What Prop. 22’s defeat would mean for Uber and Lyft — and drivers

From today’s Los Angeles Times:

One way or another, the business of summoning a ride from your phone is likely to look different in California after Nov. 3.

The future of gig work could hinge on the success or failure of Proposition 22, called the App-Based Drivers as Contractors and Labor Policies Initiative. Uber, Lyft and other companies bankrolling the initiative say it would improve workers’ quality of life, providing new benefits while preserving their autonomy. If passed, the measure would cement gig workers’ status as independent contractors, dealing a huge blow to a labor movement striving to bolster protections for workers at the margins.

Abstract illustration of an app-based driver in a car

Gig companies’ business models rely on hiring large numbers of workers cheaply as independent contractors to provide rides, deliver meals and groceries and perform other services. Assembly Bill 5, a state law passed in 2019, aimed to expand protections to these workers, requiring gig companies to reclassify them as employees.

Proposition 22 represents the companies’ efforts to battle that law and the obligations that come with it.

Uber, Lyft, DoorDash, Instacart and Postmates (which was recently acquired by Uber) have jointly poured close to $200 million into the “yes” campaign, flooding the airwaves and their own apps with ads and making the measure the costliest in U.S. history.

At the heart of it all is a vicious fight to shape the prospects of hundreds of thousands of drivers and delivery workers across the state.

Here’s what you need to know.

What would happen if Proposition 22 passes?

For the companies sponsoring it, the short answer is: business as usual. For workers, it would bring some clarity, at a price.

The text of Proposition 22 assures drivers they would maintain flexibility as independent contractors. The measure offers some benefits similar to those conferred under AB 5, but significantly weaker.

Gig companies thus far have resisted compliance with AB 5, which went into effect Jan. 1. In early August, a judge ordered Uber and Lyft to convert their drivers to employees. At the 11th hour, the companies won a temporary stay of the order from a state appeals court, effectively pushing off the deadline until after voters have their say.https://datawrapper.dwcdn.net/Krp2r/6/

Uber and Lyft presented oral arguments before California’s 1st District Court of Appeal on Tuesday. The court has 90 days to decide whether it will uphold the lower-court ruling. But Proposition 22, if passed, would override protections granted by AB 5.

The measure instead would grant 120% of the minimum wage (state or local, depending on where the driver is). However, this minimum narrowly applies to “engaged time,” meaning the time a driver is on a trip with a passenger or en route to pick up a passenger. One study found drivers spend one-third of their time waiting between passengers or returning from trips, time that would not count toward the minimum wage.

Read the complete article here.

It’s Time to Strike! This Could Be the Last Stand for American Workers

From today’s New York Times:

Labor Day hit with an extra knife-twist of cruel irony this year, in an America that is barely trying to pretend anymore that the plight of tens of millions of working people merits national concern.

On Friday, the government announced a slowing recovery from the job losses and economic shutdown caused by the pandemic. Nearly 14 million Americans are now unemployed, and almost eight million more are euphemistically called “involuntary part-time,” meaning they would work more if there were enough work.

In March, as part of a wider stimulus, Congress expanded unemployment aid by $600 per week, a plan that scholars say may have temporarily reduced the nation’s poverty rate. As of mid-August, about 29 million Americans were receiving some form of unemployment assistance.

But the $600-per-week bonus ran out in July, and Senate Republicans have rejected Democrats’ bill to extend the payments. The G.O.P. is now working on its own more limited plan, though several Republican senators are reluctant to support even that.

Inaction may prove disastrous. Beth Ann Bovino, chief U.S. economist for S & P Global, told The Times last week that federal aid was meant as a kind of economic bridge through uncertain times, but, she added, “it looks like the ravine has widened and the bridge is halfway built, so there are a lot of people stranded.”

Bovino’s image suggests a way out of this mess: Workers should band together and demand, collectively, a bridge across the ravine.

To put it more plainly: It’s time for a general strike. Actually, it’s time for a sustained series of strikes, a new movement in which workers across class and even political divides press not just for more unemployment aid but, more substantively, a renewed contract for working in an economy that is increasingly hostile to employees’ health and well-being.

This may be the American worker’s last stand: If we can’t get our government to help us now, when will we ever?

Read the complete article here.

When Your Employer Doesn’t Respect Your Family Commitments

From today’s Harvard Business Review:

When trying to balance your work and family commitments, it helps to have a boss who is understanding and supportive: someone who doesn’t raise an eyebrow when you sign off early to attend a school event or take a personal day to accompany an aging parent to a doctor’s appointment.

But what if your manager isn’t sympathetic to your familial responsibilities? Or worse, your boss is outright dismissive or is even hostile toward your obligations? This is particularly challenging during the pandemic when many people’s work and home lives have collided. How should you handle a boss who refuses to acknowledge the other demands on your time? How can you find room for flexibility? What should you say about your family commitments? And who should you turn to for moral and professional support?

Too many working parents and other employees with extensive caregiving responsibilities have stories of a manager who gives them an assignment at 4 pm and asks for it the next morning, or a boss who makes disparaging comments about another working parent who doesn’t seem loyal to the company. “There are some managers who are unsympathetic to the challenges their employees face at home and some who intentionally turn a blind eye,” says Avni Patel Thompson, the founder and CEO of Modern Village, a company that provides technology solutions for parents. “Other managers may have positive intent but lack empathy or ideas on how to [support their employees].”

When you work for a manager who doesn’t recognize your family obligations, your strategy must be multifaceted, says Ella F. Washington, professor at Georgetown University’s McDonough School of Business and a consultant and coach at Ellavate Solutions. You need to figure out how to productively navigate the situation with your boss, while also collaborating with your colleagues and family to create a schedule and “set boundaries” that work for everyone. The goal is to “try to get your boss to meet you halfway,” she says. Here are some ideas.

First things first, “know your rights” and understand what you’re entitled to in terms of paid leave and care options, says Thompson. Do some research into your company’s policies and whether there are alternative work arrangements on offer. Long before the pandemic hit, an increasing number of organizations instituted flexible work plans for employees, and many states have flex-work policies in place for their government workers.

Find out, too, if your situation qualifies you for the federal Families First Coronavirus Response Act. The law requires some employers to provide paid leave to workers who must care for someone subject to quarantine or a child whose day care or school is closed. Washington recommends talking to your company’s HR person, if you have one, to learn what options and accommodations are available to you. “Knowledge is power,” she says.

Read the complete article here.

Instacart shoppers face unforgiving metrics: ‘It’s a very easy job to lose’

From today’s Los Angeles Times:

Five days a week, Ryan Hartson scours the picked-over aisles of Mariano’s Fresh Market in Chicago to fill grocery delivery orders for Instacart. He clocks in for his shift exactly on the hour — if he’s even five minutes late, he’ll receive a “reliability incident.” Within four minutes he must accept any incoming orders. Any longer and he’ll be kicked off the shift and risk getting an incident. Three incidents in a week and he’s at risk of termination.

“It’s a very easy job to lose,” Hartson said.

To avoid missing orders, Hartson schedules his bathroom visits — after four hours of work, the app notifies him that he has earned a 10-minute paid break. Meanwhile, Instacart managers use the app to see if he’s running behind on his orders. The app also tracks Hartson’s customer communications, automatically searching for specific terms to ensure he’s using Instacart’s preferred script. If he doesn’t, his metrics will take another hit.

Metrics define the experience of Instacart’s part-time workforce. Measured weekly for employees such as Harston is the number of reliability incidents; the number of seconds it takes to pick each item; and the percentage of customers with whom they correspond. Some former and current employees say 5% to 20% of shoppers in a store can be fired weekly.

Even in the data-driven tech world, Instacart stands out for its metrics-oriented culture, interviews with more than 30 current and former employees as well as documents and recordings reviewed by The Times reveal. This drive toward productivity helps Instacart’s profit margins, a vital step for a start-up that recorded its first-ever monthly profit in April, as the coronavirus pandemic heightened demand for grocery delivery.

Instacart says it has eased enforcement of certain metrics during the pandemic, but shoppers say company policies often ignore the realities of the job, leaving them in constant fear of termination over things out of their control.

Instacart says it evaluates shoppers on more than just speed and efficiency. Natalia Montalvo, the company‘s director of shopper engagement and communications, said the in-store shopper role was built on the premise of “flexibility, efficiency, innovation and customer service.”

“Efficiency and fulfillment of customer orders in a timely manner is important,” Montalvo said, “but it’s just one of many factors we look at in our overall business health and growth relative to other contributors” such as revenue derived from advertising for and partnering with consumer brands.

Read the complete article here.

Why Work From Home When You Can Work From Barbados or Estonia?

From today’s New York Times:

When Lamin Ngobeh, a high-school teacher at the Freire Charter School in Wilmington, Del., saw a social media post last month about working remotely in Barbados for 12 months, his interest was piqued.

Lamin Ngobeh, a high-school teacher in Delaware, plans to move temporarily to Barbados in September.
Mr. Ngobeh in his classroom in Delaware.

“My school probably won’t open for in-person classes at least until February 2021, and I want to be in a country that’s safer — health wise — and also enjoy the quality of life,” he said of the reasons for considering a temporary relocation. “I reached out to my school leaders and they were very supportive of my decision.”

When it announced its 12-month Welcome Stamp program in mid-July, Barbados became one of the first of several countries, in regions from the Caribbean to Eastern Europe, to create programs for remote workers. The programs employ either special visas or expand existing ones to entice workers to temporarily relocate. Other countries offering similar visas currently include Estonia, Georgia and Bermuda.

A substantial drop in these countries’ tourism numbers is a key reason for the new programs.

“Tourism is the lifeline of the country,” said Eusi Skeete, the U.S. director of tourism for Barbados. Tourism accounted for 14 percent of the country’s annual gross domestic product in 2019, according to data published by the Central Bank of Barbados, and had a record number of international arrivals of more than 712,000. But in 2020, the number of visitors during the months of April, May and June were near zero.

Mr. Skeete said that the country’s new remote worker visa program will help with those numbers. “A 12-month period will allow visitors to experience the country in a holistic way,” he said.

More than 1,000 applications from around the world were submitted within the first week, the country said, with the majority of responses from the United States, Canada, and Britain.

Read the complete article here.

Uber likely to shut down in California for over a year if new ruling not overturned

From today’s NBC News Online:

In new court filings Wednesday, a top Uber official said the company would “almost certainly need to shut down” ride services in California for “likely more than a year” if a judge’s groundbreaking ruling issued this week is upheld on appeal.

In a new four-page declaration, Brad Rosenthal, Uber’s director of strategic operational initiatives, said that if the company has to reclassify the bulk of its workforce as employees rather than contractors, it will “force Uber to dramatically restructure its entire business model and its relationships with drivers and riders.”

In a call with investors Wednesday, Lyft CEO John Zimmer said the company would likely also suspend operations in the state for similar reasons.

Earlier Wednesday, Uber CEO Dara Khosrowshahi said the company would halt service in its home state of California for a few months if a judge’s groundbreaking ruling this week is upheld on appeal.

“We will have to shut down until November,” Khosrowshahi told MSNBC’s Stephanie Ruhle in an interview.

On Monday, Judge Ethan Schulman of the San Francisco County Superior Court found that there was an “overwhelming likelihood” that both Uber and Lyft had misclassified drivers as contractors rather than employees. Drivers make up the bulk of those companies’ labor forces.

The ruling was the latest twist in a lawsuit brought against the companies in May by the state’s attorney general. Schulman put a hold on enforcement of his ruling for 10 days pending appeal.

In the new filings, both companies asked the judge to at least extend this hold period beyond 10 days while they begin the appeals process. Schulman is set to hold a hearing on this issue Thursday.

Read the complete article here.

California lawmakers ask Newsom to act immediately on unemployment claims

From Los Angeles Times:

More than half the members of the California Legislature called on Gov. Gavin Newsom on Wednesday to immediately begin paying unemployment benefits to many of the more than 1 million jobless workers whose claims have been stalled in the system as the state works to clear a months-long backlog.

In a letter to governor, a bipartisan group of 61 lawmakers issued a series of requests for immediate action at the state Employment Development Department, including calls for the agency to ensure service representatives do not hang up on callers who they can’t help, and implement an automatic call-back system to quickly respond to those who cannot reach a live operator. The lawmakers also called for the agency to expedite its approval of unemployment benefits by retroactively certifying claims and resolving issues later in the process.

“In our fifth month of the pandemic, with so many constituents yet to receive a single unemployment payment, it’s clear that EDD is failing California,” said the letter to Newsom. “Millions of our constituents have had no income for months. As Californians wait for answers from EDD, they have depleted their life savings, have gone into extreme debt, and are in deep panic as they figure out how to put food on the table and a roof over their heads.”

EDD spokeswoman Loree Levy said the agency is reviewing the letter and will provide a response as soon as possible. The governor’s office did not immediately respond to requests for comment on the letter’s recommendations.

The letter, which was organized by Assemblyman David Chiu (D-San Francisco), was signed by 49 members of the Assembly and 12 members of the state Senate, including Senate Republican Leader Shannon Grove of Bakersfield, and sent a week after Newsom announced the creation of a “strike team” to reform EDD and complete all unanswered claims by the end of September.

The governor said the claims are from those who may be eligible for payment but require more information. Many claims are “pending resolution” because they have issues to resolve, including verification of the identity of the filer, he said.

The legislators said in their letter that the backlog should be cleared sooner than the end of September and that, in the interim, Californians with stalled claims should receive some portion of their benefits to help them make ends meet.

Read the complete article here.

Coronavirus relief talks restart as jobless aid divides GOP and Democrats

From today’s CNBC News Online:

Democrats and Trump administration officials will sit down again Monday afternoon to try to hammer out an elusive deal on a fifth coronavirus aid bill. 

Negotiators House Speaker Nancy Pelosi, D-Calif., Senate Minority Leader Chuck Schumer, D-N.Y., Treasury Secretary Steven Mnuchin and White House chief of staff Mark Meadows plan to meet at 1 p.m. ET as the sides find themselves far from an agreement. The discussions will follow Sunday’s staff-level talks on a package to help rein in a raging pandemic and jolt a flailing U.S. economy. 

The effort has gained urgency after a $600 per week federal unemployment benefit expired at the end of July. The extra aid has helped tens of millions of jobless people afford food and housing as the economy reels during the outbreak. 

Pelosi has indicated the sides made more progress in talks over the weekend than they did in discussions last week. Asked Monday how far apart Democrats and Republicans are, the speaker said she would wait to see how Monday’s talks go. 

“Well, let’s see when we meet today,” she told CNN. “It’s absolutely essential that we reach agreement.” 

Disagreements over how to structure unemployment insurance have stood in the way of a deal. Democrats have insisted on continuing the $600 weekly sum. They passed a House bill in May to extend the aid into next year.

Republicans, who questioned the need for more pandemic relief before they released a proposal last week, want to slash the extra benefit to $200 per week through September. They would then set the aid at 70% wage replacement.

Read the complete article here.

Senate GOP, White House propose cuts to unemployment relief checks

From today’s ABC News Online:

Senate Majority Leader Mitch McConnell introduced a new coronavirus relief plan on the Senate floor after Senate Republican leaders and the White House appear to have overcome their differences.

“I hope this strong proposal will occasion a real response, not partisan cheap shots. Not the predictable, tired old rhetoric as though these were ordinary times, and the nation could afford ordinary politics,” McConnell said Monday afternoon in a floor speech.

But Democrats already don’t agree with the Republicans’ plan, which includes a $200 flat-rate, short-term extension to federal unemployment benefits as opposed to $600 a week, a senior source familiar with the matter confirmed to ABC News, since it will take time before states’ systems can shift to accommodate any federal benefit changes.

Following McConnell’s floor speech, Senate Minority Leader Chuck Schumer criticized the Republican Party for “wasting precious time” in the months since Congress passed its first coronavirus relief package, arguing “the White House and Senate Republicans couldn’t get their act together” in the time since.

“Ten weeks after Democrats passed a comprehensive bill through the House, Senate Republicans couldn’t even agree on what to throw in on the wall,” Schumer said, adding that support for the plan presented Monday is still not clear. “Not only do we not know if the president supports any of these proposals, we don’t even know if Senate Republicans fully support.”

Republican sources familiar with the matter told ABC News later Monday that there could be as much as half the Senate GOP conference voting against the bill.

Read the complete article here.

McConnell says stimulus deal may take ‘a few weeks,’ putting millions with expiring jobless aid in limbo

From today’s Washington Post:

With days to go before enhanced jobless benefits expire, the White House and Senate Republicans are struggling to design a way to scale back the program without overwhelming state unemployment agencies and imperiling aid to more than 20 million Americans.

The hang-up has led to an abrupt delay in the introduction of the GOP’s $1 trillion stimulus package. The White House and Democrats have said they want a deal by the end of the month, but Senate Majority Leader Mitch McConnell (R-Ky.) suggested Friday that reaching an agreement could take several weeks, a timeline that could leave many unemployed Americans severely exposed.

“Hopefully we can come together behind some package we can agree on in the next few weeks,” McConnell said at an event in Ashland, Ky.

Part of the problem stems from a push by administration officials and GOP lawmakers to reduce a $600 weekly payment of enhanced federal unemployment benefits. The White House and the GOP disagree about how to do this, and talks remain highly contentious. They hope to release a proposal early next week.

After convulsing in March and April when the coronavirus pandemic shut down large parts of the United States, the economy showed signs of regaining its footing before sliding again in recent weeks. The effects of numerous stimulus programs appear to be wearing off, and the pace of layoffs has picked up again. Layoffs that many Americans thought would be temporary have dragged on and become permanent, particularly as new cases of the novel coronavirus surge in parts of the country.

This has put enormous pressure on state unemployment programs, which typically pay out about 45 percent of a worker’s prior wages. In March, Congress approved the $600-per-week emergency bonus for every unemployed worker on top of that traditional payment, funneling hundreds of billions of dollars to newly jobless Americans as the pandemic hit the country.

That federal benefit, being received by more than 20 million people, is to expire at the end of this month. And the expiry comes as a federal eviction moratorium also is ending, creating a dynamic that could greatly stress cash-strapped families. In practice, the coming lapse in the jobless benefit means millions of workers are receiving their last enhanced benefit payment this week.

Read the complete article here.