California Sues Uber and Lyft, Claiming Workers Are Misclassified

From today’s New York Times:

California’s attorney general and a coalition of city attorneys in the state sued Uber and Lyft on Tuesday, claiming the companies wrongfully classified their drivers as independent contractors in violation of a state law that makes them employees.

The law, known as Assembly Bill 5, requires companies to treat their workers as employees instead of contractors if they control how workers perform tasks or if the work is a routine part of a company’s business.

At least one million gig workers in the state are affected by the law, which is supposed to give them a path to benefits like a minimum wage and unemployment insurance that have been traditionally withheld from independent contractors.

Although A.B. 5 took effect on Jan. 1, Uber, Lyft and other gig economy companies that operate in California have resisted and are not taking steps to reclassify their drivers. Uber, Lyft and DoorDash have poured $90 million into a campaign for a ballot initiative that would exempt them from complying with the law. Uber has also argued that its core business is technology, not rides, and therefore drivers are not a key part of its business.

The lawsuit also claims the ride-hailing companies are engaging in an unfair business practice that harms other California companies that follow the law. By avoiding payroll taxes and not paying minimum wage, Uber and Lyft are able to provide rides at “an artificially low cost,” the suit claims, giving them a competitive advantage over other businesses. The suit seeks civil penalties and back wages for workers that could add up to hundreds of millions of dollars.

“California has ground rules with rights and protections for workers and their employers. We intend to make sure that Uber or Lyft play by the rules,” Xavier Becerra, California’s attorney general, said in a statement. The city attorneys of San Francisco, Los Angeles and San Diego joined in the lawsuit.

California’s move is a significant threat to the gig companies and could influence other states with similar laws to take action against them, labor experts said.

Read the complete article here.

Thousands of health care workers are laid off as coronavirus spreads

From today’s Los Angeles Times:

Healthcare workers, championed as heroes of the COVID-19 crisis and applauded for risking their lives to protect others, have been hit especially hard by the severe economic fallout wrought by the pandemic.

In California, thousands of nurses, doctors and other medical staff have been laid off or furloughed or have taken a pay cut since mid-March. The pain has been felt broadly, from major facilities such as Stanford Health Care to tiny rural hospitals to private practitioners. Across the nation, job losses in the healthcare sector have been second only to those in the restaurant industry, according to federal labor statistics.

Hospitals and doctors’ offices lost billions in revenue when they canceled elective surgeries and non-emergent visits to prepare for a possible surge in COVID-19 patients and to reduce the spread of the virus.

Patients also began scheduling fewer appointments and avoiding the hospital, even for medical emergencies, creating another hit for providers who were already hurting. The surge, in places where it did arrive, was not enough to compensate for the losses, experts say.

American healthcare is a business, and the economics are simple: Fewer patients means less money. And though some California hospitals are beginning to schedule elective surgeries again, experts say the healthcare industry is unlikely to bounce back immediately, as large swaths of the population are now struggling to make ends meet and may continue to avoid or put off medical care.

Read the complete article here.

5 questions answered about workers’ rights during the coronavirus pandemic

From today’s PBS NewsHour Online:

Roughly 26 million have filed for unemployment benefits in the United States the wake of the COVID-19 pandemic. Millions of others are risking safety to work in essential roles, or are navigating new challenges working at home. So what rights should workers, or the newly unemployed, be aware of?

Nawaz and Conti addressed a broad swath of audience questions on everything from employee recourse, to support for working parents, to unemployment benefits. You can read highlights from their conversation below.

What should be top of mind for people who have to physically go back to work?

A number of states have started to allow businesses to reopen, despite the recommendations of many public health officials, who say this could worsen the spread of novel coronavirus.

If you do have to go back to work, Conti stressed that you should consult the CDC for guidance on the protective equipment you need in order to do your job safely. “Make sure when you go back, that your employer is giving you what you need, whether it’s gloves, masks, hand sanitizer, or frequent opportunities to go to the bathroom to wash your hands,” Conti said.

Could there be recourse for employees who don’t feel safe at work?

If you don’t feel that your employer has provided the proper protections for you to return to work in the midst of the COVID-19 crisis, Conti said you “do have the legal right to stand up for healthy and safe treatment on the job.” You can do so by filing a complaint with the Occupational Safety and Health Administration.

“I can’t sit here and tell you that an employer might not retaliate and might not either treat you worse on the job, or perhaps fire you, and I certainly hope not, but you do have the legal right to stand up for healthy and safe treatment on the job,” Conti said.

If you feel that you’ve been retaliated against by your employer for asking for more protections as part of an organized group such as a union, you can file a complaint with the National Labor Relations Board.

Read the complete article here.

Trump Halts New Green Cards, but Backs Off Ban for Migrant Workers

From today’s New York Times:

After pledging on Twitter to end immigration during the pandemic, President Trump moved to block new green cards but stopped short of ending all work visas.

President Trump said on Tuesday that he would order a temporary halt in issuing green cards to prevent people from immigrating to the United States, but he backed away from plans to suspend guest worker programs after business groups exploded in anger at the threat of losing access to foreign labor.

Mr. Trump, whose administration has faced intense criticism in recent months for his handling of the coronavirus crisis, abruptly sought to change the subject Tuesday night by resuming his assault on immigration, which animated his 2016 campaign and became one of the defining issues of his presidency.

He cast his decision to “suspend immigration,” which he first announced on Twitter Monday night, as a move to protect American jobs. But it comes as the United States economy sheds its work force at a record rate and when few employers are reaching out for workers at home or abroad. More than 22 million Americans have lost their jobs in the economic devastation caused by the virus and efforts to contain it.

Mr. Trump said that his order would initially be in effect for 60 days, but that he might extend it “based on economic conditions at the time.”

While numerous studies have concluded that immigration has an overall positive effect on the American work force and wages for workers, Mr. Trump ignored that research on Tuesday, insisting that American citizens who had lost their jobs in recent weeks should not have to compete with foreigners when the economy reopens.

Read the complete article here.

How the Coronavirus Could Create a New Working Class

From today’s Atlantic Online:

Late last month, a photo circulated of delivery drivers crowding around Carbone, a Michelin-starred Greenwich Village restaurant, waiting to pick up $32 rigatoni and bring it to people who were safely ensconced in their apartment. A police officer, attempting to spread out the crowd, reportedly said, “I know you guys are just out here trying to make money. I personally don’t give a shit!” The poor got socially close, it seems, so that the rich could socially distance.

The past few weeks have exposed just how much a person’s risk of infection hinges on class. Though people of all incomes are at risk of being laid off, those who can work from home are at least less likely to get sick. The low-income workers who do still have jobs, meanwhile, are likely to be stuck in close quarters with other humans. For example, grocery-store clerks face some of the greatest exposure to the coronavirus, aside from health-care workers. “Essential” businesses—grocery stores, pharmacies—are about the only places Americans are still permitted to go, and their cashiers stand less than an arm’s length from hundreds of people a day.

My inboxes have filled up with outcries from workers at big-box retailers, grocery stores, and shipping giants who say their companies are not protecting them. They say people are being sent into work despite having been in contact with people infected with the virus. They say the company promised to pay for their quarantine leave, but the payment has been delayed for weeks and they are running out of money. Or the company denied their medical leave because they don’t have proof of a nearly impossible-to-get COVID-19 test. Or the company doesn’t offer paid medical leave at all, and they’re wondering how they’ll pay for gas once they recover from the disease.

Masks are in short supply nationwide, and some managers have resisted allowing workers to wear them, fearing it will disrupt the appearance of normalcy. Some companies have rolled out “hazard pay” for employees, but in many cases it amounts to about $2 more an hour. The Amazon employees I’ve spoken with largely work fewer than 30 hours a week, and the company does not provide them with health insurance. One Walmart employee used up all his attendance “points” while sick with the virus, and was fired upon his return to work. (Walmart did not comment on his situation for my story.) At least 41 grocery-store workers have already died from the virus. “I make $14.60 an hour and don’t qualify for health care yet,” one grocery-store employee in New Mexico wrote to me. “I am freaked out.”

Meanwhile, many white-collar workers have no “points” system. Many such jobs offer as much paid time off as an employee and her manager agree to—a concept far beyond even the most generous policies at grocery stores. Many PR specialists, programmers, and other white-collar workers are doing their exact same job, except from the comfort of their home. Some are at risk of being laid off. But for the most part, they are not putting their lives in danger, except by choice.

Read the complete article here.

Sen. Elizabeth Warren (D-MA) wants a bill of rights for essential workers

From today’s Boston.com:

Elizabeth Warren says the next coronavirus relief package should “put all workers front and center.” But the Massachusetts senator is also proposing a slate of new protections for those who don’t have the luxury of staying at home during the pandemic.

Warren and California Rep. Ro Khanna unveiled an “Essential Workers Bill of Rights” on Monday aimed at boosting protections and benefits for the employees most exposed to COVID-19.

Experts say between 49 million and 62 million Americans are employed by industries designated as “essential” by the federal government. And while health care employees are viewed to be at the greatest risk of contracting the disease, the list also includes other “frontline” workers whose jobs continue to require them to be in close contact with other people during the outbreak, from grocery store workers and janitors to truck drivers and transportation employees to government and child care workers.

“Essential workers are the backbone of our nation’s response to coronavirus,” said Warren, who has called on Congress to end its weeks-long recess to pass additional legislation in response to the economic and public health crises wrought by the pandemic.

The federal government has issued some guidance for workers in the food retail industry, but Warren and Khanna want Congress to strengthen and expand those policies in the next relief package,

Their “Essential Workers Bill of Rights” proposal would require employers to provide all frontline workers with personal protective equipment and robust hazard pay “retroactive to the start date of the pandemic.” It would create a program to require — and reimburse — employers to provide up to 14 days of paid sick leave and 12 weeks of paid family and medical leave during the public health crisis.

Read the complete article here.

Could the Pandemic Wind Up Fixing What’s Broken About Work in America?

From today’s New York Times:

Crises like pandemics, economic collapses and world wars have, at times throughout history, ended up reordering societies — shrinking the gap between the rich and the poor, or empowering the working class. The Black Death helped end feudalism. The Great Depression helped lead to the New Deal. Never has extreme economic inequality shrunk in a meaningful way, says the Stanford historian Walter Scheidel, without a major crisis.

The coronavirus pandemic, as of now, is not on the order of the plague, but it’s hitting the United States during a period of agitation about worsening inequality and waning power for workers. Already, it has made stark how precarious life is for many American workers, causing some to revolt. How employers and policymakers respond could improve work in the United States for the long term — or make the existing problems worse.

“Pandemics as a social shock do give workers more leverage to demand things,” said Patrick Wyman, a historian and host of the Tides of History podcast. “Crises like these reveal what is already broken or in the process of breaking.”

“They are attacks on a particular socioeconomic way of organizing your society,” he said. “The question is whether your institutions can make collective things happen.”

The United States is distinctive among rich countries in its lack of worker protections like nationwide paid sick leave, paid family leave and universal health insurance, and in its minimal labor union membership. For both high and low earners, many employers expect workers to be on call around the clock. Companies are typically beholden to shareholders first, above employees, customers and communities.

But the coronavirus pandemic has shown the flaw in that logic: Worker well-being is the foundation for everything else.

Read the complete article .

Grocery workers are beginning to die of coronavirus

From today’s Washington Post:

Major supermarket chains are beginning to report their first coronavirus-related employee deaths, leading to store closures and increasing anxiety among grocery workers as the pandemic intensifies across the country.

A Trader Joe’s worker in Scarsdale, N.Y., a greeter at a Giant store in Largo, Md., and two Walmart employees from the same Chicago-area store have died of covid-19, the disease the novel coronavirus causes, in recent days, the companies confirmed Monday.

Though more than 40 states have ordered nonessential businesses to close and told residents to stay home to stem the spread of the virus, supermarkets are among the retailers that remain open. Thousands of grocery employees have continued to report to work as U.S. infections and death rates continue to climb, with many reporting long shifts and extra workloads to keep up with spiking demand. Many workers say they don’t have enough protective gear to deal with hundreds of customers a day. Dozens of grocery workers have tested positive for the coronavirus in recent weeks.

Industry experts say the rise of worker infections and deaths will likely have a ripple effect on grocers’ ability to retain and add new workers at a time when they’re looking to rapidly hire thousands of temporary employees. Walmart, the nation’s largest grocer, is hiring 150,000 workers, while Kroger is adding more than 10,000. Many are offering an extra $2 an hour and promising masks, gloves and hand sanitizer. But finding people willing to work on the front lines for little more than the minimum wage could be an increasingly tough sell, according to supermarket analyst Phil Lempert.

“One of the biggest mistakes supermarkets made early on was not allowing employees to wear masks and gloves the way they wanted to,” he said. “They’re starting to become proactive now, but it’s still going to be much tougher to hire hundreds of thousands of new workers. We’re going to start seeing people say, ‘I’ll just stay unemployed instead of risking my life for a temporary job.’ “

Read the complete article here.

Freelancers can get unemployment pay for jobs lost to coronavirus

From today’s Los Angeles Times:

New coronavirus laws provide a litany of benefits to the self-employed, freelancers and workers in the gig economy. But what are the benefits, and how do you claim them? Here are some answers explaining how the laws impact freelancers.

I lost my part-time gig because of the coronavirus lockdown. Can I claim unemployment insurance?

Yes. The federal CARES Act creates a temporary Pandemic Unemployment Assistance program, which provides unemployment insurance coverage to self-employed individuals, independent contractors and those with limited work history. (You must be available for work but unable to do your job as the result of the pandemic.) All of these individuals were barred from claiming state unemployment insurance benefits prior to the passage of this law.

How much will I get?

That depends on where you live. Each state operates its own unemployment insurance program. Requirements and pay-out ratios vary from state to state. For instance, California’s unemployment insurance program provides about 46% of working wages, up to set limits. Maximum unemployment benefits amount to $450 a week.

Thus, if you previously earned $1,000 a week ($4,000 a month), you’d get $450 in weekly unemployment coverage, or $1,800 per month from the state of California. The new CARES Act adds a federal payment of $600 a week to that. So, this hypothetical worker could get as much as $4,200 a month.

However, if you live in Alabama, the state’s maximum weekly benefit caps out at $275. Thus, an unemployed worker in Alabama would receive a top benefit of $1,100, plus $600 weekly from the CARES Act, for a total of $3,500.

Read the complete article here.

A 3,000% jump in jobless claims has devastated the US job market

From today’s CNN Online:

The last three weeks have marked one of the most devastating periods in history for the American job market, as first-time claims for unemployment benefits have surged more than 3,000% since early March. Businesses continue to lay off and furlough workers amid the coronavirus outbreak.6.6 million US workers filed for their first week of unemployment benefits in the week ending March 28, according to the Department of Labor — a new historic high.

That was far greater than economists had expected, and more than 3,000% the pre-pandemic levels. Unemployment claims at this level suggest a severe job market decline hardly any American alive has ever seen in their lifetimes.

Economists characterized the increase as “monstrous,” “stunningly awful,” and “a portrait of disaster.”Including the prior week’s 3.3 million initial claims, Americans have filed nearly 10 million jobless claims in the last two weeks alone. That corresponds to roughly 6% of America’s 165 million strong work force, which in turn implies a 9.5% unemployment rate, according to Citi economist Andrew Hollenhorst.

Read the complete article here.