Forget November 2022. It will likely be a long time before Uber and Lyft drivers get certainty about their employment status in Massachusetts.

Today, drivers are considered independent contractors, but Attorney General Maura Healey has sued, arguing that, under state law, they should be classified as employees. After the Supreme Judicial Court on Tuesday tossed out a ballot question that would have confirmed ride-hailing drivers’ status as independent contractors while granting them additional benefits, the debate turns to two other forums: the Legislature and the courts.

In a statement Tuesday, the pro-ballot question coalition Flexibility and Benefits for Massachusetts Drivers said it is seeking legislative action. “We hope the Legislature will stand with the 80 percent of drivers who want flexibility and to remain independent contractors while having access to new benefits,” the coalition said.

The Legislature’s Financial Services Committee has given itself a June 30 deadline to act on a bill that would establish portable benefits accounts for app-based drivers. The bill, sponsored by Democratic Reps. Mark Cusack of Braintree and Carlos Gonzalez of Springfield, would let drivers retain their status as independent contractors, but set up portable benefits accounts. Rather than guaranteeing particular benefits like minimum pay and sick leave, as the ballot question would have done, accounts would be funded by the companies based on a percentage of drivers’ earnings. Drivers could withdraw money to pay for family and medical leave, health insurance premiums, or retirement savings.

But the State House News Service reported that at an October hearing on the bill, unions, community organizing groups, and Healey all testified in opposition, arguing that the bill would weaken drivers’ rights. Those are powerful forces in the Democratic-led Legislature. Gonzalez has said he’s working on new compromise language.

Sen. Paul Feeney, a Foxborough Democrat who co-chairs the Financial Services Committee with Rep. James Murphy, a Weymouth Democrat, said he believes the SJC made the right decision. “This decision is very instructive as the Legislature considers legislation, now and in the future, relating to app-based network companies, drivers, and riders,” Feeney said. “We have a clearly defined worker classification law in Massachusetts that ensures that working people have fundamental rights and protections, and it should be enforced vigorously in all cases, and across all sectors.” 

Murphy said the committee continues to work on the issue. “It is clear that app-based drivers must be afforded adequate benefits and protections, which is not currently the case,” Murphy said. “I believe in the legislative process and engaging all parties to find possible solutions which serve the best interests of the people of the Commonwealth.”

If lawmakers don’t act, the issue could be decided by the courts.

In July 2020, Healey sued Uber and Lyft in Suffolk Superior Court. She argued that the companies are misclassifying drivers, who should be considered employees, eligible for benefits like overtime, paid sick leave, and worker’s compensation.

Discovery is ongoing in that case.

Shannon Liss-Riordan, a candidate for attorney general who represents workers in employment cases and worked with ballot question opponents, said the Massachusetts lawsuit is unusual because most cases against gig economy companies are filed by individual drivers, and the courts send them to arbitration, avoiding a judicial ruling that could have widespread impact. California and Massachusetts, the states with the most expansive worker classification laws, are two states where the attorney general took the initiative and filed suit.

In California, the attorney general secured a court order classifying drivers as employees, but voters then passed a ballot question classifying them as independent contractors. A judge then overturned the ballot question as unconstitutional, and an appeal is pending.

Liss-Riordan said typically cases like this drag out because the companies have an interest in prolonging discovery. Even once a judge rules in Massachusetts, there will almost certainly be an appeal. “We’re looking for a final decision that will likely not be forthcoming for at least a year or more,” Liss-Riordan said.

Come January, Healey will no longer be attorney general, since she is running for governor. All three Democrats running for attorney general, Liss-Riordan, Andrea Campbell, and Quentin Palfrey, said they would continue to pursue the lawsuit against Uber and Lyft. Republican Jay McMahon did not respond to a request for comment.

SHIRA SCHOENBERG

 

FROM COMMONWEALTH

Fight called off: The Supreme Judicial Court throws out a high-stakes ballot question classifying rideshare drivers as independent contractors, ruling that the question itself deals with at least two unrelated issues in violation of the state constitution. The decision cuts short what was shaping up as an expensive election battle between gig companies such as Uber, Lyft, DoorDash and union groups.

— The court, in its unanimous decision, said the question defined drivers as independent contractors and also narrowed the legal liability of companies like Uber and Lyft in certain lawsuits brought by third parties, such as individuals assaulted by drivers or injured in traffic accidents involving a driver. The court held that the two unrelated issues meant voters could be faced with two potentially conflicting choices. CommonWealth published a commentary by Andy Metzger on the liability issue in May. Read more.

OPINION

Close the gap: Beth Chandler of YW Boston and Jane Edmonds of Babson College argue that the gap must be closed between the state’s population makeup in terms of women and people of color and representation on public boards and commissions. Read more.

 

FROM AROUND THE WEB

 

BEACON HILL

Massachusetts’ Commission on LGBTQ Youth releases a list of policy recommendations, including improving sex ed classes in schools and expanding access to mental health care. (MassLive)

A legislative committee is pumping the brakes on plans to put the Hynes Convention Center out for sale or lease, saying more time is needed to study the issue. (Boston Globe) 

MUNICIPAL MATTERS  

A year after Quincy imposed ordinances regulating short-term rentals, about 25 rentals have stopped operating and city officials have taken another 10 owners to court. (Patriot Ledger)

Local boards that oversee land use and housing construction in Massachusetts are dominated by white male homeowners, according to a Boston University study of nearly two dozen cities. (WBUR)

The Boston City Council will consider a resolution today that would offer a formal apology for the city’s role in the slave trade. (Boston Globe) 

Pittsfield City Councilor Charles Kronick negates weeks of work on the municipality’s budget by making a charter objection, which had the effect of shutting down debate and setting the stage for the mayor’s original budget filing – complete with mistakes – to pass as is. Fellow councilors called Kronick’s move “irresponsible.” (Berkshire Eagle)

Western Massachusetts leaders raise concerns with the Baker administration that they are having trouble hiring new public employees. (MassLive)

The Board of Registration of Home Inspectors declines to take a stand on whether quickie home inspections, suddenly in vogue in the hot real estate market, are permitted under state rules. (WBUR)

HEALTH/HEALTH CARE

The Department of Public Health moves ahead with plans to build a recovery campus on the site of the Shattuck Hospital next to Franklin Park, rejecting calls for transforming the site into open space. (Dorchester Reporter)

Keith Hovan, the former CEO of Southcoast Health who left the position in January following his November 2021 arrest for alleged domestic assault, has launched a website and blog promoting his health care background and knowledge. (New Bedford Light)  

WASHINGTON/NATIONAL/INTERNATIONAL

US Sen. Mitch McConnell says he would support passage of a gun reform measure if the language of the proposed bill matches the outline released over the weekend. (NPR)

Elected officials across the political spectrum condemn a mapping project released by the Boston arm of a Palestinian advocacy organization that shows where Jewish-related institutions are located. (MassLive)

Rep. Ayanna Pressley was the lone member of the state’s House delegation to vote against a measure providing added security for US Supreme Court justices. The vote came a week after the arrest of an armed man near the home of Justice Brent Kavanaugh who told police he intended to kill the judge. (Boston Herald) 

BUSINESS/ECONOMY

From culinary work to construction, the Herald News looks at which fields employers are desperate to hire in. 

TRANSPORTATION

The Cape Ann bus system eliminates fare zones, making long trips less expensive. (Gloucester Daily Times)

As gas hits $5 a gallon, drivers adjust their behavior. (Eagle-Tribune)