Voting on ride-hailing's future in Massachusetts
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Illustration: Brendan Lynch/Axios
The state's top court cleared the way Thursday for voters this November to decide if app-based ride-hailing and delivery drivers will be classified as independent contractors or as employees subject to labor laws and benefits.
Why it Matters: If gig companies like Uber and Lyft win on the ballot, it will solidify their independent contractor model in Massachusetts, while drivers would get some new benefits and retain work flexibility.
- If voters side with organized labor, drivers would become full employees with minimum wages, overtime pay, unemployment insurance and other benefits.
Update: Uber and Lyft reached a settlement with the Commonwealth of Massachusetts, eliminating the need for a ballot question. Read more here.
The big picture: The outcome will add another state-level precedent for how gig workers are treated around the country.
Driving the news: The Supreme Judicial Court ruled Thursday that questions regarding drivers' employment rights comply with the state constitution, so the ballot questions can move forward.
Voters could see two questions on the ballot Nov. 5: one supported by gig economy giants like Lyft, Uber and DoorDash and another backed by labor.
- Expect dueling political ads to encourage "yes" votes on one and "no" votes for the other.
Follow the money: The gig companies have proven their willingness to spend millions to keep drivers independent.
The bottom line: It's going to get confusing.