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

By Nate Raymond

BOSTON (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 and Lyft 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, 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.

The industry-backed group in a statement called Thursday's lawsuit a "cynical legal attempt to block the question" and said its ballot language has been "thoughtfully tailored" to incorporate feedback from the state's high court in 2022.

The Service Employees International Union's Local 32BJ is backing a competing ballot initiative that seeks to allow drivers to unionize so that they can bargain collectively for working conditions and compensation.

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.

(Reporting by Nate Raymond in Boston, Editing by Alexia Garamfalvi and Bill Berkrot)