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"content": "\u003cp>Ride-hailing companies will be allowed to serve riders on San Francisco’s Market Street 24 hours a day starting later this month, despite pleas from safe streets activists \u003ca href=\"https://www.kqed.org/news/12053305/advocates-warn-of-dangerous-and-chaotic-market-st-as-it-reopens-to-some-cars\">to return to a car-free roadway\u003c/a>.\u003c/p>\n\u003cp>Waymo and select Uber and Lyft vehicles are set to enter the third and final phase of a pilot program to allow the companies to drop off and pick up passengers on the road that’s been shuttered to cars since 2020, San Francisco Municipal Transportation Agency Director Julie Kirschbaum told the organization’s Board of Directors Tuesday.\u003c/p>\n\u003cp>“So far, activity has been fairly limited, and importantly, there have been no detrimental outcomes to our key transportation metrics,” Kirschbaum said. “Based on their findings, I believe this is a good time to shift to the next stage.”\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>In August, the city allowed Waymo, Lyft and Uber Black cars to begin dropping off and picking up riders at seven loading bays along a two-mile stretch of Market Street during limited hours, in accordance with city policy.\u003c/p>\n\u003cp>The commercial vehicles have not been legally obligated to stay off the road under SFMTA traffic regulations, though \u003ca href=\"https://www.kqed.org/news/12035348/mayor-lurie-allows-waymo-on-sfs-car-free-market-street\">Waymo confirmed in April that it had\u003c/a> voluntarily refrained from operating there until the summer.\u003c/p>\n\u003cfigure id=\"attachment_12053385\" class=\"wp-caption aligncenter\" style=\"max-width: 2000px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-12053385\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2025/08/IMG_0527_qed.jpg\" alt=\"\" width=\"2000\" height=\"1333\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2025/08/IMG_0527_qed.jpg 2000w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/08/IMG_0527_qed-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/08/IMG_0527_qed-1536x1024.jpg 1536w\" sizes=\"auto, (max-width: 2000px) 100vw, 2000px\">\u003cfigcaption class=\"wp-caption-text\">An Uber and Lyft driver drops off a customer in San Francisco’s downtown neighborhood on Aug. 31, 2015. \u003ccite>(Ericka Cruz Guevarra/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Market Street had been completely car-free since January 2020, after more than a decade of advocacy from biking, pedestrian and transit supporters. The move was part of the citywide “Better Market Street” \u003ca href=\"https://bettermarketstreetsf.org/about.html\">proposal\u003c/a>, which aimed to transform the city’s central roadway to “connect the City’s Civic Center with cultural, social, convention, tourism, and retail destinations.”\u003c/p>\n\u003cp>But Mayor Daniel Lurie has said that reopening Market Street to some ride-hailing cars was key to his plan for downtown revitalization.\u003c/p>\n\u003cp>“The Market Street corridor is key to our city’s recovery, and by thoughtfully expanding transportation options, we are going to bring residents and visitors back to enjoy everything Market Street has to offer,” he said in a statement when the pilot launched in August. “We are identifying the tools to get people back to our theaters, hotels, and restaurants, and drive San Francisco’s comeback.”\u003c/p>\n\u003cp>For the past three months, Waymo has been allowed to pick up and drop off passengers at seven locations between Fifth and Eighth streets between 9 a.m. and 4 p.m., and overnight from 7 p.m. to 6 a.m. They’ve had permission to drive on the strip between Van Ness Avenue and Steuart Street.[aside postID=news_12063805 hero='https://cdn.kqed.org/wp-content/uploads/sites/10/2025/11/WaymoSFGetty.jpg']Uber and Lyft Black — or premium line — cars have been allowed to operate at those same locations during the evening and night hours, from 7 p.m. to 6 a.m.\u003c/p>\n\u003cp>So far, Jenny Delumo with SFMTA’s Streets Division said there’s been virtually no impact on travel time along Market, and no decrease in Muni ridership or bike use. She did note, however, that some bikers and pedestrians have raised concerns about the vehicles’ return.\u003c/p>\n\u003cp>Kirschbaum said that SFMTA will continue monitoring impacts as companies scale up their operations. The agency plans to return to the board of directors in mid-2026 with a full evaluation of the pilot program and recommendations for future vehicle access.\u003c/p>\n\u003cp>While the Mid Market Community Benefits District, a nonprofit that promotes local businesses, praised the rideshare expansion and asked SFMTA to reopen Market Street to all traffic, safe street advocacy groups are pushing for the city to reverse course.\u003c/p>\n\u003cp>San Francisco Bicycle Coalition Executive Director Christopher White said the organization’s thousand members are feeling the impact of a more crowded roadway during public comment at SFMTA’s meeting on Tuesday. He also questioned the value of opening the road, claiming that the ride-hailing apps have continued to avoid drop-offs and pick-ups because the seven loading bays are often full.\u003c/p>\n\u003cfigure id=\"attachment_11944379\" class=\"wp-caption aligncenter\" style=\"max-width: 2000px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"wp-image-11944379 size-full\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2023/03/RS16535_IMG_0443.JPG-scaled-e1764810192572.jpg\" alt=\"A closeup shot of a black vehicle with a pink Lyft sticker and a black and white Uber sticker on the left side of its windshield. The vehicle sits idle, waiting to pick up a customer.\" width=\"2000\" height=\"1334\">\u003cfigcaption class=\"wp-caption-text\">San Francisco Transit officials greenlit an expansion of rideshare operations to 24-hour-a-day service on San Francisco’s downtown Market Street. \u003ccite>(Ericka Cruz Guevarra/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>At the same time, though, he said the expansion has led to “more private vehicles illegally driving on Market Street.\u003c/p>\n\u003cp>“And who can blame them, when to all appearances, Market Street is back open to cars?” White said.\u003c/p>\n\u003cp>Walk SF Executive Director Jodie Medeiros urged SFMTA to adopt its own community advisory committee’s motion, presented last month, to close the loophole in city policy that allows commercial vehicles to operate. The committee recommended limiting commercial operations to just goods deliveries to businesses.\u003c/p>\n\u003cp>“We can’t go back to a dangerous and chaotic Market Street,” she said. “More autonomous vehicle companies, including Tesla, are coming to San Francisco streets and will bring thousands more trips every day. And they’ll want, or just take, the access that Waymo is getting now.\u003c/p>\n\u003cp>“If it becomes a dangerous, congested mess again, it is going to seriously harm transit service and safety, and it certainly will not help the economic recovery of downtown,” she continued.\u003c/p>\n\u003cp>\u003c/p>\n",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003cp>Ride-hailing companies will be allowed to serve riders on San Francisco’s Market Street 24 hours a day starting later this month, despite pleas from safe streets activists \u003ca href=\"https://www.kqed.org/news/12053305/advocates-warn-of-dangerous-and-chaotic-market-st-as-it-reopens-to-some-cars\">to return to a car-free roadway\u003c/a>.\u003c/p>\n\u003cp>Waymo and select Uber and Lyft vehicles are set to enter the third and final phase of a pilot program to allow the companies to drop off and pick up passengers on the road that’s been shuttered to cars since 2020, San Francisco Municipal Transportation Agency Director Julie Kirschbaum told the organization’s Board of Directors Tuesday.\u003c/p>\n\u003cp>“So far, activity has been fairly limited, and importantly, there have been no detrimental outcomes to our key transportation metrics,” Kirschbaum said. “Based on their findings, I believe this is a good time to shift to the next stage.”\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>In August, the city allowed Waymo, Lyft and Uber Black cars to begin dropping off and picking up riders at seven loading bays along a two-mile stretch of Market Street during limited hours, in accordance with city policy.\u003c/p>\n\u003cp>The commercial vehicles have not been legally obligated to stay off the road under SFMTA traffic regulations, though \u003ca href=\"https://www.kqed.org/news/12035348/mayor-lurie-allows-waymo-on-sfs-car-free-market-street\">Waymo confirmed in April that it had\u003c/a> voluntarily refrained from operating there until the summer.\u003c/p>\n\u003cfigure id=\"attachment_12053385\" class=\"wp-caption aligncenter\" style=\"max-width: 2000px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-12053385\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2025/08/IMG_0527_qed.jpg\" alt=\"\" width=\"2000\" height=\"1333\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2025/08/IMG_0527_qed.jpg 2000w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/08/IMG_0527_qed-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/08/IMG_0527_qed-1536x1024.jpg 1536w\" sizes=\"auto, (max-width: 2000px) 100vw, 2000px\">\u003cfigcaption class=\"wp-caption-text\">An Uber and Lyft driver drops off a customer in San Francisco’s downtown neighborhood on Aug. 31, 2015. \u003ccite>(Ericka Cruz Guevarra/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Market Street had been completely car-free since January 2020, after more than a decade of advocacy from biking, pedestrian and transit supporters. The move was part of the citywide “Better Market Street” \u003ca href=\"https://bettermarketstreetsf.org/about.html\">proposal\u003c/a>, which aimed to transform the city’s central roadway to “connect the City’s Civic Center with cultural, social, convention, tourism, and retail destinations.”\u003c/p>\n\u003cp>But Mayor Daniel Lurie has said that reopening Market Street to some ride-hailing cars was key to his plan for downtown revitalization.\u003c/p>\n\u003cp>“The Market Street corridor is key to our city’s recovery, and by thoughtfully expanding transportation options, we are going to bring residents and visitors back to enjoy everything Market Street has to offer,” he said in a statement when the pilot launched in August. “We are identifying the tools to get people back to our theaters, hotels, and restaurants, and drive San Francisco’s comeback.”\u003c/p>\n\u003cp>For the past three months, Waymo has been allowed to pick up and drop off passengers at seven locations between Fifth and Eighth streets between 9 a.m. and 4 p.m., and overnight from 7 p.m. to 6 a.m. They’ve had permission to drive on the strip between Van Ness Avenue and Steuart Street.\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>Uber and Lyft Black — or premium line — cars have been allowed to operate at those same locations during the evening and night hours, from 7 p.m. to 6 a.m.\u003c/p>\n\u003cp>So far, Jenny Delumo with SFMTA’s Streets Division said there’s been virtually no impact on travel time along Market, and no decrease in Muni ridership or bike use. She did note, however, that some bikers and pedestrians have raised concerns about the vehicles’ return.\u003c/p>\n\u003cp>Kirschbaum said that SFMTA will continue monitoring impacts as companies scale up their operations. The agency plans to return to the board of directors in mid-2026 with a full evaluation of the pilot program and recommendations for future vehicle access.\u003c/p>\n\u003cp>While the Mid Market Community Benefits District, a nonprofit that promotes local businesses, praised the rideshare expansion and asked SFMTA to reopen Market Street to all traffic, safe street advocacy groups are pushing for the city to reverse course.\u003c/p>\n\u003cp>San Francisco Bicycle Coalition Executive Director Christopher White said the organization’s thousand members are feeling the impact of a more crowded roadway during public comment at SFMTA’s meeting on Tuesday. He also questioned the value of opening the road, claiming that the ride-hailing apps have continued to avoid drop-offs and pick-ups because the seven loading bays are often full.\u003c/p>\n\u003cfigure id=\"attachment_11944379\" class=\"wp-caption aligncenter\" style=\"max-width: 2000px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"wp-image-11944379 size-full\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2023/03/RS16535_IMG_0443.JPG-scaled-e1764810192572.jpg\" alt=\"A closeup shot of a black vehicle with a pink Lyft sticker and a black and white Uber sticker on the left side of its windshield. The vehicle sits idle, waiting to pick up a customer.\" width=\"2000\" height=\"1334\">\u003cfigcaption class=\"wp-caption-text\">San Francisco Transit officials greenlit an expansion of rideshare operations to 24-hour-a-day service on San Francisco’s downtown Market Street. \u003ccite>(Ericka Cruz Guevarra/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>At the same time, though, he said the expansion has led to “more private vehicles illegally driving on Market Street.\u003c/p>\n\u003cp>“And who can blame them, when to all appearances, Market Street is back open to cars?” White said.\u003c/p>\n\u003cp>Walk SF Executive Director Jodie Medeiros urged SFMTA to adopt its own community advisory committee’s motion, presented last month, to close the loophole in city policy that allows commercial vehicles to operate. The committee recommended limiting commercial operations to just goods deliveries to businesses.\u003c/p>\n\u003cp>“We can’t go back to a dangerous and chaotic Market Street,” she said. “More autonomous vehicle companies, including Tesla, are coming to San Francisco streets and will bring thousands more trips every day. And they’ll want, or just take, the access that Waymo is getting now.\u003c/p>\n\u003cp>“If it becomes a dangerous, congested mess again, it is going to seriously harm transit service and safety, and it certainly will not help the economic recovery of downtown,” she continued.\u003c/p>\n\u003cp>\u003c/p>\n\u003c/div>\u003c/p>",
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"slug": "sf-supervisors-propose-tax-on-wealthy-ceos-ride-hailing-companies-for-2026-ballot",
"title": "SF Supervisors Propose Tax on Wealthy CEOs, Ride-Hailing Companies for 2026 Ballot",
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"headTitle": "SF Supervisors Propose Tax on Wealthy CEOs, Ride-Hailing Companies for 2026 Ballot | KQED",
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"content": "\u003cp>San Francisco supervisors are looking to increase taxes on the city’s wealthiest executives and ride-hailing companies through a \u003ca href=\"https://media.api.sf.gov/documents/20251024_Gross_Receipts_Tax_Increase_for_Certain_Ride_Services.pdf?utm_campaign=power_play&utm_medium=email&utm_source=sfs_newsletter&utm_term=10_26_25\">November 2026 ballot measure\u003c/a>.\u003c/p>\n\u003cp>Supervisor Connie Chan said the move was urgent after Salesforce CEO Marc Benioff’s recent comments supporting President Donald Trump’s threats to send the National Guard to San Francisco, which triggered a \u003ca href=\"https://www.kqed.org/news/12060875/san-francisco-prepares-necessary-legal-action-if-trump-deploys-national-guard\">media firestorm\u003c/a> before Benioff \u003ca href=\"https://www.kqed.org/news/12060384/salesforce-ceo-marc-benioff-walks-back-call-for-national-guard-to-san-francisco\">walked back his remarks\u003c/a> and proved instrumental in getting Trump to abandon his plans for an immigration enforcement surge in the Bay Area.\u003c/p>\n\u003cp>“They make billions in profit off of the backs of workers in San Francisco, then they can have a throwaway line and throw the entire city into turmoil. It’s time to make sure they pay their fair share,” Chan told KQED.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>Chan’s proposal would ask city voters to reinstate the previous structure of the city’s Overpaid Executive Tax, which imposes a tax on businesses where the highest-paid executive earns more than 100 times the median compensation of San Francisco employees.. In November 2024, voters repealed parts of the executive tax through Proposition M, a comprehensive business tax reform measure. Chan’s proposal allows other changes made in Prop M to remain intact.\u003c/p>\n\u003cp>The plan would also raise taxes on ride-hailing companies, including Uber, Lyft and Waymo, similar to Proposition L on the November 2024 ballot. Although voters approved Prop L, the proposal did not take effect because Prop M included a provision that nullified the ride-share tax.\u003c/p>\n\u003cfigure id=\"attachment_12053307\" class=\"wp-caption aligncenter\" style=\"max-width: 2000px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-12053307\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2025/08/231102-DriverlessTaxi-15-BL_qed.jpg\" alt=\"\" width=\"2000\" height=\"1333\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2025/08/231102-DriverlessTaxi-15-BL_qed.jpg 2000w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/08/231102-DriverlessTaxi-15-BL_qed-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/08/231102-DriverlessTaxi-15-BL_qed-1536x1024.jpg 1536w\" sizes=\"auto, (max-width: 2000px) 100vw, 2000px\">\u003cfigcaption class=\"wp-caption-text\">A Waymo driverless taxi drives through Downtown San Francisco, California, on Nov. 2, 2023. \u003ccite>(Carlos Avila Gonzalez/SF Chronicle )\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>The ballot measure proposal needs only a 50% majority to pass, and could generate around $150-200 million annually. It has been submitted for a hearing before the Board of Supervisors Rules Committee; however, it automatically qualifies for the November 2026 ballot because four supervisors signed on — Chan, along with Supervisors Shamann Walton, Jackie Fielder and Chyanne Chen.\u003c/p>\n\u003cp>Chan, who represents the Richmond District, said the funding, which would not be earmarked for a specific purpose, is needed as the city weathers cuts from the federal government to healthcare, food benefits and the city’s public transportation system, which is facing a deficit of more than $300 million.\u003c/p>\n\u003cp>“Our city government is being put into an impossible position to step up to the plate, which is to say that this is the time and moment that billionaires need to pay their fair share,” Chan said. “We know that since January, they’ve gotten their way with the Trump administration through tax cuts.”[aside postID=news_12060384 hero='https://cdn.kqed.org/wp-content/uploads/sites/10/2024/02/ap20336794283031_custom-78b2f9039ebb1cd87ba3c4d3edf97a3854590c5a-1020x679.jpg']Other state and local officials have meanwhile put forward other ideas to solve the city’s funding gaps. Mayor Daniel Lurie is backing a \u003ca href=\"https://www.sf.gov/news-mayor-lurie-unveils-heart-of-the-city-executive-directive-to-accelerate-san-franciscos-economic-comeback\">parcel tax that would raise funding\u003c/a> for local public transit. State Sens. Scott Wiener (D-San Francisco) and Jesse Arreguín (D-Berkeley) have put forward a \u003ca href=\"https://www.kqed.org/news/12032607/first-look-at-2026-tax-proposal-to-keep-bay-area-transit-running\">regional sales tax for the November 2026\u003c/a> ballot to fund Bay Area transit agencies.\u003c/p>\n\u003cp>Lurie has not publicly commented on the recent progressive business tax measure.\u003c/p>\n\u003cp>Earlier this year, the mayor moved to \u003ca href=\"https://www.sf.gov/news-mayor-lurie-announces-next-phase-of-waymo-operations-on-market-street-to-drive-downtowns-comeback-with-new-transportation-options-coming-to-market-street-august-26\">allow Waymo’s autonomous vehicles\u003c/a> to drive along the stretch of Market Street where cars are prohibited, stirring backlash from Uber and Lyft, as well as public transportation and bicycle advocates.\u003c/p>\n\u003cp>“This measure would hinder the city’s comeback by making rides more expensive and hurting drivers,” said CJ Macklin, director of communications at Lyft. “This would be particularly devastating for low-income communities who struggle to even access the Muni system and depend on ride-share to get around. It’s the wrong move for San Francisco.”\u003c/p>\n\u003cp>“This TNC tax hits people who most rely on our platform to move and work,” a spokesperson for Uber said in an email. “It is irresponsible and blatantly ignores the city’s affordability crisis, less than a year after voters overwhelmingly approved business tax reform [Prop M] to encourage our city’s recovery.”\u003c/p>\n\u003cp>Waymo did not immediately respond to requests for comment.\u003c/p>\n\u003cp>Supervisor Matt Dorsey, who represents downtown and Mission Bay, where many major companies and ride-share services are based, did not co-sign the paperwork for the proposal.\u003c/p>\n\u003cp>But he said he’s open to a tax on ride-hailing companies to fund public transportation, and supported Prop L in 2024.\u003c/p>\n\u003cp>“My big worry as the downtown supervisor when we ask for funding for our transit service and Muni, in particular, it needs to be a tax that’s fair, reasonable and sufficient to solve the problem,” Dorsey said. “I would like for everybody to get on the same page. Public transit is something that we can’t afford to lose.”\u003c/p>\n\u003cp>\u003c/p>\n",
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"excerpt": "San Francisco supervisors say recent comments from Salesforce CEO Marc Benioff warrant the proposed hike to the city’s Overpaid Executive Tax.",
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"title": "SF Supervisors Propose Tax on Wealthy CEOs, Ride-Hailing Companies for 2026 Ballot | KQED",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003cp>San Francisco supervisors are looking to increase taxes on the city’s wealthiest executives and ride-hailing companies through a \u003ca href=\"https://media.api.sf.gov/documents/20251024_Gross_Receipts_Tax_Increase_for_Certain_Ride_Services.pdf?utm_campaign=power_play&utm_medium=email&utm_source=sfs_newsletter&utm_term=10_26_25\">November 2026 ballot measure\u003c/a>.\u003c/p>\n\u003cp>Supervisor Connie Chan said the move was urgent after Salesforce CEO Marc Benioff’s recent comments supporting President Donald Trump’s threats to send the National Guard to San Francisco, which triggered a \u003ca href=\"https://www.kqed.org/news/12060875/san-francisco-prepares-necessary-legal-action-if-trump-deploys-national-guard\">media firestorm\u003c/a> before Benioff \u003ca href=\"https://www.kqed.org/news/12060384/salesforce-ceo-marc-benioff-walks-back-call-for-national-guard-to-san-francisco\">walked back his remarks\u003c/a> and proved instrumental in getting Trump to abandon his plans for an immigration enforcement surge in the Bay Area.\u003c/p>\n\u003cp>“They make billions in profit off of the backs of workers in San Francisco, then they can have a throwaway line and throw the entire city into turmoil. It’s time to make sure they pay their fair share,” Chan told KQED.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>Chan’s proposal would ask city voters to reinstate the previous structure of the city’s Overpaid Executive Tax, which imposes a tax on businesses where the highest-paid executive earns more than 100 times the median compensation of San Francisco employees.. In November 2024, voters repealed parts of the executive tax through Proposition M, a comprehensive business tax reform measure. Chan’s proposal allows other changes made in Prop M to remain intact.\u003c/p>\n\u003cp>The plan would also raise taxes on ride-hailing companies, including Uber, Lyft and Waymo, similar to Proposition L on the November 2024 ballot. Although voters approved Prop L, the proposal did not take effect because Prop M included a provision that nullified the ride-share tax.\u003c/p>\n\u003cfigure id=\"attachment_12053307\" class=\"wp-caption aligncenter\" style=\"max-width: 2000px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-12053307\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2025/08/231102-DriverlessTaxi-15-BL_qed.jpg\" alt=\"\" width=\"2000\" height=\"1333\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2025/08/231102-DriverlessTaxi-15-BL_qed.jpg 2000w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/08/231102-DriverlessTaxi-15-BL_qed-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/08/231102-DriverlessTaxi-15-BL_qed-1536x1024.jpg 1536w\" sizes=\"auto, (max-width: 2000px) 100vw, 2000px\">\u003cfigcaption class=\"wp-caption-text\">A Waymo driverless taxi drives through Downtown San Francisco, California, on Nov. 2, 2023. \u003ccite>(Carlos Avila Gonzalez/SF Chronicle )\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>The ballot measure proposal needs only a 50% majority to pass, and could generate around $150-200 million annually. It has been submitted for a hearing before the Board of Supervisors Rules Committee; however, it automatically qualifies for the November 2026 ballot because four supervisors signed on — Chan, along with Supervisors Shamann Walton, Jackie Fielder and Chyanne Chen.\u003c/p>\n\u003cp>Chan, who represents the Richmond District, said the funding, which would not be earmarked for a specific purpose, is needed as the city weathers cuts from the federal government to healthcare, food benefits and the city’s public transportation system, which is facing a deficit of more than $300 million.\u003c/p>\n\u003cp>“Our city government is being put into an impossible position to step up to the plate, which is to say that this is the time and moment that billionaires need to pay their fair share,” Chan said. “We know that since January, they’ve gotten their way with the Trump administration through tax cuts.”\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>Other state and local officials have meanwhile put forward other ideas to solve the city’s funding gaps. Mayor Daniel Lurie is backing a \u003ca href=\"https://www.sf.gov/news-mayor-lurie-unveils-heart-of-the-city-executive-directive-to-accelerate-san-franciscos-economic-comeback\">parcel tax that would raise funding\u003c/a> for local public transit. State Sens. Scott Wiener (D-San Francisco) and Jesse Arreguín (D-Berkeley) have put forward a \u003ca href=\"https://www.kqed.org/news/12032607/first-look-at-2026-tax-proposal-to-keep-bay-area-transit-running\">regional sales tax for the November 2026\u003c/a> ballot to fund Bay Area transit agencies.\u003c/p>\n\u003cp>Lurie has not publicly commented on the recent progressive business tax measure.\u003c/p>\n\u003cp>Earlier this year, the mayor moved to \u003ca href=\"https://www.sf.gov/news-mayor-lurie-announces-next-phase-of-waymo-operations-on-market-street-to-drive-downtowns-comeback-with-new-transportation-options-coming-to-market-street-august-26\">allow Waymo’s autonomous vehicles\u003c/a> to drive along the stretch of Market Street where cars are prohibited, stirring backlash from Uber and Lyft, as well as public transportation and bicycle advocates.\u003c/p>\n\u003cp>“This measure would hinder the city’s comeback by making rides more expensive and hurting drivers,” said CJ Macklin, director of communications at Lyft. “This would be particularly devastating for low-income communities who struggle to even access the Muni system and depend on ride-share to get around. It’s the wrong move for San Francisco.”\u003c/p>\n\u003cp>“This TNC tax hits people who most rely on our platform to move and work,” a spokesperson for Uber said in an email. “It is irresponsible and blatantly ignores the city’s affordability crisis, less than a year after voters overwhelmingly approved business tax reform [Prop M] to encourage our city’s recovery.”\u003c/p>\n\u003cp>Waymo did not immediately respond to requests for comment.\u003c/p>\n\u003cp>Supervisor Matt Dorsey, who represents downtown and Mission Bay, where many major companies and ride-share services are based, did not co-sign the paperwork for the proposal.\u003c/p>\n\u003cp>But he said he’s open to a tax on ride-hailing companies to fund public transportation, and supported Prop L in 2024.\u003c/p>\n\u003cp>“My big worry as the downtown supervisor when we ask for funding for our transit service and Muni, in particular, it needs to be a tax that’s fair, reasonable and sufficient to solve the problem,” Dorsey said. “I would like for everybody to get on the same page. Public transit is something that we can’t afford to lose.”\u003c/p>\n\u003cp>\u003c/p>\n\u003c/div>\u003c/p>",
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"content": "\u003cp>Hundreds of thousands of ride-hailing app drivers gained a path to \u003ca href=\"https://www.kqed.org/news/12034860/california-bill-would-allow-uber-lyft-drivers-bargain-collectively\">negotiate a first union contract\u003c/a> with Uber and Lyft, even as they remain classified as independent contractors, under legislation signed Friday by Gov. Gavin Newsom.\u003cstrong> \u003c/strong>\u003c/p>\n\u003cp>The law was hailed as a milestone for app-based drivers in their yearslong battle to expand workplace rights, though critics of the measure said drivers will face serious hurdles to convince the tech giants to raise their pay and benefits.\u003c/p>\n\u003cp>“We are now empowered to affect the conditions and the wages of the drivers,” said Joseph Augusto, who has driven for Uber and Lyft in the Bay Area for more than 10 years. “We are looking forward to building a union and trying to negotiate with Uber and Lyft. This is a step forward. It’s going to take a lot more work, but this is the beginning.”\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>Ride-hail drivers in California have \u003ca href=\"https://www.kqed.org/news/11928844/rideshare-drivers-rally-for-rights-announce-new-statewide-union\">formed unions\u003c/a> in the past, but the app-based transportation giants weren’t required to bargain with them. AB 1340 by Assemblymembers Buffy Wicks, D-Oakland, and Marc Berman, D-Menlo Park, will change that starting Jan. 1 for drivers’ unions certified by a state board.\u003c/p>\n\u003cp>Uber, Lyft and other gig companies \u003ca href=\"https://www.kqed.org/news/12034860/california-bill-would-allow-uber-lyft-drivers-bargain-collectively\">successfully fought\u003c/a> to classify drivers as independent contractors in a 2020 California ballot measure. Under federal law, most private sector employees have the right to collectively bargain and receive benefits such as minimum wage and overtime; independent contractors typically do not.\u003c/p>\n\u003cfigure id=\"attachment_12033653\" class=\"wp-caption aligncenter\" style=\"max-width: 2000px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-12033653\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2025/03/IMG_1196-scaled-e1759530132238.jpg\" alt=\"\" width=\"2000\" height=\"1500\">\u003cfigcaption class=\"wp-caption-text\">Uber’s headquarters in San Francisco’s Mission Bay neighborhood on Oct. 12, 2022. \u003ccite>(Farida Jhabvala Romero/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>The new legislation requires app-based transportation companies and certified unions to negotiate in good faith over issues such as driver deactivations, paid leave and earnings. It also protects gig drivers from retaliation and offers the opportunity to reach an industry-wide contract.\u003c/p>\n\u003cp>The Public Employment Relations Board is set to enforce the provisions, including by overseeing union elections and bargaining, mediating disputes and determining whether any unfair labor practices occurred.\u003c/p>\n\u003cp>Uber and Lyft initially opposed the measure, arguing that it would increase the price of rides and exclude most drivers who don’t work a significant number of hours per week. But the companies changed their stance in August, \u003ca href=\"https://www.gov.ca.gov/2025/08/29/governor-newsom-pro-tem-mcguire-speaker-rivas-announce-support-for-legislation-empowering-gig-workers-improving-rideshare-affordability/\">in exchange\u003c/a> for significant reductions in insurance requirements through another bill, SB 371.\u003c/p>\n\u003cp>Opponents to that bill argued that the concessions, which are expected to save the companies money by lowering the underinsured motorist coverage from $1 million to $60,000 per person, will shift the financial burden from serious accidents to vulnerable Californians and hospitals. The companies said the move will help them reduce the price of ride-hail services.[aside postID=news_12033648 hero='https://cdn.kqed.org/wp-content/uploads/sites/10/2025/03/240625-UBERSANJOSE-JG-1-1-1020x680.jpg']“AB 1340 and SB 371 together represent a compromise that lowers costs for riders while creating stronger voices for drivers — demonstrating how industry, labor, and lawmakers can work together to deliver real solutions,” Ramona Prieto, Uber’s head of public policy for California, said in a statement.\u003c/p>\n\u003cp>According to Uber and Lyft, drivers enjoy the flexibility to set their own schedules and an employee model threatens the companies’ survival. The 2020 ballot measure backed by the companies, Proposition 22, promised drivers would receive at least 120% of the local minimum wage, a health care stipend of up to $426 for those working a certain number of hours and accident insurance.\u003c/p>\n\u003cp>But many ride-hail drivers say they have seen their real wages slip since, while the companies became profitable. Researchers at the UC Berkeley Labor Center \u003ca href=\"https://laborcenter.berkeley.edu/gig-passenger-and-delivery-driver-pay-in-five-metro-areas/\">found\u003c/a> last year that California passenger drivers made less than the state’s minimum wage, after car expenses and excluding tips.\u003c/p>\n\u003cp>AB 1340 restricts the organizations that may be certified to represent drivers to those that have experience negotiating a labor contract or that are affiliated with such a union. Supporters of the measure said the requirements will ensure legitimate organizations have the resources to represent what could become a very large statewide bargaining bloc.\u003c/p>\n\u003cp>Rideshare Drivers United, an organization with more than 20,000 California gig driver members, said the conditions could unduly benefit the Service Employees International Union, a major labor group that sponsored AB 1340 and backed a similar initiative in Massachusetts that voters approved last fall. Jason Munderloh, who began driving for Uber and Lyft in San Francisco 11 years ago, said he is also concerned that the new law \u003ca href=\"https://www.caaa.org/?pg=latestnews&blAction=showEntry&blogEntry=130853#:~:text=AB%201340%20offers%20a%20state,the%20traditional%20workers'%20compensation%20system.\">does not guarantee\u003c/a> the right to strike, a key to union leverage.\u003c/p>\n\u003cfigure id=\"attachment_11986560\" class=\"wp-caption aligncenter\" style=\"max-width: 1920px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-11986560\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/05/001_SanFrancisco_GigWorkersProtest_11032021_qut.jpg\" alt=\"A car with a Lyft sign drives with a black flag in the window.\" width=\"1920\" height=\"1280\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/05/001_SanFrancisco_GigWorkersProtest_11032021_qut.jpg 1920w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/05/001_SanFrancisco_GigWorkersProtest_11032021_qut-800x533.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/05/001_SanFrancisco_GigWorkersProtest_11032021_qut-1020x680.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/05/001_SanFrancisco_GigWorkersProtest_11032021_qut-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/05/001_SanFrancisco_GigWorkersProtest_11032021_qut-1536x1024.jpg 1536w\" sizes=\"auto, (max-width: 1920px) 100vw, 1920px\">\u003cfigcaption class=\"wp-caption-text\">Rideshare drivers form a row to block the street in front of the DoorDash headquarters in San Francisco on Nov. 3, 2021, during a protest for fair wages and employee protections. \u003ccite>(Beth LaBerge/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>“It’s a missed opportunity,” said Munderloh, who volunteers with Rideshare Drivers United. “We’re going to be in what might be a very long fight. We need to start on the right foot. And we need a very strong [law]. And I just don’t see that that’s the way AB 1340 is.”\u003c/p>\n\u003cp>Munderloh pointed to the difficulties unionized employees covered by the National Labor Relations Act have had in securing a first contract with Starbucks, Amazon and other large corporations. Employer \u003ca href=\"https://www.ilr.cornell.edu/news/research/bronfenbrenner-outlines-employer-anti-union-efforts-congress\">opposition\u003c/a> and the lack of financial penalties for unfair labor practices under that federal law make it difficult for some employees to ever win a first union contract, according to researchers.\u003c/p>\n\u003cp>California’s new legislation allows ride-hail drivers to engage in protected union activities, such as a work stoppage. But the state can’t guarantee the right to strike because of federal antitrust laws, according to Scott Kronland, an attorney with Altshuler Berzon in San Francisco who advised the SEIU on AB 1340.[aside postID=news_12056553 hero='https://cdn.kqed.org/wp-content/uploads/sites/10/2025/09/LegalAide.jpg']It’s yet to be seen whether federal courts could see striking ride-hail drivers as businesses banding together to illegally reduce competition, since they are not employees.\u003c/p>\n\u003cp>“It’s a very complicated bill, but there are significant legal constraints,” said Kronland, who argued a challenge to Proposition 22 on behalf of several drivers and unions. “And basically, this is the best you are going to do with Prop 22 and federal antitrust laws until you can change them.”\u003c/p>\n\u003cp>AB 1340 became possible after the California Court of Appeals in that case struck down language that prevented state lawmakers from authorizing collective bargaining rights.\u003c/p>\n\u003cp>David Weil, a professor of social policy and economics at Brandeis University, said he was skeptical that a deal embraced by the tech giants would significantly benefit drivers in the long run, even if workers can get to the bargaining table. Uber and Lyft control their drivers’ ever-changing rates, what rides they have access to and how much riders will pay by crunching data through an algorithm that works to maximize the companies’ profits, he added.\u003c/p>\n\u003cp>“Uber and Lyft, because of their vast control of information and algorithms, are always in a position where they have the advantage. … To borrow a gambling term, it’s always going to be the house that always wins relative to the drivers,” said Weil, who led the U.S. Department of Labor’s Wage and Hour Division during the Obama administration. “They’re not going to surrender their ability to set prices and their ability to hold all the cards.”\u003c/p>\n\u003cp>This comes as Uber and Lyft continue to \u003ca href=\"https://www.kqed.org/news/12033648/uber-lyft-withheld-billions-in-pay-california-alleges-settlement-talks-are-underway\">negotiate a settlement\u003c/a> with California, as well as the cities of San Francisco, Los Angeles and San Diego, which sued the companies over the alleged withholding of wages for thousands of drivers during a period of time before Proposition 22 passed.\u003c/p>\n\u003cp>Drivers like Munderloh are demanding that the state and cities get an agreement that recoups billions of dollars in back wages and benefits, as well as raises driver pay going forward.\u003c/p>\n\u003cp>“The best way for drivers to improve what we’re being paid is actually the wage theft lawsuit that’s going on,” he said. “And the union struggle that we’re having here with AB 1340 is a longer-term issue.”\u003c/p>\n\u003cp>[ad floatright]\u003c/p>\n",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003cp>Hundreds of thousands of ride-hailing app drivers gained a path to \u003ca href=\"https://www.kqed.org/news/12034860/california-bill-would-allow-uber-lyft-drivers-bargain-collectively\">negotiate a first union contract\u003c/a> with Uber and Lyft, even as they remain classified as independent contractors, under legislation signed Friday by Gov. Gavin Newsom.\u003cstrong> \u003c/strong>\u003c/p>\n\u003cp>The law was hailed as a milestone for app-based drivers in their yearslong battle to expand workplace rights, though critics of the measure said drivers will face serious hurdles to convince the tech giants to raise their pay and benefits.\u003c/p>\n\u003cp>“We are now empowered to affect the conditions and the wages of the drivers,” said Joseph Augusto, who has driven for Uber and Lyft in the Bay Area for more than 10 years. “We are looking forward to building a union and trying to negotiate with Uber and Lyft. This is a step forward. It’s going to take a lot more work, but this is the beginning.”\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>Ride-hail drivers in California have \u003ca href=\"https://www.kqed.org/news/11928844/rideshare-drivers-rally-for-rights-announce-new-statewide-union\">formed unions\u003c/a> in the past, but the app-based transportation giants weren’t required to bargain with them. AB 1340 by Assemblymembers Buffy Wicks, D-Oakland, and Marc Berman, D-Menlo Park, will change that starting Jan. 1 for drivers’ unions certified by a state board.\u003c/p>\n\u003cp>Uber, Lyft and other gig companies \u003ca href=\"https://www.kqed.org/news/12034860/california-bill-would-allow-uber-lyft-drivers-bargain-collectively\">successfully fought\u003c/a> to classify drivers as independent contractors in a 2020 California ballot measure. Under federal law, most private sector employees have the right to collectively bargain and receive benefits such as minimum wage and overtime; independent contractors typically do not.\u003c/p>\n\u003cfigure id=\"attachment_12033653\" class=\"wp-caption aligncenter\" style=\"max-width: 2000px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-12033653\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2025/03/IMG_1196-scaled-e1759530132238.jpg\" alt=\"\" width=\"2000\" height=\"1500\">\u003cfigcaption class=\"wp-caption-text\">Uber’s headquarters in San Francisco’s Mission Bay neighborhood on Oct. 12, 2022. \u003ccite>(Farida Jhabvala Romero/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>The new legislation requires app-based transportation companies and certified unions to negotiate in good faith over issues such as driver deactivations, paid leave and earnings. It also protects gig drivers from retaliation and offers the opportunity to reach an industry-wide contract.\u003c/p>\n\u003cp>The Public Employment Relations Board is set to enforce the provisions, including by overseeing union elections and bargaining, mediating disputes and determining whether any unfair labor practices occurred.\u003c/p>\n\u003cp>Uber and Lyft initially opposed the measure, arguing that it would increase the price of rides and exclude most drivers who don’t work a significant number of hours per week. But the companies changed their stance in August, \u003ca href=\"https://www.gov.ca.gov/2025/08/29/governor-newsom-pro-tem-mcguire-speaker-rivas-announce-support-for-legislation-empowering-gig-workers-improving-rideshare-affordability/\">in exchange\u003c/a> for significant reductions in insurance requirements through another bill, SB 371.\u003c/p>\n\u003cp>Opponents to that bill argued that the concessions, which are expected to save the companies money by lowering the underinsured motorist coverage from $1 million to $60,000 per person, will shift the financial burden from serious accidents to vulnerable Californians and hospitals. The companies said the move will help them reduce the price of ride-hail services.\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>“AB 1340 and SB 371 together represent a compromise that lowers costs for riders while creating stronger voices for drivers — demonstrating how industry, labor, and lawmakers can work together to deliver real solutions,” Ramona Prieto, Uber’s head of public policy for California, said in a statement.\u003c/p>\n\u003cp>According to Uber and Lyft, drivers enjoy the flexibility to set their own schedules and an employee model threatens the companies’ survival. The 2020 ballot measure backed by the companies, Proposition 22, promised drivers would receive at least 120% of the local minimum wage, a health care stipend of up to $426 for those working a certain number of hours and accident insurance.\u003c/p>\n\u003cp>But many ride-hail drivers say they have seen their real wages slip since, while the companies became profitable. Researchers at the UC Berkeley Labor Center \u003ca href=\"https://laborcenter.berkeley.edu/gig-passenger-and-delivery-driver-pay-in-five-metro-areas/\">found\u003c/a> last year that California passenger drivers made less than the state’s minimum wage, after car expenses and excluding tips.\u003c/p>\n\u003cp>AB 1340 restricts the organizations that may be certified to represent drivers to those that have experience negotiating a labor contract or that are affiliated with such a union. Supporters of the measure said the requirements will ensure legitimate organizations have the resources to represent what could become a very large statewide bargaining bloc.\u003c/p>\n\u003cp>Rideshare Drivers United, an organization with more than 20,000 California gig driver members, said the conditions could unduly benefit the Service Employees International Union, a major labor group that sponsored AB 1340 and backed a similar initiative in Massachusetts that voters approved last fall. Jason Munderloh, who began driving for Uber and Lyft in San Francisco 11 years ago, said he is also concerned that the new law \u003ca href=\"https://www.caaa.org/?pg=latestnews&blAction=showEntry&blogEntry=130853#:~:text=AB%201340%20offers%20a%20state,the%20traditional%20workers'%20compensation%20system.\">does not guarantee\u003c/a> the right to strike, a key to union leverage.\u003c/p>\n\u003cfigure id=\"attachment_11986560\" class=\"wp-caption aligncenter\" style=\"max-width: 1920px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-11986560\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/05/001_SanFrancisco_GigWorkersProtest_11032021_qut.jpg\" alt=\"A car with a Lyft sign drives with a black flag in the window.\" width=\"1920\" height=\"1280\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/05/001_SanFrancisco_GigWorkersProtest_11032021_qut.jpg 1920w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/05/001_SanFrancisco_GigWorkersProtest_11032021_qut-800x533.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/05/001_SanFrancisco_GigWorkersProtest_11032021_qut-1020x680.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/05/001_SanFrancisco_GigWorkersProtest_11032021_qut-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/05/001_SanFrancisco_GigWorkersProtest_11032021_qut-1536x1024.jpg 1536w\" sizes=\"auto, (max-width: 1920px) 100vw, 1920px\">\u003cfigcaption class=\"wp-caption-text\">Rideshare drivers form a row to block the street in front of the DoorDash headquarters in San Francisco on Nov. 3, 2021, during a protest for fair wages and employee protections. \u003ccite>(Beth LaBerge/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>“It’s a missed opportunity,” said Munderloh, who volunteers with Rideshare Drivers United. “We’re going to be in what might be a very long fight. We need to start on the right foot. And we need a very strong [law]. And I just don’t see that that’s the way AB 1340 is.”\u003c/p>\n\u003cp>Munderloh pointed to the difficulties unionized employees covered by the National Labor Relations Act have had in securing a first contract with Starbucks, Amazon and other large corporations. Employer \u003ca href=\"https://www.ilr.cornell.edu/news/research/bronfenbrenner-outlines-employer-anti-union-efforts-congress\">opposition\u003c/a> and the lack of financial penalties for unfair labor practices under that federal law make it difficult for some employees to ever win a first union contract, according to researchers.\u003c/p>\n\u003cp>California’s new legislation allows ride-hail drivers to engage in protected union activities, such as a work stoppage. But the state can’t guarantee the right to strike because of federal antitrust laws, according to Scott Kronland, an attorney with Altshuler Berzon in San Francisco who advised the SEIU on AB 1340.\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>It’s yet to be seen whether federal courts could see striking ride-hail drivers as businesses banding together to illegally reduce competition, since they are not employees.\u003c/p>\n\u003cp>“It’s a very complicated bill, but there are significant legal constraints,” said Kronland, who argued a challenge to Proposition 22 on behalf of several drivers and unions. “And basically, this is the best you are going to do with Prop 22 and federal antitrust laws until you can change them.”\u003c/p>\n\u003cp>AB 1340 became possible after the California Court of Appeals in that case struck down language that prevented state lawmakers from authorizing collective bargaining rights.\u003c/p>\n\u003cp>David Weil, a professor of social policy and economics at Brandeis University, said he was skeptical that a deal embraced by the tech giants would significantly benefit drivers in the long run, even if workers can get to the bargaining table. Uber and Lyft control their drivers’ ever-changing rates, what rides they have access to and how much riders will pay by crunching data through an algorithm that works to maximize the companies’ profits, he added.\u003c/p>\n\u003cp>“Uber and Lyft, because of their vast control of information and algorithms, are always in a position where they have the advantage. … To borrow a gambling term, it’s always going to be the house that always wins relative to the drivers,” said Weil, who led the U.S. Department of Labor’s Wage and Hour Division during the Obama administration. “They’re not going to surrender their ability to set prices and their ability to hold all the cards.”\u003c/p>\n\u003cp>This comes as Uber and Lyft continue to \u003ca href=\"https://www.kqed.org/news/12033648/uber-lyft-withheld-billions-in-pay-california-alleges-settlement-talks-are-underway\">negotiate a settlement\u003c/a> with California, as well as the cities of San Francisco, Los Angeles and San Diego, which sued the companies over the alleged withholding of wages for thousands of drivers during a period of time before Proposition 22 passed.\u003c/p>\n\u003cp>Drivers like Munderloh are demanding that the state and cities get an agreement that recoups billions of dollars in back wages and benefits, as well as raises driver pay going forward.\u003c/p>\n\u003cp>“The best way for drivers to improve what we’re being paid is actually the wage theft lawsuit that’s going on,” he said. “And the union struggle that we’re having here with AB 1340 is a longer-term issue.”\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cp>\u003cem>Updated 1:57 p.m. Friday\u003c/em>\u003c/p>\n\u003cp>Five years after safe street advocates celebrated San Francisco’s decision to \u003ca href=\"https://www.kqed.org/news/11797529/san-franciscos-market-street-is-going-car-free-next-week-7-things-you-need-to-know\">make Market Street \u003c/a>car-free, cars — both with and \u003ca href=\"https://www.kqed.org/news/12035348/mayor-lurie-allows-waymo-on-sfs-car-free-market-street\">without drivers\u003c/a> — will begin rolling down the thoroughfare on Tuesday.\u003c/p>\n\u003cp>Mayor Daniel Lurie said Wednesday that his office was granting Waymo autonomous vehicles and some Uber and Lyft cars access to the two-mile vehicle-free span of the street as part of his push to revitalize downtown. But Robin Pam, the executive director of Streets for All San Francisco, says the limited, and likely expensive, vehicle expansion will only harm the corridor’s long-desired transformation.\u003c/p>\n\u003cp>“Putting cars back on Market is really a big step backwards, and it’s going to prevent us from making progress toward that vision of a more vibrant people-first space that really will attract more people to come downtown and want to be there,” she told KQED.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>The pilot phase that the San Francisco Municipal Transportation Agency starts Tuesday will test the impact of Waymo and some Uber and Lyft operations on Market Street outside peak commute hours.\u003c/p>\n\u003cp>The move comes after Lurie gave Waymo permission to begin mapping the street for an expansion in April, which was met with opposition from other ride-hail companies. Since Waymos, as well as Uber and Lyft’s black cars, are categorized as commercial vehicles, they’ve not been legally obligated to stay off the car-free section of Market Street under SFMTA traffic regulations. Waymo confirmed in April that it had voluntarily refrained from operating there.\u003c/p>\n\u003cfigure id=\"attachment_12053385\" class=\"wp-caption aligncenter\" style=\"max-width: 2000px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-12053385\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2025/08/IMG_0527_qed.jpg\" alt=\"\" width=\"2000\" height=\"1333\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2025/08/IMG_0527_qed.jpg 2000w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/08/IMG_0527_qed-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/08/IMG_0527_qed-1536x1024.jpg 1536w\" sizes=\"auto, (max-width: 2000px) 100vw, 2000px\">\u003cfigcaption class=\"wp-caption-text\">An Uber and Lyft driver drops off a customer in San Francisco’s downtown neighborhood on Aug. 31, 2015. \u003ccite>(Ericka Cruz Guevarra/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Between 9 a.m. and 4 p.m., and overnight from 7 p.m. to 6 a.m., Waymo can drop off and pick up passengers at seven locations along Market Street, between 5th and 8th streets. They’ll be allowed to run on the two-mile strip between Van Ness Avenue and Steuart Street, where cars are barred, according to SFMTA Director Julie Kirschbaum.\u003c/p>\n\u003cp>Uber and Lyft black cars, the apps’ top-line rides that offer a more luxurious experience at a higher price tag, will be allowed to pick up passengers at those locations during the evening and night hours, from 7 p.m. to 6 a.m. Both apps require drivers to meet certain car standards: the cars have to be black, and Lyft prohibits vehicles older than 2018, while Uber requires them to be models made within the last five years.\u003c/p>\n\u003cp>The area where these vehicles will begin operating is a sector of Market Street that has been closed to cars since January 2020, following more than a decade of advocacy to remove cars from the busy downtown road.[aside postID=news_12035348 hero='https://cdn.kqed.org/wp-content/uploads/sites/10/2023/11/230921-TaxiDriver-10-BL-1020x680.jpg']In a statement, Lurie said, “The city will monitor Muni performance, traffic conditions, safety incidents, and Waymo, Uber Black, and Lyft Black’s performance through shared data and street traffic observations,” to decide how best to increase safe transportation through all modes in the future.\u003c/p>\n\u003cp>But Pam said data shows banning cars from the road has already benefited non-drivers. Since 2020, she said, SFMTA found that traffic collisions on the road \u003ca href=\"https://www.sfmta.com/sites/default/files/reports-and-documents/2023/05/san_francisco_collisions_report_2017_2022.pdf\">fell by 40%\u003c/a>.\u003c/p>\n\u003cp>“The people who are going to lose are the hundreds of thousands of people who take Muni, who walk and bike downtown every day, versus a couple dozen people traveling in these luxury vehicles,” she told KQED.\u003c/p>\n\u003cp>Those reliant on Muni to get downtown are already adjusting to \u003ca href=\"https://www.kqed.org/news/12021178/sf-muni-reducing-bus-light-rail-service-amid-fiscal-crisis-more-cuts-loom\">service cuts along Market\u003c/a> that went into effect in June. As the city agency struggles to recover from a plummet in ridership during the COVID-19 pandemic, it’s \u003ca href=\"https://www.kqed.org/news/12014573/sf-muni-dire-need-funding-without-cuts-could-be-devastating\">facing a dire financial crisis\u003c/a> that \u003ca href=\"https://www.kqed.org/news/12041824/bay-area-transit-faces-a-fiscal-crisis-newsoms-budget-plan-could-make-it-worse\">threatens to force even more cuts\u003c/a> in future years.\u003c/p>\n\u003cp>For the last two months, three lines that used to run all the way down to the Embarcadero from various city neighborhoods have begun turning back when they reach Market Street. Two other routes headed toward the Bay from the Inner Sunset and the northeast edge of Golden Gate Park were combined into a new Muni line, which also now ends when it hits the street. After feedback from residents, Muni is \u003ca href=\"https://www.sfmta.com/blog/supporting-trips-school-and-work-muni-service-changes-start-aug-30\">restoring two morning trips\u003c/a> on the 1X California Express and adding one trip on the 30X Marina Express into downtown on Aug. 30.\u003c/p>\n\u003cfigure id=\"attachment_11734349\" class=\"wp-caption aligncenter\" style=\"max-width: 1920px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-11734349\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2019/03/lyft-getty.jpg\" alt=\"An SUV in San Francisco displaying the Lyft logo in its back window.\" width=\"1920\" height=\"1280\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2019/03/lyft-getty.jpg 1920w, https://cdn.kqed.org/wp-content/uploads/sites/10/2019/03/lyft-getty-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2019/03/lyft-getty-800x533.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2019/03/lyft-getty-1020x680.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2019/03/lyft-getty-1200x800.jpg 1200w\" sizes=\"auto, (max-width: 1920px) 100vw, 1920px\">\u003cfigcaption class=\"wp-caption-text\">An SUV in San Francisco displays the Lyft logo. \u003ccite>(Justin Sullivan/Getty Images)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>“At a time when Muni is facing an enormous fiscal crisis and we’re already cutting service, to make Market more congested with vehicles and slow down Muni and make it less efficient is really not the direction the city needs to go in,” Pam said.\u003c/p>\n\u003cp>While Market Street has wide sidewalks designated for foot traffic, Marta Lindsey, WalkSF’s communications director, said increased vehicle traffic will increase collision risks for pedestrians, especially in crosswalks.\u003c/p>\n\u003cp>“When you’re crossing the street one of the biggest risks is turning vehicles,” she said. “Bringing back vehicles is less of a risk to someone walking on the sidewalk, but it’s bringing back all this intersection chaos and maneuvers that really put pedestrians at risk.”[aside postID=news_12050242 hero='https://cdn.kqed.org/wp-content/uploads/sites/10/2025/08/250805-MARINEBIKES-03-KQED-1.jpg']She said people entering and exiting buses will also have to navigate more cars on the road, and even walking on the sidewalk could become more risky if more bikers migrate off the street.\u003c/p>\n\u003cp>While cycling groups have done copious work to ensure bicyclists don’t use pedestrian-only sidewalks, Christopher White, who heads the San Francisco Bicycle Coalition, said it’s much more difficult when there aren’t designated spaces for people on bikes.\u003c/p>\n\u003cp>East of 8th Street, which accounts for much of the area that’s been car-free, there aren’t separate biking lanes, he said.\u003c/p>\n\u003cp>“We have invested an enormous amount of resources trying to teach people that [the sidewalk] is not where bikes and scooters belong, but it is also the rational choice when people don’t have protected infrastructure,” he said. “More cars will cause people to feel less safe on their bikes and scooters. That is going to drive them onto the sidewalk, and that is going to put in danger people who are walking, particularly seniors, people with disabilities, and children.”\u003c/p>\n\u003cp>The current expansion is fairly limited and doesn’t actually change any city law. Both banning the commercial vehicles outright or allowing all private vehicles back onto the road would need to go through more rigorous channels, but many of the advocates who’ve formed the Keep Market Street Moving coalition to oppose the expansion fear it will only be a matter of time before the road is hopping with cars.\u003c/p>\n\u003cp>Multiple advocates told KQED they already see private vehicles on prohibited parts of the street fairly often, and with some Uber and Lyft operators in standard cars allowed to operate, enforcement of the rules will only become more difficult.\u003c/p>\n\u003cp>“I think people have forgotten how chaotic and dangerous Market was,” Lindsey said. “We cannot go back to how dangerous and chaotic it was, and these changes are opening up the door to going back.”\u003c/p>\n\u003cp>[ad floatright]\u003c/p>\n",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003cp>\u003cem>Updated 1:57 p.m. Friday\u003c/em>\u003c/p>\n\u003cp>Five years after safe street advocates celebrated San Francisco’s decision to \u003ca href=\"https://www.kqed.org/news/11797529/san-franciscos-market-street-is-going-car-free-next-week-7-things-you-need-to-know\">make Market Street \u003c/a>car-free, cars — both with and \u003ca href=\"https://www.kqed.org/news/12035348/mayor-lurie-allows-waymo-on-sfs-car-free-market-street\">without drivers\u003c/a> — will begin rolling down the thoroughfare on Tuesday.\u003c/p>\n\u003cp>Mayor Daniel Lurie said Wednesday that his office was granting Waymo autonomous vehicles and some Uber and Lyft cars access to the two-mile vehicle-free span of the street as part of his push to revitalize downtown. But Robin Pam, the executive director of Streets for All San Francisco, says the limited, and likely expensive, vehicle expansion will only harm the corridor’s long-desired transformation.\u003c/p>\n\u003cp>“Putting cars back on Market is really a big step backwards, and it’s going to prevent us from making progress toward that vision of a more vibrant people-first space that really will attract more people to come downtown and want to be there,” she told KQED.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>The pilot phase that the San Francisco Municipal Transportation Agency starts Tuesday will test the impact of Waymo and some Uber and Lyft operations on Market Street outside peak commute hours.\u003c/p>\n\u003cp>The move comes after Lurie gave Waymo permission to begin mapping the street for an expansion in April, which was met with opposition from other ride-hail companies. Since Waymos, as well as Uber and Lyft’s black cars, are categorized as commercial vehicles, they’ve not been legally obligated to stay off the car-free section of Market Street under SFMTA traffic regulations. Waymo confirmed in April that it had voluntarily refrained from operating there.\u003c/p>\n\u003cfigure id=\"attachment_12053385\" class=\"wp-caption aligncenter\" style=\"max-width: 2000px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-12053385\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2025/08/IMG_0527_qed.jpg\" alt=\"\" width=\"2000\" height=\"1333\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2025/08/IMG_0527_qed.jpg 2000w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/08/IMG_0527_qed-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/08/IMG_0527_qed-1536x1024.jpg 1536w\" sizes=\"auto, (max-width: 2000px) 100vw, 2000px\">\u003cfigcaption class=\"wp-caption-text\">An Uber and Lyft driver drops off a customer in San Francisco’s downtown neighborhood on Aug. 31, 2015. \u003ccite>(Ericka Cruz Guevarra/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Between 9 a.m. and 4 p.m., and overnight from 7 p.m. to 6 a.m., Waymo can drop off and pick up passengers at seven locations along Market Street, between 5th and 8th streets. They’ll be allowed to run on the two-mile strip between Van Ness Avenue and Steuart Street, where cars are barred, according to SFMTA Director Julie Kirschbaum.\u003c/p>\n\u003cp>Uber and Lyft black cars, the apps’ top-line rides that offer a more luxurious experience at a higher price tag, will be allowed to pick up passengers at those locations during the evening and night hours, from 7 p.m. to 6 a.m. Both apps require drivers to meet certain car standards: the cars have to be black, and Lyft prohibits vehicles older than 2018, while Uber requires them to be models made within the last five years.\u003c/p>\n\u003cp>The area where these vehicles will begin operating is a sector of Market Street that has been closed to cars since January 2020, following more than a decade of advocacy to remove cars from the busy downtown road.\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>In a statement, Lurie said, “The city will monitor Muni performance, traffic conditions, safety incidents, and Waymo, Uber Black, and Lyft Black’s performance through shared data and street traffic observations,” to decide how best to increase safe transportation through all modes in the future.\u003c/p>\n\u003cp>But Pam said data shows banning cars from the road has already benefited non-drivers. Since 2020, she said, SFMTA found that traffic collisions on the road \u003ca href=\"https://www.sfmta.com/sites/default/files/reports-and-documents/2023/05/san_francisco_collisions_report_2017_2022.pdf\">fell by 40%\u003c/a>.\u003c/p>\n\u003cp>“The people who are going to lose are the hundreds of thousands of people who take Muni, who walk and bike downtown every day, versus a couple dozen people traveling in these luxury vehicles,” she told KQED.\u003c/p>\n\u003cp>Those reliant on Muni to get downtown are already adjusting to \u003ca href=\"https://www.kqed.org/news/12021178/sf-muni-reducing-bus-light-rail-service-amid-fiscal-crisis-more-cuts-loom\">service cuts along Market\u003c/a> that went into effect in June. As the city agency struggles to recover from a plummet in ridership during the COVID-19 pandemic, it’s \u003ca href=\"https://www.kqed.org/news/12014573/sf-muni-dire-need-funding-without-cuts-could-be-devastating\">facing a dire financial crisis\u003c/a> that \u003ca href=\"https://www.kqed.org/news/12041824/bay-area-transit-faces-a-fiscal-crisis-newsoms-budget-plan-could-make-it-worse\">threatens to force even more cuts\u003c/a> in future years.\u003c/p>\n\u003cp>For the last two months, three lines that used to run all the way down to the Embarcadero from various city neighborhoods have begun turning back when they reach Market Street. Two other routes headed toward the Bay from the Inner Sunset and the northeast edge of Golden Gate Park were combined into a new Muni line, which also now ends when it hits the street. After feedback from residents, Muni is \u003ca href=\"https://www.sfmta.com/blog/supporting-trips-school-and-work-muni-service-changes-start-aug-30\">restoring two morning trips\u003c/a> on the 1X California Express and adding one trip on the 30X Marina Express into downtown on Aug. 30.\u003c/p>\n\u003cfigure id=\"attachment_11734349\" class=\"wp-caption aligncenter\" style=\"max-width: 1920px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-11734349\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2019/03/lyft-getty.jpg\" alt=\"An SUV in San Francisco displaying the Lyft logo in its back window.\" width=\"1920\" height=\"1280\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2019/03/lyft-getty.jpg 1920w, https://cdn.kqed.org/wp-content/uploads/sites/10/2019/03/lyft-getty-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2019/03/lyft-getty-800x533.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2019/03/lyft-getty-1020x680.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2019/03/lyft-getty-1200x800.jpg 1200w\" sizes=\"auto, (max-width: 1920px) 100vw, 1920px\">\u003cfigcaption class=\"wp-caption-text\">An SUV in San Francisco displays the Lyft logo. \u003ccite>(Justin Sullivan/Getty Images)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>“At a time when Muni is facing an enormous fiscal crisis and we’re already cutting service, to make Market more congested with vehicles and slow down Muni and make it less efficient is really not the direction the city needs to go in,” Pam said.\u003c/p>\n\u003cp>While Market Street has wide sidewalks designated for foot traffic, Marta Lindsey, WalkSF’s communications director, said increased vehicle traffic will increase collision risks for pedestrians, especially in crosswalks.\u003c/p>\n\u003cp>“When you’re crossing the street one of the biggest risks is turning vehicles,” she said. “Bringing back vehicles is less of a risk to someone walking on the sidewalk, but it’s bringing back all this intersection chaos and maneuvers that really put pedestrians at risk.”\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>She said people entering and exiting buses will also have to navigate more cars on the road, and even walking on the sidewalk could become more risky if more bikers migrate off the street.\u003c/p>\n\u003cp>While cycling groups have done copious work to ensure bicyclists don’t use pedestrian-only sidewalks, Christopher White, who heads the San Francisco Bicycle Coalition, said it’s much more difficult when there aren’t designated spaces for people on bikes.\u003c/p>\n\u003cp>East of 8th Street, which accounts for much of the area that’s been car-free, there aren’t separate biking lanes, he said.\u003c/p>\n\u003cp>“We have invested an enormous amount of resources trying to teach people that [the sidewalk] is not where bikes and scooters belong, but it is also the rational choice when people don’t have protected infrastructure,” he said. “More cars will cause people to feel less safe on their bikes and scooters. That is going to drive them onto the sidewalk, and that is going to put in danger people who are walking, particularly seniors, people with disabilities, and children.”\u003c/p>\n\u003cp>The current expansion is fairly limited and doesn’t actually change any city law. Both banning the commercial vehicles outright or allowing all private vehicles back onto the road would need to go through more rigorous channels, but many of the advocates who’ve formed the Keep Market Street Moving coalition to oppose the expansion fear it will only be a matter of time before the road is hopping with cars.\u003c/p>\n\u003cp>Multiple advocates told KQED they already see private vehicles on prohibited parts of the street fairly often, and with some Uber and Lyft operators in standard cars allowed to operate, enforcement of the rules will only become more difficult.\u003c/p>\n\u003cp>“I think people have forgotten how chaotic and dangerous Market was,” Lindsey said. “We cannot go back to how dangerous and chaotic it was, and these changes are opening up the door to going back.”\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cp>\u003cem>Updated 2:23 p.m. Tuesday\u003c/em>\u003c/p>\n\u003cp>California lawmakers are introducing a bill that would allow drivers for ride-hailing apps to bargain collectively over pay and working conditions, even as they remain classified as independent contractors for companies such as \u003ca href=\"https://www.kqed.org/news/12033648/uber-lyft-withheld-billions-in-pay-california-alleges-settlement-talks-are-underway\">Uber and Lyft\u003c/a>.\u003c/p>\n\u003cp>Under the measure, announced Tuesday at a rally with dozens of drivers near the state Capitol, unions that are certified by the state would be able to negotiate with app-based transportation companies on behalf of drivers to resolve disputes and improve working conditions. The California Labor and Workforce Development Agency would enforce the provisions, though details on the process have not yet been worked out, according to a draft of the bill reviewed by KQED.\u003c/p>\n\u003cp>Independent contractors are not entitled to employee benefits such as minimum wage and overtime. They are also excluded from the National Labor Relations Act, a federal law that grants most private-sector employees the right to collectively bargain.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>The proposed legislation, AB 1340, would not cover delivery drivers.\u003c/p>\n\u003cp>Assemblymembers Buffy Wicks (D-Oakland) and Marc Berman (D-Menlo Park), who are among several Democratic co-authors of the bill, spoke at Tuesday’s rally.\u003c/p>\n\u003cp>“We stand for the right of every worker to truly have a voice,” Wicks told the crowd of people holding signs that read “Gig Drivers Union Now.” “We’re here today to talk about respecting the voices of our rideshare drivers and offering you the choice to build power in your union. To build power for better wages, to build power for better working conditions, to build power for financial stability in your homes.”\u003c/p>\n\u003cfigure id=\"attachment_12033651\" class=\"wp-caption aligncenter\" style=\"max-width: 2000px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-12033651\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2025/03/240625-UBERSANJOSE-JG-1-1.jpg\" alt=\"\" width=\"2000\" height=\"1333\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2025/03/240625-UBERSANJOSE-JG-1-1.jpg 2000w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/03/240625-UBERSANJOSE-JG-1-1-800x533.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/03/240625-UBERSANJOSE-JG-1-1-1020x680.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/03/240625-UBERSANJOSE-JG-1-1-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/03/240625-UBERSANJOSE-JG-1-1-1536x1024.jpg 1536w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/03/240625-UBERSANJOSE-JG-1-1-1920x1280.jpg 1920w\" sizes=\"auto, (max-width: 2000px) 100vw, 2000px\">\u003cfigcaption class=\"wp-caption-text\">Uber drivers and advocates rally outside the company’s driver support center in South San José on June 25, 2024. \u003ccite>(Joseph Geha/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>The Service Employees International Union, which supports AB 1340, backed a similar initiative in Massachusetts that \u003ca href=\"https://www.reuters.com/business/autos-transportation/massachusetts-voters-allow-uber-lyft-drivers-unionize-2024-11-06/#:~:text=BOSTON%2C%20Nov%206%20(Reuters),based%20companies%20like%20Uber%20(UBER.\">voters approved\u003c/a> last fall.\u003c/p>\n\u003cp>In California, Uber, Lyft and other gig companies spent more than $200 million to back \u003ca href=\"https://www.kqed.org/news/12002988/some-gig-workers-say-they-are-seeing-little-of-prop-22-promises-and-lack-of-enforcement-from-state\">Proposition 22\u003c/a>, a 2020 ballot initiative that exempted them from having to classify their drivers as employees. Studies show employers often save money by hiring independent contractors, as they generally avoid paying for payroll taxes and employee benefits.\u003c/p>\n\u003cp>“Drivers overwhelmingly voted for and continue to support Prop. 22 because it is their preferred way to structure benefits and protections,” a Lyft spokesperson said in a statement. “And for years, we’ve been building upon this framework to roll out new products and features designed to improve the driver experience.”[aside postID=news_12034478 hero='https://cdn.kqed.org/wp-content/uploads/sites/10/2025/04/FederalEmployeeLayoffsGetty-1020x680.jpg']As part of Proposition 22, the gig companies promised that drivers would receive at least 120% of the local minimum wage while giving a ride or doing a delivery, a health care stipend of up to $426 for those that qualified, and accident insurance.\u003c/p>\n\u003cp>An Uber spokesperson said AB 1340, if implemented, would end up increasing the price of rides and suggested that most drivers’ voices may be left out of a union process because only a small proportion work a significant number of hours.\u003c/p>\n\u003cp>They pointed to \u003ca href=\"https://protectdriversandservices.com/wp-content/uploads/2025/01/BRG-Economic-Impact-Analysis_FINAL_1.21.25.pdf\" target=\"_blank\" rel=\"noopener noreferrer\">a report (PDF)\u003c/a> by the Berkeley Research Group, a consulting firm, that found only 7% of drivers for app-based ride and delivery platforms worked more than 20 hours per week. The research was commissioned by Protect App-Based Drivers & Services, a group that counts Uber and Lyft among its members.\u003c/p>\n\u003cp>“Californians are already feeling the squeeze — and this proposal would drive up rideshare costs even more while threatening the flexible jobs thousands depend on,” the Uber spokesperson said. “Drivers have been clear: they want to stay independent and keep the freedom to choose when and how they work, with access to meaningful benefits.”\u003c/p>\n\u003cp>However, at the Sacramento rally, several drivers said their payment for rides has dropped as Uber and Lyft keep a greater share of what customers pay. A \u003ca href=\"https://laborcenter.berkeley.edu/gig-passenger-and-delivery-driver-pay-in-five-metro-areas/\">report by the UC Berkeley Labor Center\u003c/a> last year found that ride-hail drivers in the San Francisco Bay and four other metro areas made less than minimum wage after taking into account expenses and wait times.\u003c/p>\n\u003cfigure id=\"attachment_11770515\" class=\"wp-caption aligncenter\" style=\"max-width: 1920px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-11770515\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2019/08/RS38759__M6A2447-qut.jpg\" alt=\"\" width=\"1920\" height=\"1457\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2019/08/RS38759__M6A2447-qut.jpg 1920w, https://cdn.kqed.org/wp-content/uploads/sites/10/2019/08/RS38759__M6A2447-qut-160x121.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2019/08/RS38759__M6A2447-qut-800x607.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2019/08/RS38759__M6A2447-qut-1020x774.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2019/08/RS38759__M6A2447-qut-1200x911.jpg 1200w\" sizes=\"auto, (max-width: 1920px) 100vw, 1920px\">\u003cfigcaption class=\"wp-caption-text\">Uber and Lyft drivers rallied at Uber headquarters in San Francisco in August 2019 before heading to Sacramento to push for legislation classifying them as employees. \u003ccite>(Sruti Mamidanna/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Nick Calabar Jr. of Stockton said that when he started driving for Uber and Lyft 16 years ago, the pay was decent, but now it’s a struggle to survive. During a ride last week that cost the customer $60, Lyft only paid him $14, he said.\u003c/p>\n\u003cp>“How is that fair? I do all the work, pay for the cost of my car payment each month, cost of charging my vehicle, and not to mention taking all the risks,” Calabar said. “Like thousands of rideshare drivers, working for Uber or Lyft isn’t just a side gig, it’s our job.”\u003c/p>\n\u003cp>The effort to carve a new path for ride-hail drivers to collectively bargain in California comes as attorneys for the state and the cities of San Francisco, Los Angeles and San Diego are meeting Tuesday for a closed-door \u003ca href=\"https://www.kqed.org/news/12033648/uber-lyft-withheld-billions-in-pay-california-alleges-settlement-talks-are-underway\">mediation session\u003c/a> with Lyft. Another is planned with Uber for next month.[aside postID=news_12033648 hero='https://cdn.kqed.org/wp-content/uploads/sites/10/2025/03/240625-UBERSANJOSE-JG-1-1-1020x680.jpg']The negotiations stem from yearslong lawsuits by the California labor commissioner’s office, as well as the attorney general’s office and the three cities. Those legal challenges allege Uber and Lyft owe potentially billions of dollars in wages and damages to drivers misclassified as independent contractors before Proposition 22 passed.\u003c/p>\n\u003cp>Last fall, Massachusetts \u003ca href=\"https://www.reuters.com/business/autos-transportation/massachusetts-voters-allow-uber-lyft-drivers-unionize-2024-11-06/#:~:text=BOSTON%2C%20Nov%206%20(Reuters),based%20companies%20like%20Uber%20(UBER.\">became the first state\u003c/a> to allow ride-hail drivers to unionize as independent contractors. The companies did not formally oppose that measure.\u003c/p>\n\u003cp>The Massachusetts Department of Labor is drafting regulations on the nuts and bolts of how the measure will work, including what happens if negotiations break down or what behavior constitutes as an unfair labor practice, said Maria O’Brien, who teaches employment law at Boston University.\u003c/p>\n\u003cp>“Even though Uber and Lyft did not formally oppose this, I would be very surprised if they simply rolled over once the regs are issued,” O’Brien said, pointing to companies’ track record of fighting policies they perceived as threats to their revenue and profits. “It wouldn’t surprise me, depending on what the regulations say, if you were to see lawsuits from Uber and Lyft.”\u003c/p>\n\u003cp>For the estimated 70,000 ride-hail drivers in that state, an option to engage in collective negotiations could build on gains achieved through a \u003ca href=\"https://www.mass.gov/info-details/uber-and-lyft-settlement-information-and-frequently-asked-questions\">settlement \u003c/a>between the Massachusetts attorney general’s office and Uber and Lyft last year, she said.\u003c/p>\n\u003cp>In that deal, the companies agreed to pay a combined total of $175 million, most of it in restitution to drivers who were underpaid. Uber and Lyft must also compensate drivers at least $33.48 per hour for time spent picking up and driving a customer, an amount that will be adjusted annually for inflation.\u003c/p>\n\u003cp>“I think that the drivers themselves view the settlement as a promising first step, but view the union as a mechanism by which they’re going to get increases going forward,” O’Brien said.\u003c/p>\n\u003cp>[ad floatright]\u003c/p>\n",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003cp>\u003cem>Updated 2:23 p.m. Tuesday\u003c/em>\u003c/p>\n\u003cp>California lawmakers are introducing a bill that would allow drivers for ride-hailing apps to bargain collectively over pay and working conditions, even as they remain classified as independent contractors for companies such as \u003ca href=\"https://www.kqed.org/news/12033648/uber-lyft-withheld-billions-in-pay-california-alleges-settlement-talks-are-underway\">Uber and Lyft\u003c/a>.\u003c/p>\n\u003cp>Under the measure, announced Tuesday at a rally with dozens of drivers near the state Capitol, unions that are certified by the state would be able to negotiate with app-based transportation companies on behalf of drivers to resolve disputes and improve working conditions. The California Labor and Workforce Development Agency would enforce the provisions, though details on the process have not yet been worked out, according to a draft of the bill reviewed by KQED.\u003c/p>\n\u003cp>Independent contractors are not entitled to employee benefits such as minimum wage and overtime. They are also excluded from the National Labor Relations Act, a federal law that grants most private-sector employees the right to collectively bargain.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>The proposed legislation, AB 1340, would not cover delivery drivers.\u003c/p>\n\u003cp>Assemblymembers Buffy Wicks (D-Oakland) and Marc Berman (D-Menlo Park), who are among several Democratic co-authors of the bill, spoke at Tuesday’s rally.\u003c/p>\n\u003cp>“We stand for the right of every worker to truly have a voice,” Wicks told the crowd of people holding signs that read “Gig Drivers Union Now.” “We’re here today to talk about respecting the voices of our rideshare drivers and offering you the choice to build power in your union. To build power for better wages, to build power for better working conditions, to build power for financial stability in your homes.”\u003c/p>\n\u003cfigure id=\"attachment_12033651\" class=\"wp-caption aligncenter\" style=\"max-width: 2000px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-12033651\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2025/03/240625-UBERSANJOSE-JG-1-1.jpg\" alt=\"\" width=\"2000\" height=\"1333\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2025/03/240625-UBERSANJOSE-JG-1-1.jpg 2000w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/03/240625-UBERSANJOSE-JG-1-1-800x533.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/03/240625-UBERSANJOSE-JG-1-1-1020x680.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/03/240625-UBERSANJOSE-JG-1-1-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/03/240625-UBERSANJOSE-JG-1-1-1536x1024.jpg 1536w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/03/240625-UBERSANJOSE-JG-1-1-1920x1280.jpg 1920w\" sizes=\"auto, (max-width: 2000px) 100vw, 2000px\">\u003cfigcaption class=\"wp-caption-text\">Uber drivers and advocates rally outside the company’s driver support center in South San José on June 25, 2024. \u003ccite>(Joseph Geha/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>The Service Employees International Union, which supports AB 1340, backed a similar initiative in Massachusetts that \u003ca href=\"https://www.reuters.com/business/autos-transportation/massachusetts-voters-allow-uber-lyft-drivers-unionize-2024-11-06/#:~:text=BOSTON%2C%20Nov%206%20(Reuters),based%20companies%20like%20Uber%20(UBER.\">voters approved\u003c/a> last fall.\u003c/p>\n\u003cp>In California, Uber, Lyft and other gig companies spent more than $200 million to back \u003ca href=\"https://www.kqed.org/news/12002988/some-gig-workers-say-they-are-seeing-little-of-prop-22-promises-and-lack-of-enforcement-from-state\">Proposition 22\u003c/a>, a 2020 ballot initiative that exempted them from having to classify their drivers as employees. Studies show employers often save money by hiring independent contractors, as they generally avoid paying for payroll taxes and employee benefits.\u003c/p>\n\u003cp>“Drivers overwhelmingly voted for and continue to support Prop. 22 because it is their preferred way to structure benefits and protections,” a Lyft spokesperson said in a statement. “And for years, we’ve been building upon this framework to roll out new products and features designed to improve the driver experience.”\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>As part of Proposition 22, the gig companies promised that drivers would receive at least 120% of the local minimum wage while giving a ride or doing a delivery, a health care stipend of up to $426 for those that qualified, and accident insurance.\u003c/p>\n\u003cp>An Uber spokesperson said AB 1340, if implemented, would end up increasing the price of rides and suggested that most drivers’ voices may be left out of a union process because only a small proportion work a significant number of hours.\u003c/p>\n\u003cp>They pointed to \u003ca href=\"https://protectdriversandservices.com/wp-content/uploads/2025/01/BRG-Economic-Impact-Analysis_FINAL_1.21.25.pdf\" target=\"_blank\" rel=\"noopener noreferrer\">a report (PDF)\u003c/a> by the Berkeley Research Group, a consulting firm, that found only 7% of drivers for app-based ride and delivery platforms worked more than 20 hours per week. The research was commissioned by Protect App-Based Drivers & Services, a group that counts Uber and Lyft among its members.\u003c/p>\n\u003cp>“Californians are already feeling the squeeze — and this proposal would drive up rideshare costs even more while threatening the flexible jobs thousands depend on,” the Uber spokesperson said. “Drivers have been clear: they want to stay independent and keep the freedom to choose when and how they work, with access to meaningful benefits.”\u003c/p>\n\u003cp>However, at the Sacramento rally, several drivers said their payment for rides has dropped as Uber and Lyft keep a greater share of what customers pay. A \u003ca href=\"https://laborcenter.berkeley.edu/gig-passenger-and-delivery-driver-pay-in-five-metro-areas/\">report by the UC Berkeley Labor Center\u003c/a> last year found that ride-hail drivers in the San Francisco Bay and four other metro areas made less than minimum wage after taking into account expenses and wait times.\u003c/p>\n\u003cfigure id=\"attachment_11770515\" class=\"wp-caption aligncenter\" style=\"max-width: 1920px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-11770515\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2019/08/RS38759__M6A2447-qut.jpg\" alt=\"\" width=\"1920\" height=\"1457\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2019/08/RS38759__M6A2447-qut.jpg 1920w, https://cdn.kqed.org/wp-content/uploads/sites/10/2019/08/RS38759__M6A2447-qut-160x121.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2019/08/RS38759__M6A2447-qut-800x607.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2019/08/RS38759__M6A2447-qut-1020x774.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2019/08/RS38759__M6A2447-qut-1200x911.jpg 1200w\" sizes=\"auto, (max-width: 1920px) 100vw, 1920px\">\u003cfigcaption class=\"wp-caption-text\">Uber and Lyft drivers rallied at Uber headquarters in San Francisco in August 2019 before heading to Sacramento to push for legislation classifying them as employees. \u003ccite>(Sruti Mamidanna/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Nick Calabar Jr. of Stockton said that when he started driving for Uber and Lyft 16 years ago, the pay was decent, but now it’s a struggle to survive. During a ride last week that cost the customer $60, Lyft only paid him $14, he said.\u003c/p>\n\u003cp>“How is that fair? I do all the work, pay for the cost of my car payment each month, cost of charging my vehicle, and not to mention taking all the risks,” Calabar said. “Like thousands of rideshare drivers, working for Uber or Lyft isn’t just a side gig, it’s our job.”\u003c/p>\n\u003cp>The effort to carve a new path for ride-hail drivers to collectively bargain in California comes as attorneys for the state and the cities of San Francisco, Los Angeles and San Diego are meeting Tuesday for a closed-door \u003ca href=\"https://www.kqed.org/news/12033648/uber-lyft-withheld-billions-in-pay-california-alleges-settlement-talks-are-underway\">mediation session\u003c/a> with Lyft. Another is planned with Uber for next month.\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>The negotiations stem from yearslong lawsuits by the California labor commissioner’s office, as well as the attorney general’s office and the three cities. Those legal challenges allege Uber and Lyft owe potentially billions of dollars in wages and damages to drivers misclassified as independent contractors before Proposition 22 passed.\u003c/p>\n\u003cp>Last fall, Massachusetts \u003ca href=\"https://www.reuters.com/business/autos-transportation/massachusetts-voters-allow-uber-lyft-drivers-unionize-2024-11-06/#:~:text=BOSTON%2C%20Nov%206%20(Reuters),based%20companies%20like%20Uber%20(UBER.\">became the first state\u003c/a> to allow ride-hail drivers to unionize as independent contractors. The companies did not formally oppose that measure.\u003c/p>\n\u003cp>The Massachusetts Department of Labor is drafting regulations on the nuts and bolts of how the measure will work, including what happens if negotiations break down or what behavior constitutes as an unfair labor practice, said Maria O’Brien, who teaches employment law at Boston University.\u003c/p>\n\u003cp>“Even though Uber and Lyft did not formally oppose this, I would be very surprised if they simply rolled over once the regs are issued,” O’Brien said, pointing to companies’ track record of fighting policies they perceived as threats to their revenue and profits. “It wouldn’t surprise me, depending on what the regulations say, if you were to see lawsuits from Uber and Lyft.”\u003c/p>\n\u003cp>For the estimated 70,000 ride-hail drivers in that state, an option to engage in collective negotiations could build on gains achieved through a \u003ca href=\"https://www.mass.gov/info-details/uber-and-lyft-settlement-information-and-frequently-asked-questions\">settlement \u003c/a>between the Massachusetts attorney general’s office and Uber and Lyft last year, she said.\u003c/p>\n\u003cp>In that deal, the companies agreed to pay a combined total of $175 million, most of it in restitution to drivers who were underpaid. Uber and Lyft must also compensate drivers at least $33.48 per hour for time spent picking up and driving a customer, an amount that will be adjusted annually for inflation.\u003c/p>\n\u003cp>“I think that the drivers themselves view the settlement as a promising first step, but view the union as a mechanism by which they’re going to get increases going forward,” O’Brien said.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cp>U.S. Supreme Court justices on Monday declined to hear an appeal from \u003ca href=\"https://www.kqed.org/news/tag/uber\">Uber\u003c/a> and \u003ca href=\"https://www.kqed.org/news/tag/lyft\">Lyft\u003c/a> that sought to block California state labor lawsuits over back pay for drivers.\u003c/p>\n\u003cp>The decision — or lack thereof — let stand a California appeals court ruling from 2023 that allowed the state lawsuits to proceed because state officials never agreed to be bound by employer arbitration agreements.\u003c/p>\n\u003cp>“The California Court of Appeal basically said, look, these state agencies, they get to go into court, and they have the authority to undertake enforcement actions to enforce the law,” said Cheryl Sabnis, who practices employer-side labor law in San Francisco for Vedder Price.\u003c/p>\n\u003cp>“This is not a private dispute necessarily between an individual and a company where you would definitely see a motion to compel arbitration. You know, often those are granted. This is a very different animal,” she added.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003ch2>Here’s what you need to know:\u003c/h2>\n\u003cp>Four years ago, California Atty. Gen. Rob Bonta and Labor Commissioner Lilia Garcia-Brower sued the ride-hailing companies for the “misclassification of drivers as independent contractors” rather than as employees. The suit sought money “for unpaid wages and penalties owed to workers which will be distributed to all drivers who worked for Uber or Lyft during the time period covered by the lawsuits.”\u003c/p>\n\u003cp>The lawsuit continued even after voters approved Proposition 22 in 2020 to uphold the authority of companies to classify drivers as independent contractors. Uber, Lyft and DoorDash, among other companies, spent more than $200 million to back the ballot measure, which was approved by 59% of voters in November 2020. The initiative was in response to \u003ca href=\"https://www.kqed.org/news/tag/ab5\">Assembly Bill 5\u003c/a>, a state law that made it more difficult to classify drivers as independent contractors.\u003c/p>\n\u003cfigure id=\"attachment_11959050\" class=\"wp-caption aligncenter\" style=\"max-width: 2000px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-11959050\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2023/08/230824-UBER-Getty-RB-KQED.jpg\" alt='A white bumpersticker with the word \"Uber\" written on it on a car bumper.' width=\"2000\" height=\"1333\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2023/08/230824-UBER-Getty-RB-KQED.jpg 2000w, https://cdn.kqed.org/wp-content/uploads/sites/10/2023/08/230824-UBER-Getty-RB-KQED-800x533.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2023/08/230824-UBER-Getty-RB-KQED-1020x680.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2023/08/230824-UBER-Getty-RB-KQED-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2023/08/230824-UBER-Getty-RB-KQED-1536x1024.jpg 1536w, https://cdn.kqed.org/wp-content/uploads/sites/10/2023/08/230824-UBER-Getty-RB-KQED-1920x1280.jpg 1920w\" sizes=\"(max-width: 2000px) 100vw, 2000px\">\u003cfigcaption class=\"wp-caption-text\">An Uber sticker is seen on a car on Aug. 20, 2020 in Los Angeles. \u003ccite>(Robyn Beck/AFP via Getty Images)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>In its ruling last year, the state appeals court in San Francisco said California officials were not suing on behalf of drivers so much as enforcing state labor laws. “The public officials who brought these actions do not derive their authority from individual drivers but from their independent statutory authority to bring civil enforcement actions,” \u003ca href=\"https://casetext.com/case/in-re-uber-techs-wage-hour-cases\">Justice Jon Streeter wrote\u003c/a> for the California Court of Appeal.\u003c/p>\n\u003cp>In January, the state Supreme Court refused to hear an appeal. Uber and Lyft then asked the U.S. Supreme Court to weigh in.\u003c/p>\n\u003cp>The California attorney general’s office applauded the high court’s move on Monday. “We’re pleased by the U.S. Supreme Court’s decision to deny certiorari in this case, allowing the case to proceed in the California Superior Court,” the office said in a statement, adding that it “remains committed to defending the rights of California workers to receive the benefits and protections to which they are legally entitled.”\u003c/p>\n\u003ch2>Driving the story\u003c/h2>\n\u003cp>Uber and Lyft have been locked in a years-long battle with the state of California over how to classify gig workers. In their\u003ca href=\"https://www.scotusblog.com/case-files/cases/uber-technologies-inc-v-california/\"> appeal to the Supreme Court, lawyers for Uber\u003c/a> and Lyft, joined by a coalition of California employers, contended that the Federal Arbitration Act overrides state laws and blocks state lawsuits seeking money for employees who already agreed to arbitrate claims as individuals.\u003c/p>\n\u003cp>[aside postID=news_12007450 hero='https://ww2.kqed.org/app/uploads/sites/10/2017/10/RS27783_GettyImages-461843616-qut-1180x782.jpg']\u003c/p>\n\u003cp>The U.S. Supreme Court \u003ca href=\"https://www.supremecourt.gov/docket/docketfiles/html/public/23-1130.html\">provided no explanatio\u003c/a>n along with its determination not to hear appeals from\u003ca href=\"https://www.kqed.org/news/tag/uber\"> Uber\u003c/a> and\u003ca href=\"https://www.kqed.org/news/tag/lyft\"> Lyft\u003c/a> asking to block state labor lawsuits over back pay for drivers. That kicks the case back to state courts, but it means there’s a continuing lack of clarity, according to UC Santa Cruz sociology professor Steve McKay, who directs the university’s Center for Labor and Community.\u003c/p>\n\u003cp>“When we have a system where employers pay for a lot of the benefits, who’s covered and how? And that’s actually falling more and more to the state to provide that then if employers aren’t doing it,” McKay said.\u003c/p>\n\u003cp>There’s a lot of money at stake, he explained.\u003c/p>\n\u003cp>“When you’re an independent contractor, you’re not covered by worker protections such as wage and hour laws, anti-discrimination laws, and laws providing the ability for collective bargaining. If you’re a contractor, you don’t receive unemployment benefits. When you’re temporarily jobless, you don’t get worker’s comp if you’re injured, and you’re responsible for paying all the payroll tax,” McKay said.\u003c/p>\n\u003ch2>The company take\u003c/h2>\n\u003cp>Two years ago, the justices struck down part of California state law that\u003ca href=\"https://www.supremecourt.gov/opinions/21pdf/20-1573_8p6h.pdf\"> authorized private attorneys to sue\u003c/a> on behalf of a group of employees, even though they had agreed to be bound by individual arbitration.\u003c/p>\n\u003cp>Theane Evangelis, counsel for Uber, wrote in a statement to KQED, “While the Supreme Court did not take this opportunity to weigh in now, it should do so in the future, holding once again that the FAA preempts state efforts to undermine arbitration agreements.”\u003c/p>\n\u003cp>“It is also important to note that the Supreme Court is still considering our constitutional challenge to AB5,” she continued. “As we explained in detail in our complaint in that case — and to which a three-judge panel of the Ninth Circuit unanimously agreed — in enacting AB5, the California legislature unfairly targeted my clients out of animus rather than reason. We’re asking the U.S. Supreme Court to grant review and give us our day in court.”\u003c/p>\n\u003cp>\u003c/p>\n",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003cp>U.S. Supreme Court justices on Monday declined to hear an appeal from \u003ca href=\"https://www.kqed.org/news/tag/uber\">Uber\u003c/a> and \u003ca href=\"https://www.kqed.org/news/tag/lyft\">Lyft\u003c/a> that sought to block California state labor lawsuits over back pay for drivers.\u003c/p>\n\u003cp>The decision — or lack thereof — let stand a California appeals court ruling from 2023 that allowed the state lawsuits to proceed because state officials never agreed to be bound by employer arbitration agreements.\u003c/p>\n\u003cp>“The California Court of Appeal basically said, look, these state agencies, they get to go into court, and they have the authority to undertake enforcement actions to enforce the law,” said Cheryl Sabnis, who practices employer-side labor law in San Francisco for Vedder Price.\u003c/p>\n\u003cp>“This is not a private dispute necessarily between an individual and a company where you would definitely see a motion to compel arbitration. You know, often those are granted. This is a very different animal,” she added.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003ch2>Here’s what you need to know:\u003c/h2>\n\u003cp>Four years ago, California Atty. Gen. Rob Bonta and Labor Commissioner Lilia Garcia-Brower sued the ride-hailing companies for the “misclassification of drivers as independent contractors” rather than as employees. The suit sought money “for unpaid wages and penalties owed to workers which will be distributed to all drivers who worked for Uber or Lyft during the time period covered by the lawsuits.”\u003c/p>\n\u003cp>The lawsuit continued even after voters approved Proposition 22 in 2020 to uphold the authority of companies to classify drivers as independent contractors. Uber, Lyft and DoorDash, among other companies, spent more than $200 million to back the ballot measure, which was approved by 59% of voters in November 2020. The initiative was in response to \u003ca href=\"https://www.kqed.org/news/tag/ab5\">Assembly Bill 5\u003c/a>, a state law that made it more difficult to classify drivers as independent contractors.\u003c/p>\n\u003cfigure id=\"attachment_11959050\" class=\"wp-caption aligncenter\" style=\"max-width: 2000px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-11959050\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2023/08/230824-UBER-Getty-RB-KQED.jpg\" alt='A white bumpersticker with the word \"Uber\" written on it on a car bumper.' width=\"2000\" height=\"1333\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2023/08/230824-UBER-Getty-RB-KQED.jpg 2000w, https://cdn.kqed.org/wp-content/uploads/sites/10/2023/08/230824-UBER-Getty-RB-KQED-800x533.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2023/08/230824-UBER-Getty-RB-KQED-1020x680.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2023/08/230824-UBER-Getty-RB-KQED-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2023/08/230824-UBER-Getty-RB-KQED-1536x1024.jpg 1536w, https://cdn.kqed.org/wp-content/uploads/sites/10/2023/08/230824-UBER-Getty-RB-KQED-1920x1280.jpg 1920w\" sizes=\"(max-width: 2000px) 100vw, 2000px\">\u003cfigcaption class=\"wp-caption-text\">An Uber sticker is seen on a car on Aug. 20, 2020 in Los Angeles. \u003ccite>(Robyn Beck/AFP via Getty Images)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>In its ruling last year, the state appeals court in San Francisco said California officials were not suing on behalf of drivers so much as enforcing state labor laws. “The public officials who brought these actions do not derive their authority from individual drivers but from their independent statutory authority to bring civil enforcement actions,” \u003ca href=\"https://casetext.com/case/in-re-uber-techs-wage-hour-cases\">Justice Jon Streeter wrote\u003c/a> for the California Court of Appeal.\u003c/p>\n\u003cp>In January, the state Supreme Court refused to hear an appeal. Uber and Lyft then asked the U.S. Supreme Court to weigh in.\u003c/p>\n\u003cp>The California attorney general’s office applauded the high court’s move on Monday. “We’re pleased by the U.S. Supreme Court’s decision to deny certiorari in this case, allowing the case to proceed in the California Superior Court,” the office said in a statement, adding that it “remains committed to defending the rights of California workers to receive the benefits and protections to which they are legally entitled.”\u003c/p>\n\u003ch2>Driving the story\u003c/h2>\n\u003cp>Uber and Lyft have been locked in a years-long battle with the state of California over how to classify gig workers. In their\u003ca href=\"https://www.scotusblog.com/case-files/cases/uber-technologies-inc-v-california/\"> appeal to the Supreme Court, lawyers for Uber\u003c/a> and Lyft, joined by a coalition of California employers, contended that the Federal Arbitration Act overrides state laws and blocks state lawsuits seeking money for employees who already agreed to arbitrate claims as individuals.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>The U.S. Supreme Court \u003ca href=\"https://www.supremecourt.gov/docket/docketfiles/html/public/23-1130.html\">provided no explanatio\u003c/a>n along with its determination not to hear appeals from\u003ca href=\"https://www.kqed.org/news/tag/uber\"> Uber\u003c/a> and\u003ca href=\"https://www.kqed.org/news/tag/lyft\"> Lyft\u003c/a> asking to block state labor lawsuits over back pay for drivers. That kicks the case back to state courts, but it means there’s a continuing lack of clarity, according to UC Santa Cruz sociology professor Steve McKay, who directs the university’s Center for Labor and Community.\u003c/p>\n\u003cp>“When we have a system where employers pay for a lot of the benefits, who’s covered and how? And that’s actually falling more and more to the state to provide that then if employers aren’t doing it,” McKay said.\u003c/p>\n\u003cp>There’s a lot of money at stake, he explained.\u003c/p>\n\u003cp>“When you’re an independent contractor, you’re not covered by worker protections such as wage and hour laws, anti-discrimination laws, and laws providing the ability for collective bargaining. If you’re a contractor, you don’t receive unemployment benefits. When you’re temporarily jobless, you don’t get worker’s comp if you’re injured, and you’re responsible for paying all the payroll tax,” McKay said.\u003c/p>\n\u003ch2>The company take\u003c/h2>\n\u003cp>Two years ago, the justices struck down part of California state law that\u003ca href=\"https://www.supremecourt.gov/opinions/21pdf/20-1573_8p6h.pdf\"> authorized private attorneys to sue\u003c/a> on behalf of a group of employees, even though they had agreed to be bound by individual arbitration.\u003c/p>\n\u003cp>Theane Evangelis, counsel for Uber, wrote in a statement to KQED, “While the Supreme Court did not take this opportunity to weigh in now, it should do so in the future, holding once again that the FAA preempts state efforts to undermine arbitration agreements.”\u003c/p>\n\u003cp>“It is also important to note that the Supreme Court is still considering our constitutional challenge to AB5,” she continued. “As we explained in detail in our complaint in that case — and to which a three-judge panel of the Ninth Circuit unanimously agreed — in enacting AB5, the California legislature unfairly targeted my clients out of animus rather than reason. We’re asking the U.S. Supreme Court to grant review and give us our day in court.”\u003c/p>\n\u003cp>\u003c/p>\n\u003c/div>\u003c/p>",
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"slug": "some-gig-workers-say-they-are-seeing-little-of-prop-22-promises-and-lack-of-enforcement-from-state",
"title": "Gig Workers Are Seeing Little of Prop. 22 Promises — and Lack of Enforcement From State",
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"headTitle": "Gig Workers Are Seeing Little of Prop. 22 Promises — and Lack of Enforcement From State | KQED",
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"content": "\u003cp>Nearly four years after California voters approved better wages and health benefits for ride-hailing drivers and delivery workers, no one is actually ensuring they are provided, according to state agencies, interviews with workers and a review of wage claims filed with the state.\u003c/p>\n\u003cp>Voters mandated the benefits in November 2020 when they approved \u003ca href=\"https://calmatters.org/tag/proposition-22/\">Proposition 22\u003c/a>. The ballot initiative was backed by gig-work companies that wanted to keep their workers classified as independent contractors and were resisting a \u003ca href=\"https://calmatters.org/economy/2024/06/ab-5-california-uber/\">2019 state law\u003c/a> that would have considered them employees. Prop. 22 stipulated that gig workers would remain independent contractors but be treated better.\u003c/p>\n\u003cp>The state Industrial Relations Department, which handles wage claims, now tells CalMatters it does not have jurisdiction to resolve those related to Prop. 22, citing a \u003ca href=\"https://calmatters.org/economy/2024/07/prop-22-california-gig-work-law-upheld/\">July 25 California Supreme Court ruling\u003c/a> that upheld the law and therefore maintains that gig workers are not employees. That effectively passes enforcement responsibility on to the state attorney general, whose office was noncommittal when asked about its plans, saying that it does not adjudicate individual claims but does prosecute companies that systematically violate the law.\u003c/p>\n\u003cp>The lack of enforcement leaves in limbo workers who in many cases have already been waiting for months or years for the state to resolve their complaints. Workers have filed 54 claims related to Prop. 22 since it went into effect in December 2020. At least 32 of them are unresolved, state records obtained by CalMatters show, although at least two of those are due to workers not following through.\u003c/p>\n\u003cp>Of the unresolved claims, one goes back to 2021, several are from 2022 and 2023, and about half are from this year, through May.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>Emails included with the claims show that the Industrial Relations Department told one worker it was severely understaffed, and seven others, starting in 2022, that it did not have jurisdiction to help them since they were independent contractors rather than employees.\u003c/p>\n\u003cp>Although the number of claims filed with the state represent just a fraction of the more than 1 million gig workers in California, they give a glimpse into what happens when workers turn to the state for help instead of the companies that backed Prop. 22.\u003c/p>\n\u003cp>Workers say in the claims, and in interviews with CalMatters, that companies such as Uber, Lyft and Instacart failed to provide higher wages and health care stipends under the law, and that the companies’ representatives sometimes act confused or take a long time to handle their requests for Prop. 22 benefits. The gig companies have touted the law as something that has boosted pay and benefits, and have said it has helped gig workers hang on to work they can do whenever they want.\u003c/p>\n\u003cp>Laura Robinson is among the workers who have had to aggressively pursue what they believe they’re owed under the law. For the past year, she has filed claims with the state and fought two different gig-work companies for different benefits promised under Prop. 22. \u003c/p>\n\u003cfigure id=\"attachment_12003065\" class=\"wp-caption alignright\" style=\"max-width: 600px\">\u003cimg loading=\"lazy\" decoding=\"async\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/09/052024_Laura-Robinson_ZS_CM_09-1-800x1200.jpg\" alt=\"\" width=\"600\" height=\"1000\" class=\"size-medium wp-image-12003065\">\u003cfigcaption class=\"wp-caption-text\">Laura Robinson in her home in Irvine on May 20, 2024. Robinson, who was in a car accident last year while working for Instacart, was recently informed she will receive occupational accident insurance after months of effort. \u003ccite>(Laura Robinson in her home in Irvine on May 20, 2024. Robinson, who was in a car accident last year while working for Instacart, was recently informed she will receive occupational accident insurance after months of effort. Photo by Zaydee Sanchez/CalMatters)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp> She was making a delivery for Instacart a year ago, she said, when a driver making a U-turn hit her, totaling her car. Now, she said, she has lingering back pain, and has only been able to make a total of a few deliveries over the past several months.\u003c/p>\n\u003cp>Robinson, who lives in Irvine, tried to get Instacart to retroactively provide her with occupational accident insurance as required under Prop. 22.\u003c/p>\n\u003cp>When she first contacted Instacart about the collision, “four or five different (representatives) told me on chat ‘we don’t provide insurance,’ but I told them this is California,” Robinson said. “Finally someone said ‘oh yeah, I know what you’re talking about.’ ” Robinson had some difficulties documenting the accident, because, she said, the responding Torrance Police Department officer rode away on his motorcycle without writing a report. But after about seven months, she finally heard back from Zurich, Instacart’s insurance provider. She received a lump sum, and monthly payments for the time that she has been largely unable to work, according to bank statements and emails from Zurich to her, which she shared with CalMatters.\u003c/p>\n\u003cp>Instacart spokesperson Charlotte Healow said all the company’s shopper support agents should know about “shopper injury protection” and that there is information in the app about how to go about filing claims. But Robinson showed CalMatters several screenshots of her chats with support agents who either thought she was asking about health insurance or who told her someone would email her back about her situation — which eventually happened, though it took a few tries.\u003c/p>\n\u003cp>Robinson said she had also struggled to get a smaller gig platform, food delivery app Curri, to comply with the law. Under Prop. 22, ride-hailing and delivery gig companies are supposed to pay her 120% of minimum wage for the time she spends driving, making up for any shortfall in the pay she receives, but Curri had not done so, she said. Not knowing where to turn, she asked a few different state agencies for help, including the attorney general’s office. She even lodged a complaint with the Federal Motor Carrier Safety Administration’s National Consumer Complaint Database. After several months, the Industrial Relations Department scheduled a hearing for her case for Aug. 29. Last week, the department told her the company decided to settle and pay her what it owed, according to emails and a release she signed that she shared with CalMatters. Curri’s marketing director referred CalMatters to the company’s legal department, which did not return three emailed requests for comment.\u003c/p>\n\u003cp>Robinson saw the upside of Prop. 22 after it passed. She liked being able to continue setting her own hours and saw a bump in her earnings delivering for Grubhub due to the law. But she is now frustrated about how tough it was to figure out who’s supposed to be upholding it.\u003c/p>\n\u003cp>“It’s not helpful if it’s not enforced or applied,” she said. \u003c/p>\n\u003cp>Robinson said the deputy labor commissioner she was in touch with throughout the process of pursuing her claim against Curri told her last week that because Prop. 22 was upheld by the state Supreme Court — effectively ensuring gig workers cannot be considered employees — the department would no longer be handling similar cases because it does not have jurisdiction over independent contractors.\u003c/p>\n\u003ch2>What gig workers are complaining about\u003c/h2>\n\u003cp>The Prop. 22-related wage claims reviewed by CalMatters were part of a larger set of nearly 200 claims that gig workers filed with the Industrial Relations Department since the law took effect in December 2020. Citing the California Public Records Act, CalMatters sought all wage claims in that timeframe involving gig companies, but the state did not provide any claims against DoorDash, which is one of the biggest of the app-based gig companies. A department spokesperson could not explain why.\u003c/p>\n\u003cp>Most of the claimants sought delayed or unpaid wages, including adjustments owed under Prop. 22. Others sought health care stipends required under the gig-work law, and one driver said he sought occupational accident insurance but did not receive it.\u003c/p>\n\u003cp>The claims also shed light on the mechanics of how app companies are allegedly withholding wages. In them, some gig workers claimed that they were deactivated — kicked off or fired by the app — before receiving all their wages. [aside label=\"Related Stories\" tag=\"proposition-22\"]The records also indicate the state had trouble holding app companies to account in a timely fashion. In emails about the claims, some workers frequently asked for updates about their cases and complained about limited communications from the state. This prompted one supervisor in the Industrial Relations Department’s San Francisco office to \u003ca href=\"https://calmatters.org/wp-content/uploads/2024/08/CM-1006930-PRA-HQ-46848.pdf\">respond by email\u003c/a> on May 30, 2024, seemingly noting that gig workers’ complaints were just a fraction of the array of worker complaints the state fields: “I am working with 40% staff shortage. There are over 3,000 cases, most of which are older than yours, and only seven people (total) to handle them.” The department did not respond to requests for comment on whether this shortfall persists.\u003c/p>\n\u003cp>Monetary wage claims ranged from about $2 to nearly $420,000. Most — 54% — were against ride-hailing and delivery giant Uber and 25% were against its rides competitor Lyft. There were 17 claims against grocery-delivery app maker Instacart, seven against food-delivery platform Grubhub, four against Target-owned delivery service Shipt and three against UPS-owned delivery service Roadie.\u003c/p>\n\u003cp>The Industrial Relations Department has long tried to resolve gig workers’ wage disputes. The labor commissioner, who heads the department’s Labor Standards Enforcement Division, still has pending \u003ca href=\"https://www.dir.ca.gov/dlse/Lawsuits-Uber-Lyft.html\">wage-theft lawsuits\u003c/a> against Uber and Lyft that it filed in 2020 on behalf of about 5,000 workers with wage claims going back to 2017.\u003c/p>\n\u003cp>Those cases predate Prop. 22, originating during a period when gig workers were misclassified and should have been considered employees under California law, the labor commissioner argues in the wage-theft suits. After Prop. 22 passed, opponents challenged it and the case ended up before the California Supreme Court, which upheld the law in July, effectively affirming that drivers are independent contractors, not employees. A department spokesperson, Peter Melton, said the ruling means the department can no longer handle claims about missing wage adjustments under the earnings guarantee, unpaid health care stipends or other aspects of the law.\u003c/p>\n\u003cp>Department representatives made similar statements to workers even before Prop. 22 was upheld, the claims records show. An email response, dated March 26, 2024, from the department to an Uber driver \u003ca href=\"https://calmatters.org/wp-content/uploads/2024/08/CM-1007106-PRA-HQ-46848.pdf\">stated\u003c/a>: “The Division of Labor Standards Enforcement enforces employment law. We cannot enforce Prop 22 earnings because they aren’t ‘wages’ earned by ‘employees’.”\u003c/p>\n\u003cp>This echoes the position lawyers for Uber and Lyft took in some of the records when responding to wage claims. They asked the state to dismiss such claims, writing in \u003ca href=\"https://calmatters.org/wp-content/uploads/2024/08/CM-1003300-PRA-HQ-46848.pdf\">one email\u003c/a>: “As of December 16, 2020, drivers using Lyft’s platform are considered independent contractors by statute and, thus, cannot seek relief under the Labor Code.” [aside label=\"More Coverage\" tag=\"gig-economy\"]Now that the department has disavowed responsibility for Prop. 22 claims, the question remains: Who will enforce the law?\u003c/p>\n\u003cp>Scott Kronland, the attorney for Service Employees International Union California who unsuccessfully argued before the state Supreme Court that it should throw out Prop. 22, told CalMatters: “I’ve also heard from drivers that they’re not getting the things they’re promised by Prop. 22.”\u003c/p>\n\u003cp>Kronland said their recourse, after the ruling, is to press local prosecutors or the attorney general, who have the ability to hold companies liable for unlawful business practices under the state’s Unfair Competition Law. Still, he said “enforcement is something the Legislature could clarify.”\u003c/p>\n\u003cp>In an unsigned email response to CalMatters’ questions after the state Supreme Court decision, including whether it planned to pursue Prop.-22-related cases against gig-work companies, the attorney general’s office said gig workers can submit complaints at \u003ca href=\"http://oag.ca.gov/report\">oag.ca.gov/report\u003c/a>. The email added: “Although the Attorney General does not represent individual workers or adjudicate individual complaints by holding administrative hearings like (the Department of Industrial Relations), DOJ brings lawsuits to hold accountable companies that systematically break the law, for example through widespread violations of wage and hour standards. Reports or complaints of employer misconduct are an important part of our work.”\u003c/p>\n\u003cp>When CalMatters previously asked the attorney general’s office for copies of any wage complaints it had received from gig workers thus far, a spokesperson responded that the office was representing the state in its effort to defend \u003ca href=\"https://calmatters.org/economy/2024/05/prop-22-oral-arguments/\">Prop. 22 before the California Supreme Court\u003c/a> — and referred CalMatters back to the Industrial Relations Department.\u003c/p>\n\u003ch3>What gig companies share about Prop. 22’s impact\u003c/h3>\n\u003cp>Gig companies have said that, due in part to the initiative’s earnings guarantee, workers now make more than $30 an hour. But a May study by the UC Berkeley Labor Center found that, for California ride-hailing drivers, average earnings after expenses, not including tips, is about $7.12 an hour, and for delivery workers, $5.93. With tips, drivers’ average hourly earnings are $9.09 an hour, and $13.62 for delivery workers, the study found.\u003c/p>\n\u003cp>To better understand the impact of Prop. 22, CalMatters asked each of the four largest gig companies — Uber, Lyft, DoorDash and Instacart — the following:\u003c/p>\n\u003cul class=\"wp-block-list\">\n\u003cli>How much they have spent on delivering on each of Prop. 22’s four main promises:\n\u003cul class=\"wp-block-list\">\n\u003cli>120% of minimum wage earnings guarantee\u003c/li>\n\u003cli>Health care stipends\u003c/li>\n\u003cli>Occupational accident insurance\u003c/li>\n\u003cli>Accidental death insurance\u003c/li>\n\u003c/ul>\n\u003c/li>\n\u003cli>How many gig workers have received each of the promised benefits.\u003c/li>\n\u003cli>Whether they have passed on costs to consumers, and if so, where they account for those customer fees in their public financial filings.\u003c/li>\n\u003cli>How they handle complaints or issues related to their promises.\u003c/li>\n\u003c/ul>\n\u003cp>Lyft said 85% of California Lyft drivers who have driven for the company since Prop. 22 went into effect have received at least one wage “top up” — the additional money drivers receive under the earnings guarantee — through the end of the fourth quarter of 2023, though spokesperson Shadawn Reddick-Smith would not provide specific numbers of Lyft drivers in the state. None of the other companies would give any information on their delivery of the wage guarantee.\u003c/p>\n\u003cp>Instacart spokesperson Healow said the company has paid out about $40 million in health care subsidies to its delivery workers, which she said number in the tens of thousands in the state. She also said about 11% of California shoppers have become eligible for a health care stipend since Prop. 22 took effect, and that 28% of those eligible shoppers have redeemed their subsidy.\u003c/p>\n\u003cp>To qualify for the health care stipends, workers must work at least 15 hours a week each quarter, and be enrolled in health insurance that is not provided by an employer or the government. Because the gig companies won’t share how many workers have received the stipends, CalMatters asked the state health insurance exchange, Covered California, if it had data that might help shed some light. Seven percent of the 1.6 million people who used Covered California reported doing gig work in a 2023 survey, said a spokesperson for the exchange, Jagdip Dhillon.\u003c/p>\n\u003cp>DoorDash spokesperson Parker Dorrough said that just 11% of eligible couriers used the health care stipend in the fourth quarter of 2023 but that 80% of DoorDash’s delivery workers had health care coverage through another source, such as their full-time job or spouse.\u003c/p>\n\u003cp>None of the other companies would give any information on their delivery of the stipend. Lyft’s Reddick-Smith said 80% of California Lyft drivers already have health care coverage, including 13% who bought their own coverage (this second group is the set of drivers who qualified for the stipend).\u003c/p>\n\u003cfigure id=\"attachment_12003067\" class=\"wp-caption center\" style=\"max-width: 2560px\">\u003cimg loading=\"lazy\" decoding=\"async\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/09/GettyImages-1448862196-1-scaled.jpg\" alt=\"\" width=\"2560\" height=\"1721\" class=\"size-full wp-image-12003067\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/09/GettyImages-1448862196-1-scaled.jpg 2560w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/09/GettyImages-1448862196-1-800x538.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/09/GettyImages-1448862196-1-1020x686.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/09/GettyImages-1448862196-1-160x108.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/09/GettyImages-1448862196-1-1536x1033.jpg 1536w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/09/GettyImages-1448862196-1-2048x1377.jpg 2048w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/09/GettyImages-1448862196-1-1920x1291.jpg 1920w\" sizes=\"(max-width: 2560px) 100vw, 2560px\">\u003cfigcaption class=\"wp-caption-text\">A sign is posted on a car as gig workers with the California Gig Workers Union stage a rally against Proposition 22 outside of the California First Appellate District Court of Appeal on December 13, 2022 in San Francisco, California. \u003ccite>(Justin Sullivan/Getty Images)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>None of the four companies provided the numbers of workers who have used occupational accident or accidental death insurance.\u003c/p>\n\u003cp>None of the companies would disclose how they account for the fees they charge customers for Prop. 22 expenses, nor are the fees included in their publicly available financial filings. Instacart said it does not charge customers for expenses associated with Prop. 22. Lyft said its per-ride service fee includes a 75-cent “California Driver Benefits Fee.” Uber charges customers a “CA Driver Benefits” fee for each ride and delivery in the state and spokesperson Zahid Arab said the company has “invested more than we collected in fees.”\u003c/p>\n\u003cp>Uber published a blog post after CalMatters’ questions, saying it has “invested” more than $1 billion in Prop. 22 benefits. Arab would not break down these benefits further.\u003c/p>\n\u003cp>As for complaints related to the promises, each of the companies said workers should contact support agents, whom they can usually get in touch with in the app; an Instacart spokesperson said workers can make some claims directly in the company’s app.\u003c/p>\n\u003ch3>Seeing little from Prop. 22\u003c/h3>\n\u003cp>Ride-hailing driver Sergio Avedian last year helped raise public awareness of the lack of Prop. 22 enforcement. Specifically, he homed in on one narrow issue: Under the law, gig-work companies were supposed to adjust for inflation each year the reimbursement they pay to drivers for mileage. Avedian said no such adjustment had taken place for two consecutive years. And as a podcaster and contributor to the Rideshare Guy, a popular gig-work blog, he had a high profile. Avedian and a fellow eagle-eyed driver started pestering the state’s treasurer’s office, which had not published the adjusted rates as stipulated under Prop 22. The office eventually did so and, the Los Angeles Times reported, put the state’s gig workers \u003ca href=\"https://www.latimes.com/business/technology/story/2023-06-01/column-uber-david-and-goliath\">on track to get back pay for the mileage expenses\u003c/a> — pay potentially worth hundreds of millions of dollars.\u003c/p>\n\u003cp>Now, a year later, Avedian is curious about gig-company math again. He has asked Uber some of the same questions CalMatters did — including how the company accounts for the driver-benefits fee it adds on to each ride or delivery. The company’s response to him was similar — it provided few specifics.\u003c/p>\n\u003cp>Besides his concern about the issue as a driver, Avedian said “as a consumer who is paying into the Prop. 22 fund on every trip or delivery, I would like to know the accounting of where my money is going.”\u003c/p>\n\u003cp>When the gig companies were campaigning for Prop. 22, they implored voters to “\u003ca href=\"https://www.youtube.com/watch?v=-7QJLgdQaf4\">help create a better path forward for drivers\u003c/a>.”\u003c/p>\n\u003cp>But Avedian and other gig workers in California say their paths have not changed much. Many still complain about low wages, little transparency from the companies and lack of worker protections.\u003c/p>\n\u003cp>Yasha Timenovich said he has worked as a ride-hailing driver for a decade, first with Uber, now with Lyft.\u003c/p>\n\u003cp>“I work 12, 13, 14 hours a day,” said Timenovich, who drives in the Los Angeles area. “But the time I sit and wait at LAX is not accounted for.” He said he has to work long hours to try to make sure he has enough earnings. “We’re not completely independent contractors. We’re not employees. We’re sort of a hybrid model of theirs. We’re pretty much nobody.”\u003c/p>\n\u003cp>He also said he must obtain health insurance through Medi-Cal, California’s health care coverage for low-income residents — which in turn means he doesn’t qualify for the health care stipend. He said every driver he knows “is on Medi-Cal because they can’t afford health insurance. I don’t know anyone who has (the stipend).”\u003c/p>\n\u003cp>[ad floatright]\u003c/p>\n\u003cp>Many drivers voted for Prop. 22, he said. But “what we were told was a lie.”\u003c/p>\n\u003cdiv class=\"wp-block-newspack-blocks-homepage-articles cm-manual-eoa-recirc wpnbha show-image image-alignleft ts-3 is-1 is-landscape cm-manual-eoa-recirc has-text-align-left\">\n\u003cdiv data-posts=\"\" data-current-post-id=\"438437\">\u003c/div>\n\u003c/div>\n\n",
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"excerpt": "Gig companies pushed for Prop. 22, promising improved pay and benefits for California workers. But when companies fail to deliver, the state isn’t doing much to help push back.",
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"title": "Gig Workers Are Seeing Little of Prop. 22 Promises — and Lack of Enforcement From State | KQED",
"description": "Gig companies pushed for Prop. 22, promising improved pay and benefits for California workers. But when companies fail to deliver, the state isn’t doing much to help push back.",
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"headline": "Gig Workers Are Seeing Little of Prop. 22 Promises — and Lack of Enforcement From State",
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"source": "CalMatters",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003cp>Nearly four years after California voters approved better wages and health benefits for ride-hailing drivers and delivery workers, no one is actually ensuring they are provided, according to state agencies, interviews with workers and a review of wage claims filed with the state.\u003c/p>\n\u003cp>Voters mandated the benefits in November 2020 when they approved \u003ca href=\"https://calmatters.org/tag/proposition-22/\">Proposition 22\u003c/a>. The ballot initiative was backed by gig-work companies that wanted to keep their workers classified as independent contractors and were resisting a \u003ca href=\"https://calmatters.org/economy/2024/06/ab-5-california-uber/\">2019 state law\u003c/a> that would have considered them employees. Prop. 22 stipulated that gig workers would remain independent contractors but be treated better.\u003c/p>\n\u003cp>The state Industrial Relations Department, which handles wage claims, now tells CalMatters it does not have jurisdiction to resolve those related to Prop. 22, citing a \u003ca href=\"https://calmatters.org/economy/2024/07/prop-22-california-gig-work-law-upheld/\">July 25 California Supreme Court ruling\u003c/a> that upheld the law and therefore maintains that gig workers are not employees. That effectively passes enforcement responsibility on to the state attorney general, whose office was noncommittal when asked about its plans, saying that it does not adjudicate individual claims but does prosecute companies that systematically violate the law.\u003c/p>\n\u003cp>The lack of enforcement leaves in limbo workers who in many cases have already been waiting for months or years for the state to resolve their complaints. Workers have filed 54 claims related to Prop. 22 since it went into effect in December 2020. At least 32 of them are unresolved, state records obtained by CalMatters show, although at least two of those are due to workers not following through.\u003c/p>\n\u003cp>Of the unresolved claims, one goes back to 2021, several are from 2022 and 2023, and about half are from this year, through May.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>Emails included with the claims show that the Industrial Relations Department told one worker it was severely understaffed, and seven others, starting in 2022, that it did not have jurisdiction to help them since they were independent contractors rather than employees.\u003c/p>\n\u003cp>Although the number of claims filed with the state represent just a fraction of the more than 1 million gig workers in California, they give a glimpse into what happens when workers turn to the state for help instead of the companies that backed Prop. 22.\u003c/p>\n\u003cp>Workers say in the claims, and in interviews with CalMatters, that companies such as Uber, Lyft and Instacart failed to provide higher wages and health care stipends under the law, and that the companies’ representatives sometimes act confused or take a long time to handle their requests for Prop. 22 benefits. The gig companies have touted the law as something that has boosted pay and benefits, and have said it has helped gig workers hang on to work they can do whenever they want.\u003c/p>\n\u003cp>Laura Robinson is among the workers who have had to aggressively pursue what they believe they’re owed under the law. For the past year, she has filed claims with the state and fought two different gig-work companies for different benefits promised under Prop. 22. \u003c/p>\n\u003cfigure id=\"attachment_12003065\" class=\"wp-caption alignright\" style=\"max-width: 600px\">\u003cimg loading=\"lazy\" decoding=\"async\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/09/052024_Laura-Robinson_ZS_CM_09-1-800x1200.jpg\" alt=\"\" width=\"600\" height=\"1000\" class=\"size-medium wp-image-12003065\">\u003cfigcaption class=\"wp-caption-text\">Laura Robinson in her home in Irvine on May 20, 2024. Robinson, who was in a car accident last year while working for Instacart, was recently informed she will receive occupational accident insurance after months of effort. \u003ccite>(Laura Robinson in her home in Irvine on May 20, 2024. Robinson, who was in a car accident last year while working for Instacart, was recently informed she will receive occupational accident insurance after months of effort. Photo by Zaydee Sanchez/CalMatters)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp> She was making a delivery for Instacart a year ago, she said, when a driver making a U-turn hit her, totaling her car. Now, she said, she has lingering back pain, and has only been able to make a total of a few deliveries over the past several months.\u003c/p>\n\u003cp>Robinson, who lives in Irvine, tried to get Instacart to retroactively provide her with occupational accident insurance as required under Prop. 22.\u003c/p>\n\u003cp>When she first contacted Instacart about the collision, “four or five different (representatives) told me on chat ‘we don’t provide insurance,’ but I told them this is California,” Robinson said. “Finally someone said ‘oh yeah, I know what you’re talking about.’ ” Robinson had some difficulties documenting the accident, because, she said, the responding Torrance Police Department officer rode away on his motorcycle without writing a report. But after about seven months, she finally heard back from Zurich, Instacart’s insurance provider. She received a lump sum, and monthly payments for the time that she has been largely unable to work, according to bank statements and emails from Zurich to her, which she shared with CalMatters.\u003c/p>\n\u003cp>Instacart spokesperson Charlotte Healow said all the company’s shopper support agents should know about “shopper injury protection” and that there is information in the app about how to go about filing claims. But Robinson showed CalMatters several screenshots of her chats with support agents who either thought she was asking about health insurance or who told her someone would email her back about her situation — which eventually happened, though it took a few tries.\u003c/p>\n\u003cp>Robinson said she had also struggled to get a smaller gig platform, food delivery app Curri, to comply with the law. Under Prop. 22, ride-hailing and delivery gig companies are supposed to pay her 120% of minimum wage for the time she spends driving, making up for any shortfall in the pay she receives, but Curri had not done so, she said. Not knowing where to turn, she asked a few different state agencies for help, including the attorney general’s office. She even lodged a complaint with the Federal Motor Carrier Safety Administration’s National Consumer Complaint Database. After several months, the Industrial Relations Department scheduled a hearing for her case for Aug. 29. Last week, the department told her the company decided to settle and pay her what it owed, according to emails and a release she signed that she shared with CalMatters. Curri’s marketing director referred CalMatters to the company’s legal department, which did not return three emailed requests for comment.\u003c/p>\n\u003cp>Robinson saw the upside of Prop. 22 after it passed. She liked being able to continue setting her own hours and saw a bump in her earnings delivering for Grubhub due to the law. But she is now frustrated about how tough it was to figure out who’s supposed to be upholding it.\u003c/p>\n\u003cp>“It’s not helpful if it’s not enforced or applied,” she said. \u003c/p>\n\u003cp>Robinson said the deputy labor commissioner she was in touch with throughout the process of pursuing her claim against Curri told her last week that because Prop. 22 was upheld by the state Supreme Court — effectively ensuring gig workers cannot be considered employees — the department would no longer be handling similar cases because it does not have jurisdiction over independent contractors.\u003c/p>\n\u003ch2>What gig workers are complaining about\u003c/h2>\n\u003cp>The Prop. 22-related wage claims reviewed by CalMatters were part of a larger set of nearly 200 claims that gig workers filed with the Industrial Relations Department since the law took effect in December 2020. Citing the California Public Records Act, CalMatters sought all wage claims in that timeframe involving gig companies, but the state did not provide any claims against DoorDash, which is one of the biggest of the app-based gig companies. A department spokesperson could not explain why.\u003c/p>\n\u003cp>Most of the claimants sought delayed or unpaid wages, including adjustments owed under Prop. 22. Others sought health care stipends required under the gig-work law, and one driver said he sought occupational accident insurance but did not receive it.\u003c/p>\n\u003cp>The claims also shed light on the mechanics of how app companies are allegedly withholding wages. In them, some gig workers claimed that they were deactivated — kicked off or fired by the app — before receiving all their wages. \u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>The records also indicate the state had trouble holding app companies to account in a timely fashion. In emails about the claims, some workers frequently asked for updates about their cases and complained about limited communications from the state. This prompted one supervisor in the Industrial Relations Department’s San Francisco office to \u003ca href=\"https://calmatters.org/wp-content/uploads/2024/08/CM-1006930-PRA-HQ-46848.pdf\">respond by email\u003c/a> on May 30, 2024, seemingly noting that gig workers’ complaints were just a fraction of the array of worker complaints the state fields: “I am working with 40% staff shortage. There are over 3,000 cases, most of which are older than yours, and only seven people (total) to handle them.” The department did not respond to requests for comment on whether this shortfall persists.\u003c/p>\n\u003cp>Monetary wage claims ranged from about $2 to nearly $420,000. Most — 54% — were against ride-hailing and delivery giant Uber and 25% were against its rides competitor Lyft. There were 17 claims against grocery-delivery app maker Instacart, seven against food-delivery platform Grubhub, four against Target-owned delivery service Shipt and three against UPS-owned delivery service Roadie.\u003c/p>\n\u003cp>The Industrial Relations Department has long tried to resolve gig workers’ wage disputes. The labor commissioner, who heads the department’s Labor Standards Enforcement Division, still has pending \u003ca href=\"https://www.dir.ca.gov/dlse/Lawsuits-Uber-Lyft.html\">wage-theft lawsuits\u003c/a> against Uber and Lyft that it filed in 2020 on behalf of about 5,000 workers with wage claims going back to 2017.\u003c/p>\n\u003cp>Those cases predate Prop. 22, originating during a period when gig workers were misclassified and should have been considered employees under California law, the labor commissioner argues in the wage-theft suits. After Prop. 22 passed, opponents challenged it and the case ended up before the California Supreme Court, which upheld the law in July, effectively affirming that drivers are independent contractors, not employees. A department spokesperson, Peter Melton, said the ruling means the department can no longer handle claims about missing wage adjustments under the earnings guarantee, unpaid health care stipends or other aspects of the law.\u003c/p>\n\u003cp>Department representatives made similar statements to workers even before Prop. 22 was upheld, the claims records show. An email response, dated March 26, 2024, from the department to an Uber driver \u003ca href=\"https://calmatters.org/wp-content/uploads/2024/08/CM-1007106-PRA-HQ-46848.pdf\">stated\u003c/a>: “The Division of Labor Standards Enforcement enforces employment law. We cannot enforce Prop 22 earnings because they aren’t ‘wages’ earned by ‘employees’.”\u003c/p>\n\u003cp>This echoes the position lawyers for Uber and Lyft took in some of the records when responding to wage claims. They asked the state to dismiss such claims, writing in \u003ca href=\"https://calmatters.org/wp-content/uploads/2024/08/CM-1003300-PRA-HQ-46848.pdf\">one email\u003c/a>: “As of December 16, 2020, drivers using Lyft’s platform are considered independent contractors by statute and, thus, cannot seek relief under the Labor Code.” \u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>Now that the department has disavowed responsibility for Prop. 22 claims, the question remains: Who will enforce the law?\u003c/p>\n\u003cp>Scott Kronland, the attorney for Service Employees International Union California who unsuccessfully argued before the state Supreme Court that it should throw out Prop. 22, told CalMatters: “I’ve also heard from drivers that they’re not getting the things they’re promised by Prop. 22.”\u003c/p>\n\u003cp>Kronland said their recourse, after the ruling, is to press local prosecutors or the attorney general, who have the ability to hold companies liable for unlawful business practices under the state’s Unfair Competition Law. Still, he said “enforcement is something the Legislature could clarify.”\u003c/p>\n\u003cp>In an unsigned email response to CalMatters’ questions after the state Supreme Court decision, including whether it planned to pursue Prop.-22-related cases against gig-work companies, the attorney general’s office said gig workers can submit complaints at \u003ca href=\"http://oag.ca.gov/report\">oag.ca.gov/report\u003c/a>. The email added: “Although the Attorney General does not represent individual workers or adjudicate individual complaints by holding administrative hearings like (the Department of Industrial Relations), DOJ brings lawsuits to hold accountable companies that systematically break the law, for example through widespread violations of wage and hour standards. Reports or complaints of employer misconduct are an important part of our work.”\u003c/p>\n\u003cp>When CalMatters previously asked the attorney general’s office for copies of any wage complaints it had received from gig workers thus far, a spokesperson responded that the office was representing the state in its effort to defend \u003ca href=\"https://calmatters.org/economy/2024/05/prop-22-oral-arguments/\">Prop. 22 before the California Supreme Court\u003c/a> — and referred CalMatters back to the Industrial Relations Department.\u003c/p>\n\u003ch3>What gig companies share about Prop. 22’s impact\u003c/h3>\n\u003cp>Gig companies have said that, due in part to the initiative’s earnings guarantee, workers now make more than $30 an hour. But a May study by the UC Berkeley Labor Center found that, for California ride-hailing drivers, average earnings after expenses, not including tips, is about $7.12 an hour, and for delivery workers, $5.93. With tips, drivers’ average hourly earnings are $9.09 an hour, and $13.62 for delivery workers, the study found.\u003c/p>\n\u003cp>To better understand the impact of Prop. 22, CalMatters asked each of the four largest gig companies — Uber, Lyft, DoorDash and Instacart — the following:\u003c/p>\n\u003cul class=\"wp-block-list\">\n\u003cli>How much they have spent on delivering on each of Prop. 22’s four main promises:\n\u003cul class=\"wp-block-list\">\n\u003cli>120% of minimum wage earnings guarantee\u003c/li>\n\u003cli>Health care stipends\u003c/li>\n\u003cli>Occupational accident insurance\u003c/li>\n\u003cli>Accidental death insurance\u003c/li>\n\u003c/ul>\n\u003c/li>\n\u003cli>How many gig workers have received each of the promised benefits.\u003c/li>\n\u003cli>Whether they have passed on costs to consumers, and if so, where they account for those customer fees in their public financial filings.\u003c/li>\n\u003cli>How they handle complaints or issues related to their promises.\u003c/li>\n\u003c/ul>\n\u003cp>Lyft said 85% of California Lyft drivers who have driven for the company since Prop. 22 went into effect have received at least one wage “top up” — the additional money drivers receive under the earnings guarantee — through the end of the fourth quarter of 2023, though spokesperson Shadawn Reddick-Smith would not provide specific numbers of Lyft drivers in the state. None of the other companies would give any information on their delivery of the wage guarantee.\u003c/p>\n\u003cp>Instacart spokesperson Healow said the company has paid out about $40 million in health care subsidies to its delivery workers, which she said number in the tens of thousands in the state. She also said about 11% of California shoppers have become eligible for a health care stipend since Prop. 22 took effect, and that 28% of those eligible shoppers have redeemed their subsidy.\u003c/p>\n\u003cp>To qualify for the health care stipends, workers must work at least 15 hours a week each quarter, and be enrolled in health insurance that is not provided by an employer or the government. Because the gig companies won’t share how many workers have received the stipends, CalMatters asked the state health insurance exchange, Covered California, if it had data that might help shed some light. Seven percent of the 1.6 million people who used Covered California reported doing gig work in a 2023 survey, said a spokesperson for the exchange, Jagdip Dhillon.\u003c/p>\n\u003cp>DoorDash spokesperson Parker Dorrough said that just 11% of eligible couriers used the health care stipend in the fourth quarter of 2023 but that 80% of DoorDash’s delivery workers had health care coverage through another source, such as their full-time job or spouse.\u003c/p>\n\u003cp>None of the other companies would give any information on their delivery of the stipend. Lyft’s Reddick-Smith said 80% of California Lyft drivers already have health care coverage, including 13% who bought their own coverage (this second group is the set of drivers who qualified for the stipend).\u003c/p>\n\u003cfigure id=\"attachment_12003067\" class=\"wp-caption center\" style=\"max-width: 2560px\">\u003cimg loading=\"lazy\" decoding=\"async\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/09/GettyImages-1448862196-1-scaled.jpg\" alt=\"\" width=\"2560\" height=\"1721\" class=\"size-full wp-image-12003067\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/09/GettyImages-1448862196-1-scaled.jpg 2560w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/09/GettyImages-1448862196-1-800x538.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/09/GettyImages-1448862196-1-1020x686.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/09/GettyImages-1448862196-1-160x108.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/09/GettyImages-1448862196-1-1536x1033.jpg 1536w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/09/GettyImages-1448862196-1-2048x1377.jpg 2048w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/09/GettyImages-1448862196-1-1920x1291.jpg 1920w\" sizes=\"(max-width: 2560px) 100vw, 2560px\">\u003cfigcaption class=\"wp-caption-text\">A sign is posted on a car as gig workers with the California Gig Workers Union stage a rally against Proposition 22 outside of the California First Appellate District Court of Appeal on December 13, 2022 in San Francisco, California. \u003ccite>(Justin Sullivan/Getty Images)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>None of the four companies provided the numbers of workers who have used occupational accident or accidental death insurance.\u003c/p>\n\u003cp>None of the companies would disclose how they account for the fees they charge customers for Prop. 22 expenses, nor are the fees included in their publicly available financial filings. Instacart said it does not charge customers for expenses associated with Prop. 22. Lyft said its per-ride service fee includes a 75-cent “California Driver Benefits Fee.” Uber charges customers a “CA Driver Benefits” fee for each ride and delivery in the state and spokesperson Zahid Arab said the company has “invested more than we collected in fees.”\u003c/p>\n\u003cp>Uber published a blog post after CalMatters’ questions, saying it has “invested” more than $1 billion in Prop. 22 benefits. Arab would not break down these benefits further.\u003c/p>\n\u003cp>As for complaints related to the promises, each of the companies said workers should contact support agents, whom they can usually get in touch with in the app; an Instacart spokesperson said workers can make some claims directly in the company’s app.\u003c/p>\n\u003ch3>Seeing little from Prop. 22\u003c/h3>\n\u003cp>Ride-hailing driver Sergio Avedian last year helped raise public awareness of the lack of Prop. 22 enforcement. Specifically, he homed in on one narrow issue: Under the law, gig-work companies were supposed to adjust for inflation each year the reimbursement they pay to drivers for mileage. Avedian said no such adjustment had taken place for two consecutive years. And as a podcaster and contributor to the Rideshare Guy, a popular gig-work blog, he had a high profile. Avedian and a fellow eagle-eyed driver started pestering the state’s treasurer’s office, which had not published the adjusted rates as stipulated under Prop 22. The office eventually did so and, the Los Angeles Times reported, put the state’s gig workers \u003ca href=\"https://www.latimes.com/business/technology/story/2023-06-01/column-uber-david-and-goliath\">on track to get back pay for the mileage expenses\u003c/a> — pay potentially worth hundreds of millions of dollars.\u003c/p>\n\u003cp>Now, a year later, Avedian is curious about gig-company math again. He has asked Uber some of the same questions CalMatters did — including how the company accounts for the driver-benefits fee it adds on to each ride or delivery. The company’s response to him was similar — it provided few specifics.\u003c/p>\n\u003cp>Besides his concern about the issue as a driver, Avedian said “as a consumer who is paying into the Prop. 22 fund on every trip or delivery, I would like to know the accounting of where my money is going.”\u003c/p>\n\u003cp>When the gig companies were campaigning for Prop. 22, they implored voters to “\u003ca href=\"https://www.youtube.com/watch?v=-7QJLgdQaf4\">help create a better path forward for drivers\u003c/a>.”\u003c/p>\n\u003cp>But Avedian and other gig workers in California say their paths have not changed much. Many still complain about low wages, little transparency from the companies and lack of worker protections.\u003c/p>\n\u003cp>Yasha Timenovich said he has worked as a ride-hailing driver for a decade, first with Uber, now with Lyft.\u003c/p>\n\u003cp>“I work 12, 13, 14 hours a day,” said Timenovich, who drives in the Los Angeles area. “But the time I sit and wait at LAX is not accounted for.” He said he has to work long hours to try to make sure he has enough earnings. “We’re not completely independent contractors. We’re not employees. We’re sort of a hybrid model of theirs. We’re pretty much nobody.”\u003c/p>\n\u003cp>He also said he must obtain health insurance through Medi-Cal, California’s health care coverage for low-income residents — which in turn means he doesn’t qualify for the health care stipend. He said every driver he knows “is on Medi-Cal because they can’t afford health insurance. I don’t know anyone who has (the stipend).”\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>Many drivers voted for Prop. 22, he said. But “what we were told was a lie.”\u003c/p>\n\u003cdiv class=\"wp-block-newspack-blocks-homepage-articles cm-manual-eoa-recirc wpnbha show-image image-alignleft ts-3 is-1 is-landscape cm-manual-eoa-recirc has-text-align-left\">\n\u003cdiv data-posts=\"\" data-current-post-id=\"438437\">\u003c/div>\n\u003c/div>\n\n\u003c/div>\u003c/p>",
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"title": "Uber Drivers Rally Outside Company's San José Facility to Protest 'Unfair' Deactivations",
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"content": "\u003cp>People who drive for Uber are demanding the popular ride-hailing app company increase transparency and support over what they call unfair driver “deactivations.”\u003c/p>\n\u003cp>About three dozen people, including drivers as well as advocates and organizers from Gig Workers Rising, rallied outside the Uber Greenlight driver support center in South San José on Tuesday.\u003c/p>\n\u003cp>“You get up, you get ready for work, you go to turn on your app, and you’re completely deactivated from the application,” Marianna Porras, a driver and organizer with Gig Workers Rising, told KQED. “You’re not able to use the platform, and you can’t speak to anybody about it.”\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>Porras and other drivers said being deactivated costs them their livelihoods for days, weeks or months at a time, putting further financial and emotional strain on workers already feeling exploited by the gig economy.\u003c/p>\n\u003cp>The rally on Tuesday was part of a multi-city effort launching a new campaign called \u003ca href=\"https://activaterespect.com/\">Activate Respect\u003c/a>, calling out the company for processes the group wants revamped and rebalanced so drivers are prioritized more equally with customers.\u003c/p>\n\u003cp>It’s one of the latest campaigns by gig workers to demand better treatment, benefits, pay and protections from the giant companies running these markets, as the companies have pushed \u003ca href=\"https://www.kqed.org/news/11987299/california-supreme-court-appears-hesitant-to-overrule-voters-on-controversial-gig-worker-law\">controversial legislation\u003c/a> to avoid spending more on employee overhead.\u003c/p>\n\u003cp>The deactivations occur for a wide variety of reasons, drivers say, including minor customer complaints, which can sometimes be falsely filed by a rider seeking a discount or free ride from the company.\u003c/p>\n\u003cp>A driver could also be deactivated if the application’s facial recognition software isn’t able to match the driver’s face on a given day to their identification document on file.\u003c/p>\n\u003cp>Drivers said one of the biggest issues they face is not being able to get clear information about why they are being deactivated. They often say they receive boilerplate or vague notices.\u003c/p>\n\u003cp>Once deactivated, “it’s next to impossible to speak to a human being who can fix it,” the campaign’s website says.\u003c/p>\n\u003cp>San José City Councilmember Peter Ortiz, who spoke at the rally in support of the drivers, said workers at most jobs have more rights and clearer processes when mistakes are made.\u003c/p>\n\u003cp>“Your boss has a conversation with you. There’s an opportunity to correct performance, there’s an opportunity to provide feedback, right? You’re not just fired out of nowhere,” Ortiz said. “You don’t just wake up, getting ready to make money for your family, to put food on the table, and find out that your job was stolen from you.”\u003c/p>\n\u003cp>He said Uber is “essentially taking advantage of communities of color and immigrants,” including South Americans who often fill driver roles.\u003c/p>\n\u003cp>Uber declined an interview request from KQED on Tuesday, but in an emailed statement, a spokesperson said the company is “fully committed” to improving how it serves drivers and creating a safe and equitable platform.\u003c/p>\n\u003cp>“Over the years, we’ve implemented significant improvements based on driver feedback, including establishing an appeals process for deactivations and safeguarding drivers from false allegations,” the statement said.\u003c/p>\n\u003cp>On a \u003ca href=\"https://www.uber.com/us/en/drive/driver-app/deactivation-review/\">company webpage\u003c/a>, Uber said when deactivations occur, it “will make every effort to be clear, empathetic, and consistent in our communications and specific and transparent about the reasons behind our decision, except where doing so poses a risk to other users.”\u003c/p>\n\u003cp>It also notes that the company endeavors to give advance notice to drivers but that it’s not always possible, and drivers “should have the ability to request a review of any decision that removes access for more than 7 days and can’t be resolved by the driver or delivery person on their own.”\u003c/p>\n\u003cp>[aside label=\"Related Stories\" postID=\"news_11990750,news_11986533,forum_2010101905828\"]Activate Respect’s website said when customers experience problems with the app, Uber prioritizes addressing it, but that’s not always the case for drivers.\u003c/p>\n\u003cp>“While we struggle to get back into our accounts, Uber’s appeal process is confusing and ineffective for most of us,” the site said.\u003c/p>\n\u003cp>Porras said the problems around deactivations are another form of exploitation by Uber and other gig economy companies that, when taken together, make workers who create the company’s wealth feel like they have little control or job security.\u003c/p>\n\u003cp>“We want investigations to be done before the drivers are deactivated,” Porras said. “Give a fair investigation without taking them off the platform before knowing the details of everything that is about the situation.”\u003c/p>\n\u003cp>Dora Manriquez, a driver and leader with Gig Workers Rising, said she came to the rally to stand up for fellow drivers who are afraid to speak up against the company.\u003c/p>\n\u003cp>“Uber has made them believe that they don’t have rights,” Manriquez said. “We do have the rights even though they make us feel powerless. We do have power together, we have power by being united.”\u003c/p>\n\u003cp>\u003c/p>\n",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003cp>People who drive for Uber are demanding the popular ride-hailing app company increase transparency and support over what they call unfair driver “deactivations.”\u003c/p>\n\u003cp>About three dozen people, including drivers as well as advocates and organizers from Gig Workers Rising, rallied outside the Uber Greenlight driver support center in South San José on Tuesday.\u003c/p>\n\u003cp>“You get up, you get ready for work, you go to turn on your app, and you’re completely deactivated from the application,” Marianna Porras, a driver and organizer with Gig Workers Rising, told KQED. “You’re not able to use the platform, and you can’t speak to anybody about it.”\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>Porras and other drivers said being deactivated costs them their livelihoods for days, weeks or months at a time, putting further financial and emotional strain on workers already feeling exploited by the gig economy.\u003c/p>\n\u003cp>The rally on Tuesday was part of a multi-city effort launching a new campaign called \u003ca href=\"https://activaterespect.com/\">Activate Respect\u003c/a>, calling out the company for processes the group wants revamped and rebalanced so drivers are prioritized more equally with customers.\u003c/p>\n\u003cp>It’s one of the latest campaigns by gig workers to demand better treatment, benefits, pay and protections from the giant companies running these markets, as the companies have pushed \u003ca href=\"https://www.kqed.org/news/11987299/california-supreme-court-appears-hesitant-to-overrule-voters-on-controversial-gig-worker-law\">controversial legislation\u003c/a> to avoid spending more on employee overhead.\u003c/p>\n\u003cp>The deactivations occur for a wide variety of reasons, drivers say, including minor customer complaints, which can sometimes be falsely filed by a rider seeking a discount or free ride from the company.\u003c/p>\n\u003cp>A driver could also be deactivated if the application’s facial recognition software isn’t able to match the driver’s face on a given day to their identification document on file.\u003c/p>\n\u003cp>Drivers said one of the biggest issues they face is not being able to get clear information about why they are being deactivated. They often say they receive boilerplate or vague notices.\u003c/p>\n\u003cp>Once deactivated, “it’s next to impossible to speak to a human being who can fix it,” the campaign’s website says.\u003c/p>\n\u003cp>San José City Councilmember Peter Ortiz, who spoke at the rally in support of the drivers, said workers at most jobs have more rights and clearer processes when mistakes are made.\u003c/p>\n\u003cp>“Your boss has a conversation with you. There’s an opportunity to correct performance, there’s an opportunity to provide feedback, right? You’re not just fired out of nowhere,” Ortiz said. “You don’t just wake up, getting ready to make money for your family, to put food on the table, and find out that your job was stolen from you.”\u003c/p>\n\u003cp>He said Uber is “essentially taking advantage of communities of color and immigrants,” including South Americans who often fill driver roles.\u003c/p>\n\u003cp>Uber declined an interview request from KQED on Tuesday, but in an emailed statement, a spokesperson said the company is “fully committed” to improving how it serves drivers and creating a safe and equitable platform.\u003c/p>\n\u003cp>“Over the years, we’ve implemented significant improvements based on driver feedback, including establishing an appeals process for deactivations and safeguarding drivers from false allegations,” the statement said.\u003c/p>\n\u003cp>On a \u003ca href=\"https://www.uber.com/us/en/drive/driver-app/deactivation-review/\">company webpage\u003c/a>, Uber said when deactivations occur, it “will make every effort to be clear, empathetic, and consistent in our communications and specific and transparent about the reasons behind our decision, except where doing so poses a risk to other users.”\u003c/p>\n\u003cp>It also notes that the company endeavors to give advance notice to drivers but that it’s not always possible, and drivers “should have the ability to request a review of any decision that removes access for more than 7 days and can’t be resolved by the driver or delivery person on their own.”\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>Activate Respect’s website said when customers experience problems with the app, Uber prioritizes addressing it, but that’s not always the case for drivers.\u003c/p>\n\u003cp>“While we struggle to get back into our accounts, Uber’s appeal process is confusing and ineffective for most of us,” the site said.\u003c/p>\n\u003cp>Porras said the problems around deactivations are another form of exploitation by Uber and other gig economy companies that, when taken together, make workers who create the company’s wealth feel like they have little control or job security.\u003c/p>\n\u003cp>“We want investigations to be done before the drivers are deactivated,” Porras said. “Give a fair investigation without taking them off the platform before knowing the details of everything that is about the situation.”\u003c/p>\n\u003cp>Dora Manriquez, a driver and leader with Gig Workers Rising, said she came to the rally to stand up for fellow drivers who are afraid to speak up against the company.\u003c/p>\n\u003cp>“Uber has made them believe that they don’t have rights,” Manriquez said. “We do have the rights even though they make us feel powerless. We do have power together, we have power by being united.”\u003c/p>\n\u003cp>\u003c/p>\n\u003c/div>\u003c/p>",
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"slug": "uber-and-lyft-are-fighting-minimum-wage-laws-but-in-this-state-the-drivers-won",
"title": "Uber and Lyft Are Fighting Minimum Wage Laws. But in This State, the Drivers Won",
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"content": "\u003cp>In a windowless room, Uber driver Farhan Badel took the podium in front of a committee of Minnesota state legislators in early May. As Badel leaned into the microphone and started speaking, the room quieted. Testifying before lawmakers was something he’d done nearly a dozen times before, but he says this time felt like his last chance.\u003c/p>\n\u003cp>“We’ve been fighting for two long years,” Badel stated, referencing ride-hail drivers’ battle to get a minimum wage law passed in the state. He said his message to lawmakers was this: “Uber and Lyft, especially Uber, notorious for their shady lobbying … should not be allowed to dictate what becomes law in this state.”\u003c/p>\n\u003cp>The lobbying Badel referenced is part of a playbook Uber and Lyft have used in cities across the country to curb minimum wage laws for drivers. The San Francisco-based companies have barraged lawmakers with emails, sent warning messages to riders and drivers, and threatened to vacate states if they were forced to pay minimum wage.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>In Minnesota, the campaign was particularly aggressive. Interviews with drivers and lawmakers, along with internal emails and documents obtained by NPR, show that Minnesota was the target of an intense operation.\u003c/p>\n\u003cp>That hearing where Badel testified was the latest twist in a whiplash series of events. Over the last two years, ride-hail drivers had organized and grown into a more than 1,300-member group that marched at City Hall, met with lawmakers and brought national attention to their plight.\u003c/p>\n\u003cp>They had seen wins and losses in dizzying succession: Three separate bills mandating minimum wage for ride-hail drivers passed at the state and city levels, only to get unexpectedly vetoed by Gov. Tim Walz or Minneapolis Mayor Jacob Frey. The drivers say it felt to them like a true David and Goliath situation, pitting them against multibillion-dollar corporations that seemed to hold far more power.\u003c/p>\n\u003cfigure id=\"attachment_11990764\" class=\"wp-caption alignnone\" style=\"max-width: 1700px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-11990764\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/06/npr.brightspotcdn-1-copy.jpg\" alt=\"\" width=\"1700\" height=\"1134\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/06/npr.brightspotcdn-1-copy.jpg 1700w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/06/npr.brightspotcdn-1-copy-800x534.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/06/npr.brightspotcdn-1-copy-1020x680.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/06/npr.brightspotcdn-1-copy-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/06/npr.brightspotcdn-1-copy-1536x1025.jpg 1536w\" sizes=\"(max-width: 1700px) 100vw, 1700px\">\u003cfigcaption class=\"wp-caption-text\">Farhan Badel, an Uber/Lyft driver and MULDA organizer, in Apple Valley, Minn., on May 25. \u003ccite>(Jenn Ackerman for NPR)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>This spring it reached a boiling point. After gains by the drivers, Uber and Lyft stepped up their lobbying campaign and \u003ca href=\"https://www.npr.org/2024/03/15/1238885721/uber-lyft-minneapolis-minimum-wage-law\">threatened to pull out of Minneapolis\u003c/a>.\u003c/p>\n\u003cp>“This is part of their corporate playbook,” says Laura Padin, who \u003ca href=\"https://www.datocms-assets.com/64990/1714149807-the-bullys-playbook-april-2024.pdf\">studies lobbying in the gig economy (PDF)\u003c/a> at the National Employment Law Project, a labor rights advocacy organization. “The fact that they can issue threats and say ‘We’re going to leave if you treat us like everyone else’ is a big problem.”\u003c/p>\n\u003cp>Spokespeople for Uber and Lyft say the proposed minimum wage would have left the companies unable to sustain their businesses in the state. Uber says it would have made Minnesota “one of the most expensive markets in the country,” and Lyft says it would have made “prices rise so much that we would have seen a 51% decrease in ride requests.”\u003c/p>\n\u003cp>Walz and Frey, both labor-friendly Democrats, had been adamant that they wanted ride-hail drivers to make a livable wage. They also took the companies, and their warnings, seriously.\u003c/p>\n\u003cp>“From the very beginning, I had two primary goals,” Frey told NPR in an interview. “To get a very significant pay increase for drivers and to keep this very important rideshare service, including Uber and Lyft, in our city.”\u003c/p>\n\u003cp>Similar scenarios have played out in New York and Seattle, which ultimately passed city minimum wage laws. But every state law governing driver pay and protections that has been crafted to date has included provisions backed by Uber and Lyft — through their \u003ca href=\"https://www.nybooks.com/online/2024/05/09/inside-uber-political-machine/?utm_source=Twitter&utm_medium=social&utm_campaign=2024-05-09_Wells-Uber-1\">lobbying and public campaigns\u003c/a>. For example, in California, the companies \u003ca href=\"https://cal-access.sos.ca.gov/Campaign/Committees/Detail.aspx?id=1422181&session=2019&view=received\">spent a combined $108.5 million\u003c/a> on a successful \u003ca href=\"https://www.npr.org/2020/11/05/931561150/california-voters-give-uber-lyft-a-win-but-some-drivers-arent-so-sure\">ballot measure campaign\u003c/a> to exempt them from a state labor law. Another statewide battle happened in Washington, and one is underway in Massachusetts.\u003c/p>\n\u003cp>But in Minnesota, something wholly unexpected happened last month — the drivers won.\u003c/p>\n\u003ch2>‘The worst I’ve seen in eight years’\u003c/h2>\n\u003cp>It all started in a small coffee shop in Minneapolis. In the summer of 2022, ride-hail driver Eid Ali gathered with about 20 Uber and Lyft drivers to talk about low pay, safety concerns and other issues that come with the job. Ali is a father of five and the sole provider for his family. Before he started driving for Uber and Lyft in 2014, Ali was a taxi driver and had done some organizing. He says this helped him and the other drivers come up with a game plan.\u003c/p>\n\u003cp>The first step was to recruit more drivers. Ali and the others went to shopping malls and airport parking lots to speak with drivers. They also went to mosques — the majority of ride-hail drivers in Minneapolis are immigrants, according to \u003ca href=\"https://www.dli.mn.gov/sites/default/files/pdf/TNC_driver_earnings_analysis_pay_standard_options_report_030824.pdf\">state data (PDF)\u003c/a>, with many from East Africa, especially Somalia.\u003c/p>\n\u003cp>The drivers coalesced in a group called Minnesota Uber/Lyft Drivers Association, or MULDA, and Ali became the president.\u003c/p>\n\u003cfigure id=\"attachment_11990765\" class=\"wp-caption alignnone\" style=\"max-width: 1700px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-11990765\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/06/npr.brightspotcdn2-copy.jpg\" alt=\"\" width=\"1700\" height=\"1134\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/06/npr.brightspotcdn2-copy.jpg 1700w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/06/npr.brightspotcdn2-copy-800x534.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/06/npr.brightspotcdn2-copy-1020x680.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/06/npr.brightspotcdn2-copy-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/06/npr.brightspotcdn2-copy-1536x1025.jpg 1536w\" sizes=\"(max-width: 1700px) 100vw, 1700px\">\u003cfigcaption class=\"wp-caption-text\">Eid Ali, president of Minnesota Uber/Lyft Drivers Association (MULDA), at the organization’s offices in Bloomington, Minn., on May 25. \u003ccite>(Jenn Ackerman for NPR)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>He says drivers reached out to him constantly about not being able to make ends meet. “Family folks raising kids, who depend on this income, are coming to me every day and telling me ‘I don’t know what to do,’” Ali says. “I was thinking that if I don’t do anything, if I don’t fight a few more days or maybe a few more weeks, who’s going to do that?”\u003c/p>\n\u003cp>Uber and Lyft categorize drivers as independent contractors rather than employees. This means drivers pay their own expenses such as gas, car maintenance and cellphones, and they don’t have employee benefits, including health insurance, sick days and workers’ compensation.\u003c/p>\n\u003cp>Low pay is the top problem, drivers say, as their earnings have steadily shrunk and become harder to predict. In 2022, both Uber and Lyft \u003ca href=\"https://themarkup.org/working-for-an-algorithm/2022/03/01/secretive-algorithm-will-now-determine-uber-driver-pay-in-many-cities\">switched how they paid drivers\u003c/a>, going from a time-and-mileage calculation to an opaque algorithm. Uber and Lyft say the software helps drivers pick and choose trips, but drivers say since that change they’ve seen the companies take a bigger cut, while they’ve gotten less.\u003c/p>\n\u003cp>Sergio Avedian, a longtime ride-hail driver in Los Angeles and senior contributor to the popular blog the \u003ca href=\"https://therideshareguy.com/\">Rideshare Guy\u003c/a>, says thousands of drivers regularly send him their pay stubs. “This is the worst I’ve seen in eight years,” he says, estimating he often earns less than minimum wage after expenses. “But people are driving, they’re desperate.”\u003c/p>\n\u003cp>In the Twin Cities metro area, where 95% of all of Minnesota’s ride-hail trips happen, the median take-home wage for drivers is $13.63 per hour, according to a \u003ca href=\"https://www.dli.mn.gov/sites/default/files/pdf/TNC_driver_earnings_analysis_pay_standard_options_report_030824.pdf\">report (PDF)\u003c/a> by the Minnesota Department of Labor and Industry. That’s below the minimum wage for large businesses in St. Paul ($15) and Minneapolis ($15.57).\u003c/p>\n\u003cp>Uber’s spokesperson calls this report “\u003ca href=\"https://uberpubpolicy.medium.com/excessive-rates-and-their-negative-effects-a-review-of-minnesotas-proposed-pay-standard-9747c14d0254\">flawed\u003c/a>.” Lyft didn’t respond to questions about driver pay.\u003c/p>\n\u003cp>Uber and Lyft have shaped minimum wage laws in their favor in other states. In Washington, for example, after Seattle passed a minimum wage for ride-hail drivers, the two companies \u003ca href=\"https://themarkup.org/news/2022/03/04/bill-in-washington-state-would-be-first-to-bar-uber-and-lyft-drivers-from-being-classified-as-employees\">lobbied legislators\u003c/a> to pass a state law. That law gives drivers a minimum pay floor but also grants a key concession to the companies: ensuring that the drivers remain classified as independent contractors, which exempts the companies from providing customary worker benefits.\u003c/p>\n\u003cfigure id=\"attachment_11990766\" class=\"wp-caption alignnone\" style=\"max-width: 1700px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-11990766\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/06/npr.brightspotcdn3-copy.jpg\" alt=\"\" width=\"1700\" height=\"1134\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/06/npr.brightspotcdn3-copy.jpg 1700w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/06/npr.brightspotcdn3-copy-800x534.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/06/npr.brightspotcdn3-copy-1020x680.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/06/npr.brightspotcdn3-copy-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/06/npr.brightspotcdn3-copy-1536x1025.jpg 1536w\" sizes=\"(max-width: 1700px) 100vw, 1700px\">\u003cfigcaption class=\"wp-caption-text\">Symbols for Uber and Lyft adorn Farhan Badel’s vehicle in Apple Valley, Minn. \u003ccite>(Jenn Ackerman for NPR)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>By the fall of 2022, hundreds of drivers had joined MULDA, with the campaign crystallizing around the push for a minimum wage. That October, they \u003ca href=\"https://minnesotareformer.com/2022/10/20/uber-and-lyft-drivers-press-lawmakers-to-address-long-standing-labor-complaints/\">held their first press conference\u003c/a> at the Minnesota state Capitol. “Drivers are at a breaking point,” Ali announced, alongside state lawmakers that day. From there, their cause quickly picked up steam.\u003c/p>\n\u003cp>By March 2023, state legislators had introduced a \u003ca href=\"https://www.revisor.mn.gov/bills/bill.php?b=House&f=HF2369&ssn=0&y=2023\">bill\u003c/a> that set out minimum pay and other protections for ride-hail drivers. It swiftly passed the House and Senate and landed on Walz’s desk in late May 2023.\u003c/p>\n\u003cp>All signs pointed to Walz signing the bill, Badel says. The drivers got ready to celebrate a victory.\u003c/p>\n\u003cp>“Insiders told us to come to the state Capitol the day when they signed all these bills,” Badel says. “They told us to come there dressed well — you know, look presentable, look happy. So, we were getting all these checkmarks that he was going to sign the bill.”\u003c/p>\n\u003ch2>A lobbying blitz\u003c/h2>\n\u003cp>What Badel and Ali didn’t know was that Uber and Lyft’s lobbyists were hard at work behind the scenes.\u003c/p>\n\u003cp>Days before the governor received the bill, the companies’ lobbyists sent a slew of emails to his staffers and colleagues, according to public records obtained by NPR. Those included “talking points and numbers” that said rider fares would skyrocket if the bill passed. In Minneapolis, they said fares would go up 70%, without citing specific data.\u003c/p>\n\u003cp>\u003c!-- iframe plugin v.4.3 wordpress.org/plugins/iframe/ -->\u003cbr>\n\u003ciframe loading=\"lazy\" src=\"https://apps.npr.org/dailygraphics/graphics/lyft-uber-playbook-20240610/aiTimeline.html?initialWidth=840&childId=responsive-embed-lyft-uber-playbook-20240610-aiTimeline&parentTitle=Uber%20and%20Lyft%20use%20lobbying%20to%20fight%20minimum%20wage%20law%20in%20Minnesota%20%3A%20NPR&parentUrl=https%3A%2F%2Fwww.npr.org%2F2024%2F06%2F17%2Fnx-s1-4942958%2Fuber-minimum-wage-minnesota-lyft-lobbying\" width=\"800\" height=\"2200\" scrolling=\"yes\" class=\"iframe-class\" frameborder=\"0\">\u003c/iframe>\u003c/p>\n\u003cp>Brent Kent, a registered lobbyist for Lyft and the company’s director of public policy, sent a letter to Minnesota’s Senate president saying the bill would have a “catastrophic impact” and create “transportation deserts.” Rides in Minneapolis would go from $17 to $54, he said, also not citing specific data for that statistic.\u003c/p>\n\u003cp>As signing day neared, the lobbyists ramped up their efforts. They requested phone calls between Walz and the CEOs of both Uber and Lyft. At one point, Uber lobbyist Joel Carlson emailed the governor’s legislative assistant asking for an alternative email for the office, because he said he had a lot of people wanting to write in with opposition to the bill and didn’t want to “email bomb” her.\u003c/p>\n\u003cp>Carlson also fired off “veto request” letters he collected from 11 community groups — business and hospitality associations as well as organizations that work with people with disabilities, the elderly and domestic violence survivors. At least half of those groups have partnered with Uber or Lyft, but that wasn’t disclosed in their letters.\u003c/p>\n\u003cp>Uber’s spokesperson says it “engaged many organizations and local stakeholders to ensure they understood the impact of the legislation” and “many decided to express their concerns.” The spokesperson also confirmed that Uber CEO Dara Khosrowshahi had spoken with the governor.\u003c/p>\n\u003cfigure id=\"attachment_11990767\" class=\"wp-caption alignnone\" style=\"max-width: 1700px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-11990767\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/06/npr.brightspotcdn4-copy.jpg\" alt=\"\" width=\"1700\" height=\"1134\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/06/npr.brightspotcdn4-copy.jpg 1700w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/06/npr.brightspotcdn4-copy-800x534.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/06/npr.brightspotcdn4-copy-1020x680.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/06/npr.brightspotcdn4-copy-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/06/npr.brightspotcdn4-copy-1536x1025.jpg 1536w\" sizes=\"(max-width: 1700px) 100vw, 1700px\">\u003cfigcaption class=\"wp-caption-text\">Matthew McGlory, a rideshare driver and active member of MULDA, in downtown Minneapolis. \u003ccite>(Jenn Ackerman for NPR)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>“We urged the governor to veto the bill publicly, as well, via issued statements and in emails to riders and drivers,” the spokesperson says.\u003c/p>\n\u003cp>Lyft didn’t respond to questions about its involvement with the letters from community groups or conversations between its CEO and the governor.\u003c/p>\n\u003cp>Days before the anticipated signing, the companies rolled out a tactic they’d used in California, New York, Texas and other states: They \u003ca href=\"https://www.cbsnews.com/news/uber-minnesota-rideshare-driver-bill-veto-tim-walz/\">threatened to leave the state\u003c/a> if the bill was signed into law.\u003c/p>\n\u003cp>By May 25, 2023, Ali says he and the other drivers were anxious about the outcome. They gathered in front of Walz’s office chanting, “Governor sign the bill!”\u003c/p>\n\u003cp>That afternoon, Walz issued his \u003ca href=\"https://www.house.mn.gov/NewLaws/story/2023/5502\">first and only veto\u003c/a> in four years as governor.\u003c/p>\n\u003cp>His veto letter started off saying the minimum wage bill “could make Minnesota one of the most expensive states in the country for rideshare.” It cited the need to maintain ride-hail services in the state and also referenced the letters from community groups.\u003c/p>\n\u003cp>A spokeswoman for Walz says that alongside the veto, the governor \u003ca href=\"https://mn.gov/governor/assets/EO%2023-07%20TNC_tcm1055-579270.pdf\">formed a task force (PDF)\u003c/a> to study the issue. She pointed NPR to a \u003ca href=\"https://mn.gov/governor/newsroom/press-releases/#/detail/appId/1/id/579275\">press release\u003c/a> where he said, “Rideshare drivers deserve fair wages and safe working conditions … This is not the right bill to achieve these goals.”\u003c/p>\n\u003cp>Ali says it was a big surprise and a major blow for MULDA. “That was my worst nightmare, because I didn’t know what to say to those drivers.”\u003c/p>\n\u003ch2>‘You’re our last resort’\u003c/h2>\n\u003cp>As the state bill made its way through the Legislature, the MULDA drivers were also simultaneously working with city council members in Minneapolis. After the governor’s veto, the drivers reorganized and went all in at the local level — becoming ever-present at City Hall.\u003c/p>\n\u003cp>“They came to City Hall many, many times, saying: ‘Government officials, you’re our last resort,’” says Robin Wonsley, the Minneapolis council member for Ward 2.\u003c/p>\n\u003cp>“The makeup of the workforce for the rideshare companies is predominantly Black, predominantly immigrant and also predominantly low income,” she added. “And many of these drivers, or a disproportionate number of these drivers, are \u003ca href=\"https://www.dli.mn.gov/sites/default/files/pdf/TNC_driver_earnings_analysis_pay_standard_options_report_030824.pdf\">actually on public assistance (PDF)\u003c/a>.”\u003c/p>\n\u003cfigure id=\"attachment_11990768\" class=\"wp-caption alignnone\" style=\"max-width: 1700px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-11990768\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/06/npr.brightspotcdn5-copy.jpg\" alt=\"\" width=\"1700\" height=\"1134\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/06/npr.brightspotcdn5-copy.jpg 1700w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/06/npr.brightspotcdn5-copy-800x534.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/06/npr.brightspotcdn5-copy-1020x680.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/06/npr.brightspotcdn5-copy-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/06/npr.brightspotcdn5-copy-1536x1025.jpg 1536w\" sizes=\"(max-width: 1700px) 100vw, 1700px\">\u003cfigcaption class=\"wp-caption-text\">Robin Wonsley, Minneapolis council member for Ward 2, outside City Hall in Bloomington, Minn., on May 26. Wonsley and colleagues worked on a city ordinance to give ride-hail drivers a minimum wage in Minneapolis. \u003ccite>(Jenn Ackerman for NPR)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>She joined fellow council members Jamal Osman, who’d introduced her to MULDA, and Jason Chavez to work on a city ordinance. They reached out to economists and experts to come up with a calculation that would be equivalent to the city’s minimum wage. Uber and Lyft only pay drivers when they’re giving rides and not when they’re waiting for a passenger, so a straight hourly wage wouldn’t work. The \u003ca href=\"https://lims.minneapolismn.gov/Download/MetaData/31233/2023-052_Id_31233.pdf\">ordinance (PDF)\u003c/a> they introduced mandated that drivers be paid $1.40 per mile and 51¢ per minute.\u003c/p>\n\u003cp>It \u003ca href=\"https://www.mprnews.org/story/2023/08/17/minneapolis-approves-measure-to-boost-pay-for-uber-lyft-drivers\">passed the council\u003c/a> in August 2023 by a 7–5 vote. But behind the scenes, the companies’ lobbyists were leaning hard on Frey.\u003c/p>\n\u003cp>As with the governor, Uber and Lyft’s lobbyists targeted the mayor, according to internal emails obtained by NPR through public records requests. Lyft’s Kent reached out to staffers saying the company had “grave concerns.” He sent the mayor and council members an opposition letter from a Lyft executive that had one sentence bolded and underlined: “Should this proposal become law, Lyft will be forced to cease operations.”\u003c/p>\n\u003cp>Meanwhile, Uber’s Carlson called the ordinance “problematic.” On Aug. 21, Carlson emailed a senior aide at City Hall, saying he had spoken with the mayor.\u003c/p>\n\u003cp>“Uber understands the importance and optics to provide a thoughtful response to the council’s vote and have offered to him the opportunity to announce the following if he chooses,” the email reads. Carlson said the mayor could announce that Uber pledges to give drivers a minimum wage and a $5 minimum on all trips. He sent suggested language for the mayor’s announcement.\u003c/p>\n\u003cfigure id=\"attachment_11990769\" class=\"wp-caption alignnone\" style=\"max-width: 1700px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-11990769\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/06/npr.brightspotcdn6-copy.jpg\" alt=\"\" width=\"1700\" height=\"1134\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/06/npr.brightspotcdn6-copy.jpg 1700w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/06/npr.brightspotcdn6-copy-800x534.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/06/npr.brightspotcdn6-copy-1020x680.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/06/npr.brightspotcdn6-copy-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/06/npr.brightspotcdn6-copy-1536x1025.jpg 1536w\" sizes=\"(max-width: 1700px) 100vw, 1700px\">\u003cfigcaption class=\"wp-caption-text\">In Minneapolis, the median take-home wage for ride-hail drivers is nearly $2 less than the minimum wage. \u003ccite>(Jenn Ackerman for NPR)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>The next day, Frey \u003ca href=\"https://www.mprnews.org/story/2023/08/22/minneapolis-mayor-jacob-frey-vetoes-rideshare-bill\">vetoed the ordinance\u003c/a>. In his \u003ca href=\"https://lims.minneapolismn.gov/Download/FileV2/32370/2023_052-Veto-Letter.pdf\">veto letter (PDF)\u003c/a>, he said he’d work on another ordinance that included all stakeholders. The mayor also wrote that he was “pleased to share” that he secured a commitment from Uber to provide drivers a minimum wage and a $5 minimum per ride.\u003c/p>\n\u003cp>Uber’s spokesperson says the minimum wage guarantee “was not part of any negotiations.” A spokesperson for Frey says the commitment from Uber “was not in exchange for a veto.”\u003c/p>\n\u003cp>Wonsley says she was outraged.\u003c/p>\n\u003cp>“Why are we having city leaders now supporting a multibillion-dollar corporation and having an exemption from a city policy that hundreds of small businesses have been in compliance with?” she says, referring to the city’s minimum wage law. “And then he announced a nonbinding agreement with Uber, saying, ‘Look, we don’t need to change nothing, the company has made a commitment, a symbolic commitment to pay drivers more.’ ”\u003c/p>\n\u003cp>“We were like ‘Wait, what?’ ” Wonsley adds. “That makes absolutely no sense.”\u003c/p>\n\u003cp>Frey’s spokesperson says the commitment from Uber “was never intended to be a permanent solution.”\u003c/p>\n\u003ch2>Public pressure campaign\u003c/h2>\n\u003cp>The mayor’s veto, coming after the governor’s veto, could have been the end for MULDA drivers’ quest to get a minimum wage law. In other states that went through similar scenarios, such setbacks have taken the wind out of organizing efforts. But Ali and Badel say they came too close to give up. And council member Wonsley says she wasn’t ready to back down either.\u003c/p>\n\u003cp>She and her colleagues introduced two more ordinances in October 2023. One focused on minimum wage, the other on worker protections.\u003c/p>\n\u003cp>Less than six months later, the council passed the new minimum wage \u003ca href=\"https://lims.minneapolismn.gov/Download/FileV2/34129/Transportation-Rideshare-Compensation-Ordinance.pdf\">ordinance (PDF)\u003c/a> by a 9–4 vote. The next day, once again, Frey vetoed the ordinance.\u003c/p>\n\u003cp>“I asked the City Council to wait one day,” says Frey, until after the release of the statewide report on driver earnings. “Both times I vetoed it because it wasn’t supported by the data. And so, we should be listening to the data.”\u003c/p>\n\u003cp>This time, however, the council had enough votes to \u003ca href=\"https://www.mprnews.org/story/2024/03/14/minneapolis-city-council-overrides-freys-veto-on-ordinance-boosting-rideshare-driver-pay\">override his veto\u003c/a>.\u003c/p>\n\u003cp>With this go-round, Uber and Lyft kicked their pressure campaign up a notch. Instead of mostly working with lawmakers behind closed doors, the companies brought their lobbying to the public.\u003c/p>\n\u003cp>“It’s been a full-court press campaign,” Wonsley says. “Every single day there are several articles, interviews in the press, basically demonizing our actions and creating a lot of confusion for the public around what our policy actually accomplished.”\u003c/p>\n\u003cp>The day after the veto override, Uber and Lyft \u003ca href=\"https://www.npr.org/2024/03/15/1238885721/uber-lyft-minneapolis-minimum-wage-law\">announced they were leaving Minneapolis\u003c/a> as soon as the ordinance went into effect. It was around this time that Matthew McGlory, a MULDA member and longtime Uber and Lyft driver, started getting in-app messages and emails from the companies.\u003c/p>\n\u003cfigure id=\"attachment_11990770\" class=\"wp-caption alignnone\" style=\"max-width: 1700px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-11990770\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/06/npr.brightspotcdn7-copy.jpg\" alt=\"\" width=\"1700\" height=\"1134\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/06/npr.brightspotcdn7-copy.jpg 1700w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/06/npr.brightspotcdn7-copy-800x534.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/06/npr.brightspotcdn7-copy-1020x680.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/06/npr.brightspotcdn7-copy-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/06/npr.brightspotcdn7-copy-1536x1025.jpg 1536w\" sizes=\"(max-width: 1700px) 100vw, 1700px\">\u003cfigcaption class=\"wp-caption-text\">Matthew McGlory, a rideshare driver and active member of MULDA, in downtown Minneapolis on May 26. McGlory says drivers in other states have been watching Minnesota, waiting to see what happened. \u003ccite>(Jenn Ackerman for NPR)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>“We know that this decision will have a huge negative effect,” a message from Uber read. “It will put thousands of drivers — like you — out of work.” Uber provided a link to email lawmakers urging them to pass statewide legislation that could preempt the city ordinance and be more favorable to the companies.\u003c/p>\n\u003cp>Lyft, meanwhile, sent an email to its riders saying the ordinance would make rides “unaffordable” for the majority of residents. Lyft’s spokesperson didn’t respond to questions about the in-app messages. Uber’s spokesperson says, “The message speaks for itself.”\u003c/p>\n\u003cp>There was also a flurry of activity in the local news. Uber put an online ad in the \u003cem>Star Tribune\u003c/em> saying Minneapolis was “forcing” it to leave and offered a button to click to “save our rides.” Dan Meyers, a director at disability advocacy group Rise, \u003ca href=\"https://www.startribune.com/minneapolis-rideshare-driver-pay-proposal-looks-at-only-one-side-of-equation/600348209/\">wrote an op-ed\u003c/a> saying the ordinance would be “devastating to the disability community.” Lyft and Rise are \u003ca href=\"https://rise.org/12858-2/\">longtime partners\u003c/a>, which wasn’t disclosed in the op-ed.\u003c/p>\n\u003cp>A spokesperson for Rise says, “Our work with Lyft is well-known among our peers and partners.” Lyft didn’t respond to questions about any possible involvement with the op-ed.\u003c/p>\n\u003cp>Even with the ordinance set to go into effect in Minneapolis, MULDA drivers say they were still nervous. A statewide bill could preempt the city ordinance and undercut their pay. It was hard to tell which way it would go.\u003c/p>\n\u003ch2>‘No one else has been able to do this in the country’\u003c/h2>\n\u003cp>The same day Farhan Badel took the podium in early May pleading with state lawmakers to not let the ride-hail companies dictate the law, Uber’s Carlson also spoke. They were discussing a compromise state bill that would preempt the Minneapolis ordinance — it offered drivers a rate of $1.27 per mile and 49¢ per minute. Carlson told the lawmakers this wouldn’t work for Uber.\u003c/p>\n\u003cp>[aside label=\"Related Stories\" postID=\"news_11986533,news_11987167,forum_2010101905828\"]“Uber has calculated that if you reasonably calculate the expenses you come up with a rate of 41¢ per mile and 68¢ per minute,” he said.\u003c/p>\n\u003cp>The legislators left that hearing without giving any indication\u003cstrong> \u003c/strong>which way it would go. But a couple of weeks later, they made a move that stunned observers.\u003c/p>\n\u003cp>On the night of May 19, \u003ca href=\"https://minnesotareformer.com/2024/05/21/heres-whats-in-the-bill-regulating-uber-and-lyft-driver-pay-and-labor-standards/\">the state passed a new bill\u003c/a> giving drivers the minimum wage rate of $1.28 per mile and 31¢ per minute. Even though it was slightly lower and preempted the Minneapolis ordinance, Wonsley and the council backed it. Frey says he was opposed to the preemption, but that he ultimately supported the bill too since he says it was “nearly identical” to what he proposed months earlier.\u003c/p>\n\u003cp>It was a major win for the MULDA drivers. After the bill’s passage, in a moment of jubilation in the Capitol’s hallways, they hoisted one of the state legislators in the air and chanted “MULDA” over and over. The legislator, Sen. Omar Fateh, who was instrumental in getting the bill passed, said, “It was Uber and Lyft versus MULDA and MULDA won.” The crowd erupted in cheers.\u003c/p>\n\u003cfigure id=\"attachment_11990771\" class=\"wp-caption alignnone\" style=\"max-width: 1700px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-11990771\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/06/npr.brightspotcdn8-copy.jpg\" alt=\"\" width=\"1700\" height=\"1134\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/06/npr.brightspotcdn8-copy.jpg 1700w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/06/npr.brightspotcdn8-copy-800x534.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/06/npr.brightspotcdn8-copy-1020x680.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/06/npr.brightspotcdn8-copy-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/06/npr.brightspotcdn8-copy-1536x1025.jpg 1536w\" sizes=\"(max-width: 1700px) 100vw, 1700px\">\u003cfigcaption class=\"wp-caption-text\">Rideshare vehicles share the road with other drivers in downtown Minneapolis. \u003ccite>(Jenn Ackerman for NPR)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Spokespeople for Uber and Lyft say the companies accepted the compromise, and that neither will shutter operations in the state. Unlike the minimum pay laws for ride-hail drivers in California and Washington state, Minnesota’s bill doesn’t mandate that drivers remain independent contractors — something Uber and Lyft had sought, but didn’t get.\u003c/p>\n\u003cp>On May 28, Walz signed the bill into law with Ali by his side wearing a white MULDA T-shirt. During a press conference announcing its passage, the governor congratulated state lawmakers. “No one else has been able to do this in the country,” Walz said.\u003c/p>\n\u003cp>The driver McGlory says MULDA has heard from drivers in other states who have been watching Minnesota over the past year and a half, waiting to see what happened.\u003c/p>\n\u003cp>“I’m doing this not just for drivers in Minneapolis. I’m doing this for the drivers in Nashville, Tenn. I’m doing this for drivers in Jackson, Miss.,” McGlory says, pausing for a moment before continuing. “Because when we educate ourselves, when we organize ourselves and we mobilize ourselves, we can win.”\u003c/p>\n\u003cp>“Like my favorite physics teacher said, ‘We have to become an unstoppable force that meets an immovable object.’”\u003c/p>\n\u003cp>[ad floatright]\u003c/p>\n",
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"excerpt": "Uber and Lyft have lobbied in cities across the country to curb minimum wage laws for drivers, but drivers of the ride-hail companies in Minnesota scored a hard-fought victory after years of struggle.",
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"title": "Uber and Lyft Are Fighting Minimum Wage Laws. But in This State, the Drivers Won | KQED",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003cp>In a windowless room, Uber driver Farhan Badel took the podium in front of a committee of Minnesota state legislators in early May. As Badel leaned into the microphone and started speaking, the room quieted. Testifying before lawmakers was something he’d done nearly a dozen times before, but he says this time felt like his last chance.\u003c/p>\n\u003cp>“We’ve been fighting for two long years,” Badel stated, referencing ride-hail drivers’ battle to get a minimum wage law passed in the state. He said his message to lawmakers was this: “Uber and Lyft, especially Uber, notorious for their shady lobbying … should not be allowed to dictate what becomes law in this state.”\u003c/p>\n\u003cp>The lobbying Badel referenced is part of a playbook Uber and Lyft have used in cities across the country to curb minimum wage laws for drivers. The San Francisco-based companies have barraged lawmakers with emails, sent warning messages to riders and drivers, and threatened to vacate states if they were forced to pay minimum wage.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>In Minnesota, the campaign was particularly aggressive. Interviews with drivers and lawmakers, along with internal emails and documents obtained by NPR, show that Minnesota was the target of an intense operation.\u003c/p>\n\u003cp>That hearing where Badel testified was the latest twist in a whiplash series of events. Over the last two years, ride-hail drivers had organized and grown into a more than 1,300-member group that marched at City Hall, met with lawmakers and brought national attention to their plight.\u003c/p>\n\u003cp>They had seen wins and losses in dizzying succession: Three separate bills mandating minimum wage for ride-hail drivers passed at the state and city levels, only to get unexpectedly vetoed by Gov. Tim Walz or Minneapolis Mayor Jacob Frey. The drivers say it felt to them like a true David and Goliath situation, pitting them against multibillion-dollar corporations that seemed to hold far more power.\u003c/p>\n\u003cfigure id=\"attachment_11990764\" class=\"wp-caption alignnone\" style=\"max-width: 1700px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-11990764\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/06/npr.brightspotcdn-1-copy.jpg\" alt=\"\" width=\"1700\" height=\"1134\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/06/npr.brightspotcdn-1-copy.jpg 1700w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/06/npr.brightspotcdn-1-copy-800x534.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/06/npr.brightspotcdn-1-copy-1020x680.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/06/npr.brightspotcdn-1-copy-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/06/npr.brightspotcdn-1-copy-1536x1025.jpg 1536w\" sizes=\"(max-width: 1700px) 100vw, 1700px\">\u003cfigcaption class=\"wp-caption-text\">Farhan Badel, an Uber/Lyft driver and MULDA organizer, in Apple Valley, Minn., on May 25. \u003ccite>(Jenn Ackerman for NPR)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>This spring it reached a boiling point. After gains by the drivers, Uber and Lyft stepped up their lobbying campaign and \u003ca href=\"https://www.npr.org/2024/03/15/1238885721/uber-lyft-minneapolis-minimum-wage-law\">threatened to pull out of Minneapolis\u003c/a>.\u003c/p>\n\u003cp>“This is part of their corporate playbook,” says Laura Padin, who \u003ca href=\"https://www.datocms-assets.com/64990/1714149807-the-bullys-playbook-april-2024.pdf\">studies lobbying in the gig economy (PDF)\u003c/a> at the National Employment Law Project, a labor rights advocacy organization. “The fact that they can issue threats and say ‘We’re going to leave if you treat us like everyone else’ is a big problem.”\u003c/p>\n\u003cp>Spokespeople for Uber and Lyft say the proposed minimum wage would have left the companies unable to sustain their businesses in the state. Uber says it would have made Minnesota “one of the most expensive markets in the country,” and Lyft says it would have made “prices rise so much that we would have seen a 51% decrease in ride requests.”\u003c/p>\n\u003cp>Walz and Frey, both labor-friendly Democrats, had been adamant that they wanted ride-hail drivers to make a livable wage. They also took the companies, and their warnings, seriously.\u003c/p>\n\u003cp>“From the very beginning, I had two primary goals,” Frey told NPR in an interview. “To get a very significant pay increase for drivers and to keep this very important rideshare service, including Uber and Lyft, in our city.”\u003c/p>\n\u003cp>Similar scenarios have played out in New York and Seattle, which ultimately passed city minimum wage laws. But every state law governing driver pay and protections that has been crafted to date has included provisions backed by Uber and Lyft — through their \u003ca href=\"https://www.nybooks.com/online/2024/05/09/inside-uber-political-machine/?utm_source=Twitter&utm_medium=social&utm_campaign=2024-05-09_Wells-Uber-1\">lobbying and public campaigns\u003c/a>. For example, in California, the companies \u003ca href=\"https://cal-access.sos.ca.gov/Campaign/Committees/Detail.aspx?id=1422181&session=2019&view=received\">spent a combined $108.5 million\u003c/a> on a successful \u003ca href=\"https://www.npr.org/2020/11/05/931561150/california-voters-give-uber-lyft-a-win-but-some-drivers-arent-so-sure\">ballot measure campaign\u003c/a> to exempt them from a state labor law. Another statewide battle happened in Washington, and one is underway in Massachusetts.\u003c/p>\n\u003cp>But in Minnesota, something wholly unexpected happened last month — the drivers won.\u003c/p>\n\u003ch2>‘The worst I’ve seen in eight years’\u003c/h2>\n\u003cp>It all started in a small coffee shop in Minneapolis. In the summer of 2022, ride-hail driver Eid Ali gathered with about 20 Uber and Lyft drivers to talk about low pay, safety concerns and other issues that come with the job. Ali is a father of five and the sole provider for his family. Before he started driving for Uber and Lyft in 2014, Ali was a taxi driver and had done some organizing. He says this helped him and the other drivers come up with a game plan.\u003c/p>\n\u003cp>The first step was to recruit more drivers. Ali and the others went to shopping malls and airport parking lots to speak with drivers. They also went to mosques — the majority of ride-hail drivers in Minneapolis are immigrants, according to \u003ca href=\"https://www.dli.mn.gov/sites/default/files/pdf/TNC_driver_earnings_analysis_pay_standard_options_report_030824.pdf\">state data (PDF)\u003c/a>, with many from East Africa, especially Somalia.\u003c/p>\n\u003cp>The drivers coalesced in a group called Minnesota Uber/Lyft Drivers Association, or MULDA, and Ali became the president.\u003c/p>\n\u003cfigure id=\"attachment_11990765\" class=\"wp-caption alignnone\" style=\"max-width: 1700px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-11990765\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/06/npr.brightspotcdn2-copy.jpg\" alt=\"\" width=\"1700\" height=\"1134\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/06/npr.brightspotcdn2-copy.jpg 1700w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/06/npr.brightspotcdn2-copy-800x534.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/06/npr.brightspotcdn2-copy-1020x680.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/06/npr.brightspotcdn2-copy-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/06/npr.brightspotcdn2-copy-1536x1025.jpg 1536w\" sizes=\"(max-width: 1700px) 100vw, 1700px\">\u003cfigcaption class=\"wp-caption-text\">Eid Ali, president of Minnesota Uber/Lyft Drivers Association (MULDA), at the organization’s offices in Bloomington, Minn., on May 25. \u003ccite>(Jenn Ackerman for NPR)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>He says drivers reached out to him constantly about not being able to make ends meet. “Family folks raising kids, who depend on this income, are coming to me every day and telling me ‘I don’t know what to do,’” Ali says. “I was thinking that if I don’t do anything, if I don’t fight a few more days or maybe a few more weeks, who’s going to do that?”\u003c/p>\n\u003cp>Uber and Lyft categorize drivers as independent contractors rather than employees. This means drivers pay their own expenses such as gas, car maintenance and cellphones, and they don’t have employee benefits, including health insurance, sick days and workers’ compensation.\u003c/p>\n\u003cp>Low pay is the top problem, drivers say, as their earnings have steadily shrunk and become harder to predict. In 2022, both Uber and Lyft \u003ca href=\"https://themarkup.org/working-for-an-algorithm/2022/03/01/secretive-algorithm-will-now-determine-uber-driver-pay-in-many-cities\">switched how they paid drivers\u003c/a>, going from a time-and-mileage calculation to an opaque algorithm. Uber and Lyft say the software helps drivers pick and choose trips, but drivers say since that change they’ve seen the companies take a bigger cut, while they’ve gotten less.\u003c/p>\n\u003cp>Sergio Avedian, a longtime ride-hail driver in Los Angeles and senior contributor to the popular blog the \u003ca href=\"https://therideshareguy.com/\">Rideshare Guy\u003c/a>, says thousands of drivers regularly send him their pay stubs. “This is the worst I’ve seen in eight years,” he says, estimating he often earns less than minimum wage after expenses. “But people are driving, they’re desperate.”\u003c/p>\n\u003cp>In the Twin Cities metro area, where 95% of all of Minnesota’s ride-hail trips happen, the median take-home wage for drivers is $13.63 per hour, according to a \u003ca href=\"https://www.dli.mn.gov/sites/default/files/pdf/TNC_driver_earnings_analysis_pay_standard_options_report_030824.pdf\">report (PDF)\u003c/a> by the Minnesota Department of Labor and Industry. That’s below the minimum wage for large businesses in St. Paul ($15) and Minneapolis ($15.57).\u003c/p>\n\u003cp>Uber’s spokesperson calls this report “\u003ca href=\"https://uberpubpolicy.medium.com/excessive-rates-and-their-negative-effects-a-review-of-minnesotas-proposed-pay-standard-9747c14d0254\">flawed\u003c/a>.” Lyft didn’t respond to questions about driver pay.\u003c/p>\n\u003cp>Uber and Lyft have shaped minimum wage laws in their favor in other states. In Washington, for example, after Seattle passed a minimum wage for ride-hail drivers, the two companies \u003ca href=\"https://themarkup.org/news/2022/03/04/bill-in-washington-state-would-be-first-to-bar-uber-and-lyft-drivers-from-being-classified-as-employees\">lobbied legislators\u003c/a> to pass a state law. That law gives drivers a minimum pay floor but also grants a key concession to the companies: ensuring that the drivers remain classified as independent contractors, which exempts the companies from providing customary worker benefits.\u003c/p>\n\u003cfigure id=\"attachment_11990766\" class=\"wp-caption alignnone\" style=\"max-width: 1700px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-11990766\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/06/npr.brightspotcdn3-copy.jpg\" alt=\"\" width=\"1700\" height=\"1134\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/06/npr.brightspotcdn3-copy.jpg 1700w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/06/npr.brightspotcdn3-copy-800x534.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/06/npr.brightspotcdn3-copy-1020x680.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/06/npr.brightspotcdn3-copy-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/06/npr.brightspotcdn3-copy-1536x1025.jpg 1536w\" sizes=\"(max-width: 1700px) 100vw, 1700px\">\u003cfigcaption class=\"wp-caption-text\">Symbols for Uber and Lyft adorn Farhan Badel’s vehicle in Apple Valley, Minn. \u003ccite>(Jenn Ackerman for NPR)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>By the fall of 2022, hundreds of drivers had joined MULDA, with the campaign crystallizing around the push for a minimum wage. That October, they \u003ca href=\"https://minnesotareformer.com/2022/10/20/uber-and-lyft-drivers-press-lawmakers-to-address-long-standing-labor-complaints/\">held their first press conference\u003c/a> at the Minnesota state Capitol. “Drivers are at a breaking point,” Ali announced, alongside state lawmakers that day. From there, their cause quickly picked up steam.\u003c/p>\n\u003cp>By March 2023, state legislators had introduced a \u003ca href=\"https://www.revisor.mn.gov/bills/bill.php?b=House&f=HF2369&ssn=0&y=2023\">bill\u003c/a> that set out minimum pay and other protections for ride-hail drivers. It swiftly passed the House and Senate and landed on Walz’s desk in late May 2023.\u003c/p>\n\u003cp>All signs pointed to Walz signing the bill, Badel says. The drivers got ready to celebrate a victory.\u003c/p>\n\u003cp>“Insiders told us to come to the state Capitol the day when they signed all these bills,” Badel says. “They told us to come there dressed well — you know, look presentable, look happy. So, we were getting all these checkmarks that he was going to sign the bill.”\u003c/p>\n\u003ch2>A lobbying blitz\u003c/h2>\n\u003cp>What Badel and Ali didn’t know was that Uber and Lyft’s lobbyists were hard at work behind the scenes.\u003c/p>\n\u003cp>Days before the governor received the bill, the companies’ lobbyists sent a slew of emails to his staffers and colleagues, according to public records obtained by NPR. Those included “talking points and numbers” that said rider fares would skyrocket if the bill passed. In Minneapolis, they said fares would go up 70%, without citing specific data.\u003c/p>\n\u003cp>\u003c!-- iframe plugin v.4.3 wordpress.org/plugins/iframe/ -->\u003cbr>\n\u003ciframe loading=\"lazy\" src=\"https://apps.npr.org/dailygraphics/graphics/lyft-uber-playbook-20240610/aiTimeline.html?initialWidth=840&childId=responsive-embed-lyft-uber-playbook-20240610-aiTimeline&parentTitle=Uber%20and%20Lyft%20use%20lobbying%20to%20fight%20minimum%20wage%20law%20in%20Minnesota%20%3A%20NPR&parentUrl=https%3A%2F%2Fwww.npr.org%2F2024%2F06%2F17%2Fnx-s1-4942958%2Fuber-minimum-wage-minnesota-lyft-lobbying\" width=\"800\" height=\"2200\" scrolling=\"yes\" class=\"iframe-class\" frameborder=\"0\">\u003c/iframe>\u003c/p>\n\u003cp>Brent Kent, a registered lobbyist for Lyft and the company’s director of public policy, sent a letter to Minnesota’s Senate president saying the bill would have a “catastrophic impact” and create “transportation deserts.” Rides in Minneapolis would go from $17 to $54, he said, also not citing specific data for that statistic.\u003c/p>\n\u003cp>As signing day neared, the lobbyists ramped up their efforts. They requested phone calls between Walz and the CEOs of both Uber and Lyft. At one point, Uber lobbyist Joel Carlson emailed the governor’s legislative assistant asking for an alternative email for the office, because he said he had a lot of people wanting to write in with opposition to the bill and didn’t want to “email bomb” her.\u003c/p>\n\u003cp>Carlson also fired off “veto request” letters he collected from 11 community groups — business and hospitality associations as well as organizations that work with people with disabilities, the elderly and domestic violence survivors. At least half of those groups have partnered with Uber or Lyft, but that wasn’t disclosed in their letters.\u003c/p>\n\u003cp>Uber’s spokesperson says it “engaged many organizations and local stakeholders to ensure they understood the impact of the legislation” and “many decided to express their concerns.” The spokesperson also confirmed that Uber CEO Dara Khosrowshahi had spoken with the governor.\u003c/p>\n\u003cfigure id=\"attachment_11990767\" class=\"wp-caption alignnone\" style=\"max-width: 1700px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-11990767\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/06/npr.brightspotcdn4-copy.jpg\" alt=\"\" width=\"1700\" height=\"1134\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/06/npr.brightspotcdn4-copy.jpg 1700w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/06/npr.brightspotcdn4-copy-800x534.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/06/npr.brightspotcdn4-copy-1020x680.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/06/npr.brightspotcdn4-copy-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/06/npr.brightspotcdn4-copy-1536x1025.jpg 1536w\" sizes=\"(max-width: 1700px) 100vw, 1700px\">\u003cfigcaption class=\"wp-caption-text\">Matthew McGlory, a rideshare driver and active member of MULDA, in downtown Minneapolis. \u003ccite>(Jenn Ackerman for NPR)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>“We urged the governor to veto the bill publicly, as well, via issued statements and in emails to riders and drivers,” the spokesperson says.\u003c/p>\n\u003cp>Lyft didn’t respond to questions about its involvement with the letters from community groups or conversations between its CEO and the governor.\u003c/p>\n\u003cp>Days before the anticipated signing, the companies rolled out a tactic they’d used in California, New York, Texas and other states: They \u003ca href=\"https://www.cbsnews.com/news/uber-minnesota-rideshare-driver-bill-veto-tim-walz/\">threatened to leave the state\u003c/a> if the bill was signed into law.\u003c/p>\n\u003cp>By May 25, 2023, Ali says he and the other drivers were anxious about the outcome. They gathered in front of Walz’s office chanting, “Governor sign the bill!”\u003c/p>\n\u003cp>That afternoon, Walz issued his \u003ca href=\"https://www.house.mn.gov/NewLaws/story/2023/5502\">first and only veto\u003c/a> in four years as governor.\u003c/p>\n\u003cp>His veto letter started off saying the minimum wage bill “could make Minnesota one of the most expensive states in the country for rideshare.” It cited the need to maintain ride-hail services in the state and also referenced the letters from community groups.\u003c/p>\n\u003cp>A spokeswoman for Walz says that alongside the veto, the governor \u003ca href=\"https://mn.gov/governor/assets/EO%2023-07%20TNC_tcm1055-579270.pdf\">formed a task force (PDF)\u003c/a> to study the issue. She pointed NPR to a \u003ca href=\"https://mn.gov/governor/newsroom/press-releases/#/detail/appId/1/id/579275\">press release\u003c/a> where he said, “Rideshare drivers deserve fair wages and safe working conditions … This is not the right bill to achieve these goals.”\u003c/p>\n\u003cp>Ali says it was a big surprise and a major blow for MULDA. “That was my worst nightmare, because I didn’t know what to say to those drivers.”\u003c/p>\n\u003ch2>‘You’re our last resort’\u003c/h2>\n\u003cp>As the state bill made its way through the Legislature, the MULDA drivers were also simultaneously working with city council members in Minneapolis. After the governor’s veto, the drivers reorganized and went all in at the local level — becoming ever-present at City Hall.\u003c/p>\n\u003cp>“They came to City Hall many, many times, saying: ‘Government officials, you’re our last resort,’” says Robin Wonsley, the Minneapolis council member for Ward 2.\u003c/p>\n\u003cp>“The makeup of the workforce for the rideshare companies is predominantly Black, predominantly immigrant and also predominantly low income,” she added. “And many of these drivers, or a disproportionate number of these drivers, are \u003ca href=\"https://www.dli.mn.gov/sites/default/files/pdf/TNC_driver_earnings_analysis_pay_standard_options_report_030824.pdf\">actually on public assistance (PDF)\u003c/a>.”\u003c/p>\n\u003cfigure id=\"attachment_11990768\" class=\"wp-caption alignnone\" style=\"max-width: 1700px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-11990768\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/06/npr.brightspotcdn5-copy.jpg\" alt=\"\" width=\"1700\" height=\"1134\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/06/npr.brightspotcdn5-copy.jpg 1700w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/06/npr.brightspotcdn5-copy-800x534.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/06/npr.brightspotcdn5-copy-1020x680.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/06/npr.brightspotcdn5-copy-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/06/npr.brightspotcdn5-copy-1536x1025.jpg 1536w\" sizes=\"(max-width: 1700px) 100vw, 1700px\">\u003cfigcaption class=\"wp-caption-text\">Robin Wonsley, Minneapolis council member for Ward 2, outside City Hall in Bloomington, Minn., on May 26. Wonsley and colleagues worked on a city ordinance to give ride-hail drivers a minimum wage in Minneapolis. \u003ccite>(Jenn Ackerman for NPR)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>She joined fellow council members Jamal Osman, who’d introduced her to MULDA, and Jason Chavez to work on a city ordinance. They reached out to economists and experts to come up with a calculation that would be equivalent to the city’s minimum wage. Uber and Lyft only pay drivers when they’re giving rides and not when they’re waiting for a passenger, so a straight hourly wage wouldn’t work. The \u003ca href=\"https://lims.minneapolismn.gov/Download/MetaData/31233/2023-052_Id_31233.pdf\">ordinance (PDF)\u003c/a> they introduced mandated that drivers be paid $1.40 per mile and 51¢ per minute.\u003c/p>\n\u003cp>It \u003ca href=\"https://www.mprnews.org/story/2023/08/17/minneapolis-approves-measure-to-boost-pay-for-uber-lyft-drivers\">passed the council\u003c/a> in August 2023 by a 7–5 vote. But behind the scenes, the companies’ lobbyists were leaning hard on Frey.\u003c/p>\n\u003cp>As with the governor, Uber and Lyft’s lobbyists targeted the mayor, according to internal emails obtained by NPR through public records requests. Lyft’s Kent reached out to staffers saying the company had “grave concerns.” He sent the mayor and council members an opposition letter from a Lyft executive that had one sentence bolded and underlined: “Should this proposal become law, Lyft will be forced to cease operations.”\u003c/p>\n\u003cp>Meanwhile, Uber’s Carlson called the ordinance “problematic.” On Aug. 21, Carlson emailed a senior aide at City Hall, saying he had spoken with the mayor.\u003c/p>\n\u003cp>“Uber understands the importance and optics to provide a thoughtful response to the council’s vote and have offered to him the opportunity to announce the following if he chooses,” the email reads. Carlson said the mayor could announce that Uber pledges to give drivers a minimum wage and a $5 minimum on all trips. He sent suggested language for the mayor’s announcement.\u003c/p>\n\u003cfigure id=\"attachment_11990769\" class=\"wp-caption alignnone\" style=\"max-width: 1700px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-11990769\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/06/npr.brightspotcdn6-copy.jpg\" alt=\"\" width=\"1700\" height=\"1134\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/06/npr.brightspotcdn6-copy.jpg 1700w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/06/npr.brightspotcdn6-copy-800x534.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/06/npr.brightspotcdn6-copy-1020x680.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/06/npr.brightspotcdn6-copy-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/06/npr.brightspotcdn6-copy-1536x1025.jpg 1536w\" sizes=\"(max-width: 1700px) 100vw, 1700px\">\u003cfigcaption class=\"wp-caption-text\">In Minneapolis, the median take-home wage for ride-hail drivers is nearly $2 less than the minimum wage. \u003ccite>(Jenn Ackerman for NPR)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>The next day, Frey \u003ca href=\"https://www.mprnews.org/story/2023/08/22/minneapolis-mayor-jacob-frey-vetoes-rideshare-bill\">vetoed the ordinance\u003c/a>. In his \u003ca href=\"https://lims.minneapolismn.gov/Download/FileV2/32370/2023_052-Veto-Letter.pdf\">veto letter (PDF)\u003c/a>, he said he’d work on another ordinance that included all stakeholders. The mayor also wrote that he was “pleased to share” that he secured a commitment from Uber to provide drivers a minimum wage and a $5 minimum per ride.\u003c/p>\n\u003cp>Uber’s spokesperson says the minimum wage guarantee “was not part of any negotiations.” A spokesperson for Frey says the commitment from Uber “was not in exchange for a veto.”\u003c/p>\n\u003cp>Wonsley says she was outraged.\u003c/p>\n\u003cp>“Why are we having city leaders now supporting a multibillion-dollar corporation and having an exemption from a city policy that hundreds of small businesses have been in compliance with?” she says, referring to the city’s minimum wage law. “And then he announced a nonbinding agreement with Uber, saying, ‘Look, we don’t need to change nothing, the company has made a commitment, a symbolic commitment to pay drivers more.’ ”\u003c/p>\n\u003cp>“We were like ‘Wait, what?’ ” Wonsley adds. “That makes absolutely no sense.”\u003c/p>\n\u003cp>Frey’s spokesperson says the commitment from Uber “was never intended to be a permanent solution.”\u003c/p>\n\u003ch2>Public pressure campaign\u003c/h2>\n\u003cp>The mayor’s veto, coming after the governor’s veto, could have been the end for MULDA drivers’ quest to get a minimum wage law. In other states that went through similar scenarios, such setbacks have taken the wind out of organizing efforts. But Ali and Badel say they came too close to give up. And council member Wonsley says she wasn’t ready to back down either.\u003c/p>\n\u003cp>She and her colleagues introduced two more ordinances in October 2023. One focused on minimum wage, the other on worker protections.\u003c/p>\n\u003cp>Less than six months later, the council passed the new minimum wage \u003ca href=\"https://lims.minneapolismn.gov/Download/FileV2/34129/Transportation-Rideshare-Compensation-Ordinance.pdf\">ordinance (PDF)\u003c/a> by a 9–4 vote. The next day, once again, Frey vetoed the ordinance.\u003c/p>\n\u003cp>“I asked the City Council to wait one day,” says Frey, until after the release of the statewide report on driver earnings. “Both times I vetoed it because it wasn’t supported by the data. And so, we should be listening to the data.”\u003c/p>\n\u003cp>This time, however, the council had enough votes to \u003ca href=\"https://www.mprnews.org/story/2024/03/14/minneapolis-city-council-overrides-freys-veto-on-ordinance-boosting-rideshare-driver-pay\">override his veto\u003c/a>.\u003c/p>\n\u003cp>With this go-round, Uber and Lyft kicked their pressure campaign up a notch. Instead of mostly working with lawmakers behind closed doors, the companies brought their lobbying to the public.\u003c/p>\n\u003cp>“It’s been a full-court press campaign,” Wonsley says. “Every single day there are several articles, interviews in the press, basically demonizing our actions and creating a lot of confusion for the public around what our policy actually accomplished.”\u003c/p>\n\u003cp>The day after the veto override, Uber and Lyft \u003ca href=\"https://www.npr.org/2024/03/15/1238885721/uber-lyft-minneapolis-minimum-wage-law\">announced they were leaving Minneapolis\u003c/a> as soon as the ordinance went into effect. It was around this time that Matthew McGlory, a MULDA member and longtime Uber and Lyft driver, started getting in-app messages and emails from the companies.\u003c/p>\n\u003cfigure id=\"attachment_11990770\" class=\"wp-caption alignnone\" style=\"max-width: 1700px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-11990770\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/06/npr.brightspotcdn7-copy.jpg\" alt=\"\" width=\"1700\" height=\"1134\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/06/npr.brightspotcdn7-copy.jpg 1700w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/06/npr.brightspotcdn7-copy-800x534.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/06/npr.brightspotcdn7-copy-1020x680.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/06/npr.brightspotcdn7-copy-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/06/npr.brightspotcdn7-copy-1536x1025.jpg 1536w\" sizes=\"(max-width: 1700px) 100vw, 1700px\">\u003cfigcaption class=\"wp-caption-text\">Matthew McGlory, a rideshare driver and active member of MULDA, in downtown Minneapolis on May 26. McGlory says drivers in other states have been watching Minnesota, waiting to see what happened. \u003ccite>(Jenn Ackerman for NPR)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>“We know that this decision will have a huge negative effect,” a message from Uber read. “It will put thousands of drivers — like you — out of work.” Uber provided a link to email lawmakers urging them to pass statewide legislation that could preempt the city ordinance and be more favorable to the companies.\u003c/p>\n\u003cp>Lyft, meanwhile, sent an email to its riders saying the ordinance would make rides “unaffordable” for the majority of residents. Lyft’s spokesperson didn’t respond to questions about the in-app messages. Uber’s spokesperson says, “The message speaks for itself.”\u003c/p>\n\u003cp>There was also a flurry of activity in the local news. Uber put an online ad in the \u003cem>Star Tribune\u003c/em> saying Minneapolis was “forcing” it to leave and offered a button to click to “save our rides.” Dan Meyers, a director at disability advocacy group Rise, \u003ca href=\"https://www.startribune.com/minneapolis-rideshare-driver-pay-proposal-looks-at-only-one-side-of-equation/600348209/\">wrote an op-ed\u003c/a> saying the ordinance would be “devastating to the disability community.” Lyft and Rise are \u003ca href=\"https://rise.org/12858-2/\">longtime partners\u003c/a>, which wasn’t disclosed in the op-ed.\u003c/p>\n\u003cp>A spokesperson for Rise says, “Our work with Lyft is well-known among our peers and partners.” Lyft didn’t respond to questions about any possible involvement with the op-ed.\u003c/p>\n\u003cp>Even with the ordinance set to go into effect in Minneapolis, MULDA drivers say they were still nervous. A statewide bill could preempt the city ordinance and undercut their pay. It was hard to tell which way it would go.\u003c/p>\n\u003ch2>‘No one else has been able to do this in the country’\u003c/h2>\n\u003cp>The same day Farhan Badel took the podium in early May pleading with state lawmakers to not let the ride-hail companies dictate the law, Uber’s Carlson also spoke. They were discussing a compromise state bill that would preempt the Minneapolis ordinance — it offered drivers a rate of $1.27 per mile and 49¢ per minute. Carlson told the lawmakers this wouldn’t work for Uber.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>“Uber has calculated that if you reasonably calculate the expenses you come up with a rate of 41¢ per mile and 68¢ per minute,” he said.\u003c/p>\n\u003cp>The legislators left that hearing without giving any indication\u003cstrong> \u003c/strong>which way it would go. But a couple of weeks later, they made a move that stunned observers.\u003c/p>\n\u003cp>On the night of May 19, \u003ca href=\"https://minnesotareformer.com/2024/05/21/heres-whats-in-the-bill-regulating-uber-and-lyft-driver-pay-and-labor-standards/\">the state passed a new bill\u003c/a> giving drivers the minimum wage rate of $1.28 per mile and 31¢ per minute. Even though it was slightly lower and preempted the Minneapolis ordinance, Wonsley and the council backed it. Frey says he was opposed to the preemption, but that he ultimately supported the bill too since he says it was “nearly identical” to what he proposed months earlier.\u003c/p>\n\u003cp>It was a major win for the MULDA drivers. After the bill’s passage, in a moment of jubilation in the Capitol’s hallways, they hoisted one of the state legislators in the air and chanted “MULDA” over and over. The legislator, Sen. Omar Fateh, who was instrumental in getting the bill passed, said, “It was Uber and Lyft versus MULDA and MULDA won.” The crowd erupted in cheers.\u003c/p>\n\u003cfigure id=\"attachment_11990771\" class=\"wp-caption alignnone\" style=\"max-width: 1700px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-11990771\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/06/npr.brightspotcdn8-copy.jpg\" alt=\"\" width=\"1700\" height=\"1134\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/06/npr.brightspotcdn8-copy.jpg 1700w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/06/npr.brightspotcdn8-copy-800x534.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/06/npr.brightspotcdn8-copy-1020x680.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/06/npr.brightspotcdn8-copy-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/06/npr.brightspotcdn8-copy-1536x1025.jpg 1536w\" sizes=\"(max-width: 1700px) 100vw, 1700px\">\u003cfigcaption class=\"wp-caption-text\">Rideshare vehicles share the road with other drivers in downtown Minneapolis. \u003ccite>(Jenn Ackerman for NPR)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Spokespeople for Uber and Lyft say the companies accepted the compromise, and that neither will shutter operations in the state. Unlike the minimum pay laws for ride-hail drivers in California and Washington state, Minnesota’s bill doesn’t mandate that drivers remain independent contractors — something Uber and Lyft had sought, but didn’t get.\u003c/p>\n\u003cp>On May 28, Walz signed the bill into law with Ali by his side wearing a white MULDA T-shirt. During a press conference announcing its passage, the governor congratulated state lawmakers. “No one else has been able to do this in the country,” Walz said.\u003c/p>\n\u003cp>The driver McGlory says MULDA has heard from drivers in other states who have been watching Minnesota over the past year and a half, waiting to see what happened.\u003c/p>\n\u003cp>“I’m doing this not just for drivers in Minneapolis. I’m doing this for the drivers in Nashville, Tenn. I’m doing this for drivers in Jackson, Miss.,” McGlory says, pausing for a moment before continuing. “Because when we educate ourselves, when we organize ourselves and we mobilize ourselves, we can win.”\u003c/p>\n\u003cp>“Like my favorite physics teacher said, ‘We have to become an unstoppable force that meets an immovable object.’”\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"title": "Code Switch / Life Kit",
"info": "\u003cem>Code Switch\u003c/em>, which listeners will hear in the first part of the hour, has fearless and much-needed conversations about race. Hosted by journalists of color, the show tackles the subject of race head-on, exploring how it impacts every part of society — from politics and pop culture to history, sports and more.\u003cbr />\u003cbr />\u003cem>Life Kit\u003c/em>, which will be in the second part of the hour, guides you through spaces and feelings no one prepares you for — from finances to mental health, from workplace microaggressions to imposter syndrome, from relationships to parenting. The show features experts with real world experience and shares their knowledge. Because everyone needs a little help being human.\u003cbr />\u003cbr />\u003ca href=\"https://www.npr.org/podcasts/510312/codeswitch\">\u003cem>Code Switch\u003c/em> offical site and podcast\u003c/a>\u003cbr />\u003ca href=\"https://www.npr.org/lifekit\">\u003cem>Life Kit\u003c/em> offical site and podcast\u003c/a>\u003cbr />",
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"title": "How I Built This with Guy Raz",
"info": "Guy Raz dives into the stories behind some of the world's best known companies. How I Built This weaves a narrative journey about innovators, entrepreneurs and idealists—and the movements they built.",
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"airtime": "SUN 7:30pm-8pm",
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"info": "Inside Europe, a one-hour weekly news magazine hosted by Helen Seeney and Keith Walker, explores the topical issues shaping the continent. No other part of the globe has experienced such dynamic political and social change in recent years.",
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"info": "Latino USA, the radio journal of news and culture, is the only national, English-language radio program produced from a Latino perspective.",
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"live-from-here-highlights": {
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"title": "Live from Here Highlights",
"info": "Chris Thile steps to the mic as the host of Live from Here (formerly A Prairie Home Companion), a live public radio variety show. Download Chris’s Song of the Week plus other highlights from the broadcast. Produced by American Public Media.",
"airtime": "SAT 6pm-8pm, SUN 11am-1pm",
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"meta": {
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"link": "/radio/program/live-from-here-highlights",
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"rss": "https://feeds.publicradio.org/public_feeds/a-prairie-home-companion-highlights/rss/rss"
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"marketplace": {
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"info": "Our flagship program, helmed by Kai Ryssdal, examines what the day in money delivered, through stories, conversations, newsworthy numbers and more. Updated Monday through Friday at about 3:30 p.m. PT.",
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"mindshift": {
"id": "mindshift",
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"info": "The MindShift podcast explores the innovations in education that are shaping how kids learn. Hosts Ki Sung and Katrina Schwartz introduce listeners to educators, researchers, parents and students who are developing effective ways to improve how kids learn. We cover topics like how fed-up administrators are developing surprising tactics to deal with classroom disruptions; how listening to podcasts are helping kids develop reading skills; the consequences of overparenting; and why interdisciplinary learning can engage students on all ends of the traditional achievement spectrum. This podcast is part of the MindShift education site, a division of KQED News. KQED is an NPR/PBS member station based in San Francisco. You can also visit the MindShift website for episodes and supplemental blog posts or tweet us \u003ca href=\"https://twitter.com/MindShiftKQED\">@MindShiftKQED\u003c/a> or visit us at \u003ca href=\"/mindshift\">MindShift.KQED.org\u003c/a>",
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"order": 13
},
"link": "/podcasts/mindshift",
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"info": "For decades, the process for how police police themselves has been inconsistent – if not opaque. In some states, like California, these proceedings were completely hidden. After a new police transparency law unsealed scores of internal affairs files, our reporters set out to examine these cases and the shadow world of police discipline. On Our Watch brings listeners into the rooms where officers are questioned and witnesses are interrogated to find out who this system is really protecting. Is it the officers, or the public they've sworn to serve?",
"imageSrc": "https://cdn.kqed.org/wp-content/uploads/2024/04/On-Our-Watch-Podcast-Tile-703x703-1.jpg",
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"order": 12
},
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"info": "Our weekly podcast explores how the media 'sausage' is made, casts an incisive eye on fluctuations in the marketplace of ideas, and examines threats to the freedom of information and expression in America and abroad. For one hour a week, the show tries to lift the veil from the process of \"making media,\" especially news media, because it's through that lens that we see the world and the world sees us",
"airtime": "SUN 2pm-3pm, MON 12am-1am",
"imageSrc": "https://ww2.kqed.org/radio/wp-content/uploads/sites/50/2018/04/onTheMedia.png",
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"our-body-politic": {
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"title": "Our Body Politic",
"info": "Presented by KQED, KCRW and KPCC, and created and hosted by award-winning journalist Farai Chideya, Our Body Politic is unapologetically centered on reporting on not just how women of color experience the major political events of today, but how they’re impacting those very issues.",
"airtime": "SAT 6pm-7pm, SUN 1am-2am",
"imageSrc": "https://cdn.kqed.org/wp-content/uploads/2024/04/Our-Body-Politic-Podcast-Tile-360x360-1.jpg",
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},
"link": "/radio/program/our-body-politic",
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"google": "https://podcasts.google.com/feed/aHR0cHM6Ly9mZWVkcy5zaW1wbGVjYXN0LmNvbS9feGFQaHMxcw",
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},
"perspectives": {
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"tagline": "KQED's series of daily listener commentaries since 1991",
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"officialWebsiteLink": "/perspectives/",
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"order": 15
},
"link": "/perspectives",
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