UBER - Uber And Lyft Drivers' Future Hangs In Balance As Massachusetts Supreme Court Deliberates | Benzinga
The future of ride-share drivers for Uber Technologies Inc. (NYSE:UBER) and Lyft Inc. (NASDAQ:LYFT) in Massachusetts is uncertain as the state’s supreme court is set to hear arguments on their employment classification.
What Happened: The court will determine whether drivers for these companies should be considered independent contractors or employees with rights to benefits and wage protections, Reuters reported on Friday. This decision is part of a broader national discussion about gig workers’ rights.
Two contrasting ballot measures are slated for the November vote. The industry-supported proposal recommends treating app-based drivers as independent contractors with certain benefits, while a labor-backed proposal pushes for Uber and Lyft drivers’ right to unionize.
Uber and Lyft are also dealing with a civil lawsuit launched by former state attorney general Maura Healey, who alleges the companies of wrongfully classifying their drivers as contractors to evade providing them with employee benefits.
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The court’s decision could greatly impact the business models of Uber and Lyft. If the court and voters reject the industry’s position, the companies may need to significantly revamp their operations. On the other hand, a win in ...