Lost in the extensive coverage of Travis Kalanick’s resignation is the news that Uber is adding an in-app tip option. According to the Washington Post, the option is already available in Houston, Minneapolis, and Seattle, and should be part of the app nationwide by the end of July. The move comes on the heels of the Independent Drivers’ Guild’s successful effort to have New York’s Taxi and Limousine Commission propose an in-app tip option requirement in New York City. Uber has styled the new policy part of its “180 Days of Change” – a campaign that Uber described this way in an email to drivers:
For the next 180 days (and beyond), we’ll be making meaningful changes to the driving experience. Some changes will be big, some will be smallーall will be changes drivers have asked for.
Why now? Because it’s the right thing to do, it’s long overdue, and there’s no time like the present. This is just the beginning. We know there’s a long road ahead, but we won’t stop until we get there.
The answer: No.
Through Shahani’s reporting, Uber drivers give clear voice to the key legal arguments about employment status. The picture of control that emerges from these interviews is unmistakable. It’s a terrific piece – and a highly recommended listen.
The Supreme Court has been asked to reconsider whether arrangements requiring non-union employees in the public sector to pay fair share or agency fees violate the First Amendment of the Constitution. Yesterday, Mark Janus, an Illinois state employee, petitioned
the Supreme Court to review
the Seventh Circuit’s decision in Janus v. AFSME
and consider overturning the Court’s precedent in Abood v. Detroit Board of Education
. This petition comes just one year after the Court was asked to consider its precedent in Abood
in Friedrichs v. California Teachers Association
but split 4-4 following Justice Scalia’s death. A decision overturning Abood
could weaken unions financially and politically. Read more here
Bloomberg reports that Uber terminated more than 20 employees following an investigation by the law firm Perkins Coie into reports of harassment and discrimination at the ride-sharing company. Perkins Coie was hired along with the D.C. firm Covington & Burling to examine Uber’s workplace culture. Perkins Coie examined 215 workplace claims but did not act in response to 100 of these human resource complaints. Read more here.
Lyft also made the news this week. The ride-sharing company announced a deal with NuTonomy Inc. The two companies will work together to test self-driving cars in Boston. Lyft has also partnered with Waymo and General Motors Co. in the race to put self-driving cars on the road. Read more here.
The New York Times reports that the Trump Administration has moved to undercut several workplace safety initiatives. These actions signal a shift in the direction of the Occupational Safety and Health Administration (OSHA) even though President Trump has yet to put forth a nominee to lead OSHA. The Trump Administration has suggested changes to the beryllium rule, which was updated under the Obama Administration. These changes might exclude some important industries from coverage. The Trump Administration has also delayed enforcement of the silica rule and a rule mandating that employers report their violations so that they may be made publicly available online. Furthermore, Trump’s budget indicates the Administration’s suspicion of workplace safety programs by proposing getting rid of the Chemical Safety Board and cutting a grant program which educates workers with limited English proficiency on safety hazards in especially dangerous industries.
Yesterday, a New York Assembly Member and the Independent Drivers Guild (IDG) called for an investigation into ride-hailing company Lyft for allegedly cheating drivers out of certain wages. They claim the company is deducting New York State sales taxes and a “Black Car Fund” surcharge on interstate rides, even though they are only supposed to be applied to rides that both begin and end within the state. When drivers confronted Lyft about the mistaken charges, the company claimed they were other administrative costs, not taxes—even though they were the same exact rates as the actual taxes.
Lyft denies the charges, according to the Washington Post, claiming that it is completely upfront with drivers about what commissions and fees apply.
The letter was penned by Assembly Member Robert Rodriguez, who represents areas of East Harlem and Randalls and Wards Islands. The IDG is an affiliate of the Machinists Union and advocates for ride-hailing drivers in New York City. IDG had a controversial start: it serves as a critical outlet for drivers and is recognized by companies like Uber, who have agreed to meet with the group every month; however, it is partially funded by Uber, and part of the deal involved a promise from the Machinists Union to refrain from attempting to unionize the drivers for five years. As one piece highlights, IDG has taken full advantage of this deal—largely to the benefit of its member-drivers.
Though their press release highlights instances of Lyft’s overcharging, they also call for the state to investigate similar companies—e.g., Uber and Juno—for the same misdeeds. The action comes at the heels of last week’s revelation that Uber had been underpaying its New York drivers over two-and-a-half years, taking a cut of commission before taxes and fees, instead of after.
President Trump released his budget yesterday, and it proposed sharp reductions in spending for entitlement programs. The budget also included a cut of 19.8 percent in funding for the Department of Labor. Despite decreases in funding to the Department, the budget includes a proposal for a paid family leave program, which would allow states to grant six weeks of paid maternity and paternity leave. The program would be funded through changes to unemployment insurance. Although the New York Times reports that President Trump’s budget “stands absolutely no chance of being enacted by Congress,” the article notes that congressional Republicans might “seize the moment to impose some austerity of their own without going nearly as far as [Mick Mulvaney, director of the Office of Management and Budget] or Mr. Trump would like.”
Yesterday, Uber announced that it made a mistake calculating its drivers’ commissions in New York. The company based payments to drivers on fares after taxes were taken out instead of basing drivers’ pay on fares before taxes were deducted. Last year, the New York Taxi Workers Alliance filed a suit alleging that the company had been taking taxes out of workers’ pay even though the drivers’ contracts with Uber only allow the company to take its 25 percent cut out of payments to drivers. The New York Times suggests that the mistake impacted tens of thousands of drivers and these inappropriate deductions could amount to more than $200 million. Read more here.
Politico reported that Secretary of Labor Alexander Acosta will not delay the partial implementation date of the fiduciary rule scheduled for June 9th. In an op-ed in the Wall Street Journal, Acosta stated that the Department has “found no principled legal basis to change the June 9 date while [it] seek[s] public input. Respect for the rule of law leads [the Department] to the conclusion that this date cannot be postponed.” However, the Department of Labor has pledged to review the rule despite the initial implementation date going forward as planned. Politico predicts that given the length of the rulemaking process the rule’s second implementation date will also remain in place.
The Wall Street Journal published an article reporting on the Fight for $15’s success in achieving its goal of a $15 minimum wage despite its inability to achieve its other goal, unionization of the workers involved in the campaign. California, New York, and numerous cities are all on the path to a $15 minimum wage. The article explores the SEIU’s strategy in funding the Fight for $15. The union has put more than $16 million into regional organizing and public relations, even though the campaign has not translated into increased union membership and dues. Despite the questions raised by the Wall Street Journal, SEIU president Mary Kay Henry says that the Fight for $15 is an important part of the union’s agenda, stating that the Fight for $15 “makes ‘the labor movement understand that you can make a bold demand.’”
Noncompete agreements — once limited to senior executives — are now a widespread practice, locking in almost one fifth of American workers. This includes low-wage workers at fast-food chains and factories. A recent report from The New York Times revealed how such agreements can harm workers, preventing them from finding new jobs or embroiling them in costly legal battles. This morning, the Editorial Board called for an end to “such morally dubious practices.” It pointed to California — where state law makes noncompete agreements generally unenforceable — as one potential blueprint for reform.
Waymo has scored a big win in its lawsuit against Uber. Yesterday, a federal judge granted a preliminary injunction, barring one of Uber’s star engineers — who is accused of stealing trade secrets — from working on its self-driving car program for the duration of the litigation. Wired has more.
Ford is cutting jobs, Reuters reports. The auto manufacturer plans to shrink its salaried workforce in North America and Asia by as much as 10%, in a move that could attract the ire of the Trump administration. President Trump has promised to expand jobs in the auto industry — earlier this year, he took credit for Ford’s decision not to shift its manufacturing plants to Mexico — but this most recent announcement (which will likely affect thousands of American workers) is a serious setback.
Last week, The National Law Journal published an update on state legislation and lawsuits regarding the classification of gig economy workers as independent contractors.
First, the article noted that the Florida Legislature has passed a bill, expected to be signed into law by Governor Rick Scott, “that classifies drivers for companies such as Uber and Lyft as independent contractors rather than employees, marking the latest state to attempt to regulate the rapidly growing and litigious ride-hailing workforce.” Other states that have passed similar legislation include Arkansas, West Virginia and Colorado.