Teamsters Urge Mass. Legislators to Reject Misclassification Referendums

TL/DR -

Teamsters, a labor union, testified against Uber and Lyft's business models before the Massachusetts Senate Special Joint Committee on Initiative Petitions. The committee was examining six petitions related to the employment classification of Uber and Lyft drivers as well as other gig economy workers. Teamsters asserts these petitions incentivize worker misclassification, promote wage theft, potentially violate the ABC Test and the Economic Realities Test used to determine independent contractor status, and give unfair market advantage to gig economy companies.

Union Opposes Uber & Lyft’s Misclassification Tactics

Press Contact: Matt McQuaid Phone: (202) 624-6877 Email: mmcquaid@teamster.org

Teamsters recently testified against potential 2024 ballot initiatives that would escalate the misclassification of workers in Massachusetts. The Senate Special Joint Committee on Initiative Petitions is currently evaluating six petitions regarding the contractual status of drivers for gig economy firms like Uber and Lyft.

“These proposals aren't efforts to enhance public policy. Instead, they undermine workers' rights, deteriorating direct employment standards and depriving employees of fair wages and benefits owed by their employers,” stated Teamsters General President Sean M. O’Brien. “We shouldn't be amending laws to favor corporate misconduct from gig economy companies. Instead, we should be penalizing such firms for business models that depend on worker misclassification and wage theft."

The proposed petitions promote worker misclassification, potentially fostering unfair market practices. They could also conflict with state laws concerning independent contractor status, namely the ABC Test, and the recently established Economic Realities Test by the U.S. Dept. of Labor.

Tom Mari, President of Teamsters Local 25, added, “These initiatives are clear attempts by corrupt firms to evade our laws and continue exploiting workers. Misclassification isn’t innovation. It’s a scheme that defrauds everyone except the companies using it. Wage theft via app is still wage theft.”

The International Brotherhood of Teamsters, established in 1903, represents 1.3 million hardworking individuals in the U.S., Canada, and Puerto Rico. Visit Teamster.org for more info. Follow us on Twitter @Teamsters and “like” us on Facebook at Facebook.com/teamsters. 

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