allowed to unionize.

Massachusetts Attorney General Andrea Campbell certified that the questions put forward by an industry-backed group and a union met constitutional requirements, allowing their backers to begin collecting the tens of thousands of signatures for the measures to appear on the November 2024 ballot.

Campbell's office stressed that her decision did not reflect the Democrat's support or opposition to any proposal. Her office is slated in May to take Uber and Lyft to trial in a lawsuit alleging that the companies' have misclassified their drivers as contractors.

The certified petitions include a proposal filed in August by Flexibility and Benefits for Massachusetts Drivers 2024, a group whose contributors include Uber, Lyft and DoorDash (DASH.N), that seeks to have the companies' drivers deemed to be independent contractors rather than employees who are entitled to more benefits.

The proposal 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.

"We’re pleased that the attorney general's office has certified our ballot proposals to ensure drivers can maintain the flexibility to work when, how often, and for how long they want as independent contractors, while also accessing new benefits and protections," Conor Yunits, a spokesperson for Flexibility and Benefits for Massachusetts Drivers, said in a statement.

On the other end of the spectrum is a competing ballot initiative from the union SEIU Local 32BJ that seeks to allow drivers to unionize so that they can bargain collectively for working conditions and compensation.

The industry-backed proposal mirrors an earlier 2022 ballot measure that Massachusetts' top court blocked from going forward, saying it went too far by including an unrelated proposal to limit the companies' liability for accidents by their drivers.

A similar industry-backed measure in California solidifying ride-hail and food delivery workers’ status as independent contractors with some benefits was approved by voters in 2020.

A California judge 2021 ruled that the measure, Proposition 22, violated the state's constitution. But a state appeals court in March revived the measure.

Read more:

Labor, industry gear up for dueling Massachusetts gig worker ballot measures

California court upholds treating app-based drivers as contractors

Massachusetts court blocks gig worker ballot measure backed by Uber, Lyft

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