After Using Government Authority to Help Destroy the Taxicab Industry, Lyft Emerges as Fundraising Heavyweight in Massachusetts ahead of Vote on Gig Work Ballot Initiative to Rip-Off its Workers

From [HERE] Gig work-based companies such as food delivery apps and rideshare services are pouring millions into supporting a Massachusetts ballot initiative that would solidify their workers’ status as independent contractors instead of employees.

Rideshare company Lyft has already given a hefty $14 million in support of the Massachusetts measure, in hopes of being able to classify their drivers as independent contractors, which would allow Lyft to not provide drivers certain employee benefits such as health insurance and paid vacation.

The Massachusetts ballot initiative, which would classify app-based drivers as independent contractors and enact labor policies, could appear on the ballot during the state’s Nov. 8 election pending either legislature approval or further signature collection.

The issue of gig work classification was first raised statewide last year in California. 

A ballot measure that would allow gig workers to be classified as independent contractors in most cases — Prop. 22 — passed in 2020, handing a big win to gig work-based companies that put more than $200 million behind the measure, according to OpenSecrets data. Although the measure passed, a judge later ruled it unconstitutional and an appeal is pending.

Now, as Massachusetts considers a proposition similar to Prop. 22, companies are replicating their strategy from 2020 by throwing millions of dollars into the effort.

In addition to Lyft’s $14 million, Uber, DoorDash and Instacart have each injected more than $1 million into funding the Massachusetts measure.

According to the Boston Globe, Lyft’s donation is the largest political contribution the state has ever recorded — easily surpassing the previous record of General Motors’ $5.1 million contribution to fight a successful 2020 ballot measure that would allow auto shops to access more information about the cars they repair.

The majority of Lyft’s $14 million came in the form of a $13 million donation given on Dec. 30. Prior to the end-of-year contribution, Instacart had given the largest single sum of about $978,000.

The Massachusetts measure would classify gig workers as independent contractors instead of employees while providing some benefits, including establishing a pre-tips earning floor equivalent to 120% of the state’s minimum wage and health care stipends for those who work more than 15 hours per week. [MORE]