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The election will also be notable because of the likely record number of \u003c/span>\u003ca href=\"https://www.kpbs.org/news/border-immigration/2024/01/10/2024-mexico-election-and-what-that-means-for-mexicans-in-united-states\">\u003cspan style=\"font-weight: 400\">Mexican citizens living in California and the rest of the U.S. \u003c/span>\u003c/a>\u003cspan style=\"font-weight: 400\">who will cast ballots. \u003c/span>\u003c/li>\n\u003cli style=\"font-weight: 400\">\u003cspan style=\"font-weight: 400\">Republican Assemblyman Vince Fong \u003c/span>\u003ca href=\"https://www.kvpr.org/local-news/2024-05-22/vince-fong-wins-special-election-to-finish-ousted-house-speaker-mccarthys-term\">\u003cspan style=\"font-weight: 400\">won a special election Tuesday\u003c/span>\u003c/a>\u003cspan style=\"font-weight: 400\"> to complete the remainder of the term of ousted House Speaker Kevin McCarthy. \u003c/span>\u003cspan style=\"font-weight: 400\">A McCarthy protege who was also endorsed by former President Donald Trump, Fong defeated fellow Republican and Tulare County Sheriff Mike Boudreaux in the race for the 20th Congressional District. The two will square off again in November, with the winner serving a full two-year term in the district. \u003c/span>\u003c/li>\n\u003cli>On Tuesday, \u003ca href=\"https://www.kqed.org/news/11987167/fate-of-gig-workers-benefits-now-up-to-the-state-supreme-court\">the California Supreme Court heard arguments\u003c/a> in a case that could have a profound impact on app-based companies like Uber and Lyft as well as on their drivers. Proposition 22, which was passed by voters four years ago, allowed gig companies to reclassify workers as self-employed contractors, rather than employees. Now the state Supreme Court will decide whether to uphold the law, strike it down or strip out part and leave the rest intact.\u003c/li>\n\u003c/ul>\n\u003ch2>\u003cb>With Mexico’s Election Coming Up, Californians Could Play A Role In Deciding The Winner\u003c/b>\u003c/h2>\n\u003cp>\u003cspan style=\"font-weight: 400\">Mexico’s presidential election \u003ca href=\"https://apnews.com/article/mexico-election-protest-president-lopez-obrador-fbcf39a5e99cbe12c24b53d7476a205e\">takes place on June 2\u003c/a>. The election is historic, as \u003c/span>\u003cspan style=\"font-weight: 400\">both of Mexico’s front-running presidential candidates are women, Claudia Sheinbaum and Xóchitl Gálvez. And more than 20,000 different positions are at stake, from the presidency to the entire federal congress, along with several local races.\u003c/span>\u003c/p>\n\u003cp>\u003cspan style=\"font-weight: 400\">\u003ca href=\"https://www.kpbs.org/news/border-immigration/2024/01/10/2024-mexico-election-and-what-that-means-for-mexicans-in-united-states\">In California and across the United States, Mexican citizens are taking part in the election process\u003c/a>. There are about 12 million people who were born in Mexico who now live in the U.S. and are eligible to vote in the election.\u003c/span>\u003c/p>\n\u003cp>\u003cspan style=\"font-weight: 400\"> The number of people voting abroad has grown steadily, and this year there could be a record turnout. \u003c/span>\u003c/p>\n\u003ch2>\u003ca href=\"https://www.kvpr.org/local-news/2024-05-22/vince-fong-wins-special-election-to-finish-ousted-house-speaker-mccarthys-term\">\u003cb>Republican Assemblyman Wins Special Election In Central Valley District\u003c/b>\u003c/a>\u003c/h2>\n\u003cp>\u003cspan style=\"font-weight: 400\">Vince Fong, a California State Assembly member backed by former President Donald Trump, won a special election Tuesday to complete the remainder of the term of \u003ca href=\"https://www.kqed.org/news/11969137/former-house-speaker-kevin-mccarthy-say-he-will-retire-at-the-end-of-the-month\">former U.S. House Speaker Kevin McCarthy\u003c/a>, which runs through January.\u003c/span>\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>\u003cspan style=\"font-weight: 400\">Fong defeated fellow Republican and Tulare County Sheriff Mike Boudreaux in the 20th Congressional District, in the state’s Central Valley farm belt.\u003c/span>\u003c/p>\n\u003cp>\u003cspan style=\"font-weight: 400\">The two will face off once again in November, but this time, the winner will serve a full two-year term.\u003c/span>\u003c/p>\n\u003ch2>\u003ca href=\"https://www.kqed.org/news/11987167/fate-of-gig-workers-benefits-now-up-to-the-state-supreme-court\">\u003cb>Fate of Gig Workers’ Benefits Now Up to the State Supreme Court\u003c/b>\u003c/a>\u003c/h2>\n\u003cp>\u003cspan style=\"font-weight: 400\">Based on their line of questioning, \u003c/span>\u003ca href=\"https://calmatters.org/economy/2024/05/prop-22-oral-arguments-2/\">\u003cspan style=\"font-weight: 400\">California Supreme Court justices seemed to be reaching for a compromise\u003c/span>\u003c/a>\u003cspan style=\"font-weight: 400\"> as they heard oral arguments Tuesday in the long-running legal saga over whether gig workers should be considered independent contractors or employees.\u003c/span>\u003c/p>\n\u003cp>\u003ca href=\"https://www.kqed.org/news/11843123/prop-22-explained-why-gig-companies-are-spending-huge-money-on-an-unprecedented-measure\">\u003cspan style=\"font-weight: 400\">Proposition 22\u003c/span>\u003c/a>\u003cspan style=\"font-weight: 400\">, the gig industry-backed initiative that 58% of state voters passed in 2020, has been mired in a legal back-and-forth since it became law — including being ruled unconstitutional by a Superior Court judge before being upheld by a state appeals court. Uber, Lyft, DoorDash, Instacart and other companies have used the law to treat their drivers and delivery workers in California as independent contractors, not as employees.\u003c/span>\u003c/p>\n\u003cp>\u003c/p>\n\u003cp>\u003cspan style=\"font-weight: 400\">The specific question before the state’s highest court is whether Prop. 22 conflicts with the state Legislature’s constitutional power to enforce a complete workers’ compensation system.\u003c/span>\u003c/p>\n\n",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003cp>\u003cb>Here are the morning’s top stories on Wednesday, May 22, 2024: \u003c/b>\u003c/p>\n\u003cul>\n\u003cli style=\"font-weight: 400\">\u003cspan style=\"font-weight: 400\">Next month, voters will go to the polls in Mexico to select the country’s next president. The election is already historic because the two leading candidates, Claudia Sheinbaum and \u003c/span>\u003cspan style=\"font-weight: 400\">Xóchitl Gálvez\u003c/span>\u003cspan style=\"font-weight: 400\"> are women. The election will also be notable because of the likely record number of \u003c/span>\u003ca href=\"https://www.kpbs.org/news/border-immigration/2024/01/10/2024-mexico-election-and-what-that-means-for-mexicans-in-united-states\">\u003cspan style=\"font-weight: 400\">Mexican citizens living in California and the rest of the U.S. \u003c/span>\u003c/a>\u003cspan style=\"font-weight: 400\">who will cast ballots. \u003c/span>\u003c/li>\n\u003cli style=\"font-weight: 400\">\u003cspan style=\"font-weight: 400\">Republican Assemblyman Vince Fong \u003c/span>\u003ca href=\"https://www.kvpr.org/local-news/2024-05-22/vince-fong-wins-special-election-to-finish-ousted-house-speaker-mccarthys-term\">\u003cspan style=\"font-weight: 400\">won a special election Tuesday\u003c/span>\u003c/a>\u003cspan style=\"font-weight: 400\"> to complete the remainder of the term of ousted House Speaker Kevin McCarthy. \u003c/span>\u003cspan style=\"font-weight: 400\">A McCarthy protege who was also endorsed by former President Donald Trump, Fong defeated fellow Republican and Tulare County Sheriff Mike Boudreaux in the race for the 20th Congressional District. The two will square off again in November, with the winner serving a full two-year term in the district. \u003c/span>\u003c/li>\n\u003cli>On Tuesday, \u003ca href=\"https://www.kqed.org/news/11987167/fate-of-gig-workers-benefits-now-up-to-the-state-supreme-court\">the California Supreme Court heard arguments\u003c/a> in a case that could have a profound impact on app-based companies like Uber and Lyft as well as on their drivers. Proposition 22, which was passed by voters four years ago, allowed gig companies to reclassify workers as self-employed contractors, rather than employees. Now the state Supreme Court will decide whether to uphold the law, strike it down or strip out part and leave the rest intact.\u003c/li>\n\u003c/ul>\n\u003ch2>\u003cb>With Mexico’s Election Coming Up, Californians Could Play A Role In Deciding The Winner\u003c/b>\u003c/h2>\n\u003cp>\u003cspan style=\"font-weight: 400\">Mexico’s presidential election \u003ca href=\"https://apnews.com/article/mexico-election-protest-president-lopez-obrador-fbcf39a5e99cbe12c24b53d7476a205e\">takes place on June 2\u003c/a>. The election is historic, as \u003c/span>\u003cspan style=\"font-weight: 400\">both of Mexico’s front-running presidential candidates are women, Claudia Sheinbaum and Xóchitl Gálvez. And more than 20,000 different positions are at stake, from the presidency to the entire federal congress, along with several local races.\u003c/span>\u003c/p>\n\u003cp>\u003cspan style=\"font-weight: 400\">\u003ca href=\"https://www.kpbs.org/news/border-immigration/2024/01/10/2024-mexico-election-and-what-that-means-for-mexicans-in-united-states\">In California and across the United States, Mexican citizens are taking part in the election process\u003c/a>. There are about 12 million people who were born in Mexico who now live in the U.S. and are eligible to vote in the election.\u003c/span>\u003c/p>\n\u003cp>\u003cspan style=\"font-weight: 400\"> The number of people voting abroad has grown steadily, and this year there could be a record turnout. \u003c/span>\u003c/p>\n\u003ch2>\u003ca href=\"https://www.kvpr.org/local-news/2024-05-22/vince-fong-wins-special-election-to-finish-ousted-house-speaker-mccarthys-term\">\u003cb>Republican Assemblyman Wins Special Election In Central Valley District\u003c/b>\u003c/a>\u003c/h2>\n\u003cp>\u003cspan style=\"font-weight: 400\">Vince Fong, a California State Assembly member backed by former President Donald Trump, won a special election Tuesday to complete the remainder of the term of \u003ca href=\"https://www.kqed.org/news/11969137/former-house-speaker-kevin-mccarthy-say-he-will-retire-at-the-end-of-the-month\">former U.S. House Speaker Kevin McCarthy\u003c/a>, which runs through January.\u003c/span>\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>\u003cspan style=\"font-weight: 400\">Fong defeated fellow Republican and Tulare County Sheriff Mike Boudreaux in the 20th Congressional District, in the state’s Central Valley farm belt.\u003c/span>\u003c/p>\n\u003cp>\u003cspan style=\"font-weight: 400\">The two will face off once again in November, but this time, the winner will serve a full two-year term.\u003c/span>\u003c/p>\n\u003ch2>\u003ca href=\"https://www.kqed.org/news/11987167/fate-of-gig-workers-benefits-now-up-to-the-state-supreme-court\">\u003cb>Fate of Gig Workers’ Benefits Now Up to the State Supreme Court\u003c/b>\u003c/a>\u003c/h2>\n\u003cp>\u003cspan style=\"font-weight: 400\">Based on their line of questioning, \u003c/span>\u003ca href=\"https://calmatters.org/economy/2024/05/prop-22-oral-arguments-2/\">\u003cspan style=\"font-weight: 400\">California Supreme Court justices seemed to be reaching for a compromise\u003c/span>\u003c/a>\u003cspan style=\"font-weight: 400\"> as they heard oral arguments Tuesday in the long-running legal saga over whether gig workers should be considered independent contractors or employees.\u003c/span>\u003c/p>\n\u003cp>\u003ca href=\"https://www.kqed.org/news/11843123/prop-22-explained-why-gig-companies-are-spending-huge-money-on-an-unprecedented-measure\">\u003cspan style=\"font-weight: 400\">Proposition 22\u003c/span>\u003c/a>\u003cspan style=\"font-weight: 400\">, the gig industry-backed initiative that 58% of state voters passed in 2020, has been mired in a legal back-and-forth since it became law — including being ruled unconstitutional by a Superior Court judge before being upheld by a state appeals court. Uber, Lyft, DoorDash, Instacart and other companies have used the law to treat their drivers and delivery workers in California as independent contractors, not as employees.\u003c/span>\u003c/p>\n\u003cp>\u003c/p>\n\u003cp>\u003cspan style=\"font-weight: 400\">The specific question before the state’s highest court is whether Prop. 22 conflicts with the state Legislature’s constitutional power to enforce a complete workers’ compensation system.\u003c/span>\u003c/p>\n\n\u003c/div>\u003c/p>",
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"content": "\u003cp>The State Supreme Court today heard a case that could have a profound impact on app-based companies like Uber and Lyft as well as on their drivers. Proposition 22, which was passed by voters four years ago, allowed gig companies to reclassify workers as self-employed contractors, rather than employees. Now the state Supreme Court will decide whether to uphold the law, strike it down or strip out part and leave the rest intact.\u003c/p>\n\u003cp>Scott and Marisa are joined by Brandon Stracener, an attorney in private practice and a senior research fellow at the California Constitution Center at Berkeley Law.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\u003cp>\u003c/p>\n",
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"title": "Gig Companies Spent $200 Million to Write Their Own Labor Law. The State Supreme Court Could Throw It Out",
"headTitle": "Gig Companies Spent $200 Million to Write Their Own Labor Law. The State Supreme Court Could Throw It Out | KQED",
"content": "\u003cp>The California Supreme Court will hear oral arguments next Tuesday in a case that could change the fate of more than 1 million gig workers in the state — and perhaps how we hail rides, order takeout or get groceries delivered.\u003c/p>\n\u003cp>Four years ago, voters approved Proposition 22, a ballot measure sponsored by Uber, Lyft, DoorDash and Instacart that allowed the companies to continue treating their ride-hailing drivers and delivery workers as independent contractors. Proposition 22 was the industry’s response to \u003ca href=\"https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201920200AB5\">Assembly Bill 5\u003c/a>, a state law that codified a state Supreme Court decision that would have required the companies \u003ca href=\"https://calmatters.org/economy/2019/09/whos-in-whos-out-of-ab-5/\">to classify those workers as employees\u003c/a>.\u003c/p>\n\u003cp>Treating gig workers as independent contractors is central to the business model of the California-based companies, the middlemen who gave rise to the on-demand, app-based gig economy that has permeated our culture. The companies are fighting to hang on to that model, saying it helps them provide gig workers with flexible schedules. Critics say it lets the companies avoid paying employment taxes and shift financial responsibility to their workers and customers, plus governments.\u003c/p>\n\u003cp>In 2021, a Superior Court judge \u003ca href=\"https://www.latimes.com/business/story/2021-08-20/prop-22-unconstitutional\">invalidated Proposition 22\u003c/a>, saying it limits the Legislature’s constitutional power to create and enforce a complete workers’ compensation system because it declares gig workers independent contractors ineligible for the benefit. While the state Supreme Court will be considering this narrow issue, because of a clause in the initiative, it’s possible the whole law will be thrown out because of it.\u003c/p>\n\u003cp>The gig companies appealed the judge’s decision, and a state appeals court ruled 2 to 1 \u003ca href=\"https://calmatters.org/economy/2023/03/prop-22-appeal/\">in their favor\u003c/a> last year. SEIU California then appealed that decision, and the state’s highest court agreed to hear the case.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>\u003ca href=\"https://calmatters.org/economy/2020/11/after-gig-companies-prop-22-win-labor-groups-vow-challenges/\">Fifty-eight percent of voters passed Proposition 22\u003c/a> after gig companies spent more than $200 million on the campaign. After it became law, app-based platform workers became eligible for some benefits, such as guaranteed weekly earnings of 120% of minimum wage, health care stipends, and occupational accident and accidental death insurance.\u003c/p>\n\u003cp>Although industry-backed polls show many gig workers voted for Proposition 22 and have benefited from some of its provisions, gig workers continue to complain about their pay and working conditions.\u003c/p>\n\u003cp>In April, \u003ca href=\"https://missionlocal.org/2024/04/uber-lyft-drivers-rally-at-mission-safeway-to-demand-higher-pay/\">drivers protested, as they have many times\u003c/a>, at Uber and Lyft headquarters in San Francisco. They said they were there because of low wages, safety concerns and “\u003ca href=\"https://www.marketwatch.com/story/uber-and-lyft-drivers-are-facing-discrimination-from-customers-and-getting-banned-from-the-apps-report-finds-5b6513dc\">deactivations\u003c/a>” — getting kicked off the apps and losing their ability to work, sometimes suddenly and without knowing why.\u003c/p>\n\u003cp>“It’s hard for drivers to make ends meet,” said Cesar Palancares, a field organizer for Bay Area-based worker-advocacy groups Gig Workers Rising and Working Partnerships USA, and a leader of the protests. Nowadays, he said, “Drivers often have to work 12 hours to earn what they used to earn working six or seven hours.”\u003c/p>\n\u003cp>Palancares said pay is still low because workers’ eligibility for the earnings guarantee is based on the time they agree to take on a gig and the time they spend on that ride or delivery, but not on the time they spend waiting for a gig.\u003c/p>\n\u003cp>Los Angeles-based Rideshare Drivers United is so concerned about gig-worker pay that it plans to push for pay standards, like those in \u003ca href=\"https://www.vox.com/2018/12/5/18127208/new-york-uber-lyft-minimum-wage\">New York City\u003c/a> and \u003ca href=\"https://www.marketwatch.com/story/uber-and-lyft-get-their-first-legislative-win-in-campaign-to-write-new-labor-laws-11648820705\">Seattle\u003c/a>, even if Proposition 22 is overturned.\u003c/p>\n\u003cp>“We want to build pay regulation on top of labor rights, specifically catering to how we work in this industry,” said Nicole Moore, president of Rideshare Drivers United, which plans to advocate for legislation or ordinances that would establish a rate card with a minimum rate based on miles and minutes driven.\u003c/p>\n\u003cp>“What we’ve learned from NYC is you can set a rate card, and you can have data from the companies that ensures that pay is high enough so your expenses are being covered,” Moore said.\u003c/p>\n\u003cp>The gig industry’s current estimates for average worker earnings differ widely from labor groups’ estimates: A DoorDash spokesperson said delivery workers’ average earnings were $36 an hour last year; an Uber spokesperson said its drivers’ average earnings were $33 “per utilized hour” as of the fourth quarter of last year. Industry-wide, Molly Weedn, a spokesperson for Protect App-Based Drivers + Services, said that in 2022, California drivers earned an average of $34.46 per “active hour,” including tips, an increase of 26% compared with pre-Proposition 22 times.\u003c/p>\n\u003cp>However, labor groups and academics have long disputed those figures, including in the legal briefs they submitted before the Supreme Court hearing because companies do not count the time gig workers wait for an actual ride or delivery. They also say the industry figures don’t factor in workers’ costs for fuel, maintaining their vehicles, health care costs — not all gig workers are eligible for the stipends — and more. A study by National Equity Atlas and others, done in 2021 after Proposition 22 took effect, found that the workers’ average earnings were \u003ca href=\"https://nationalequityatlas.org/prop22-paystudy\">as little as $6.20 an hour\u003c/a>.\u003c/p>\n\u003ch3>Oral arguments’ focus\u003c/h3>\n\u003cp>The SEIU and the four gig-worker plaintiffs will argue that the state constitution grants the Legislature “unlimited power to enforce a complete workers’ compensation system.” The Legislature already spoke when it passed AB 5, they say. So they contend that “the Legislature’s exercise of that power can be withdrawn only by a constitutional amendment.”\u003c/p>\n\u003cp>The interveners and appellants — the gig companies and the state, which is required to defend the law — will argue that the Legislature’s “plenary,” or absolute, power over workers’ comp is not exclusive. And they will say no subject is beyond the scope of the initiative process.[aside tag=\"gig-workers\" label=\"More Related Stories\"]\u003c/p>\n\u003cp>“The legal issue is actually pretty straightforward,” said Kurt Oneto, a lawyer for the gig companies. Oneto said a constitutional amendment adopted by California voters in 1918 that gave the Legislature power over workers’ comp “unlimited by any provision” in the constitution was “only enacted to prevent courts from invalidating workers’ comp” — not to limit voters’ power over it.\u003c/p>\n\u003cp>This decision could set a national precedent in the nagging issue of worker classification. So, despite the narrow focus of what the Supreme Court is set to consider, a wide array of legal briefs in the case rehash the pros and cons of the gig economy.\u003c/p>\n\u003ch3>Proposition 22 proponents’ arguments\u003c/h3>\n\u003cp>Those urging the court to uphold Proposition 22 stress that the Legislature doesn’t have exclusive reign over workers’ comp. They say the people — through the ballot initiative — have just as much say. They also say the gig economy helps marginalized workers and communities.\u003c/p>\n\u003cul>\n\u003cli>\u003cstrong>Former state Sens. Robert Timothy Leslie and Stephen James Peace:\u003c/strong> Based on their experience as lawmakers, they say “the state Legislature is far from powerless when it comes to amending an initiative” and that lawmakers can amend Proposition 22 if they want.\u003c/li>\n\u003cli>\u003cstrong>David A. Carrillo and Stephen M. Duvernay (California constitution scholars):\u003c/strong> “Excluding workers’ compensation (or any subject) would partly invalidate the electorate’s lawmaking power by creating a new subject matter exemption from the initiative.”\u003c/li>\n\u003cli>\u003cstrong>Crum & Forster, a holding company of various insurance underwriting companies:\u003c/strong> Occupational accident insurance, which is based on individual use, is cheaper to provide than full workers’ comp, which is charged per employee and based on a formula. The former makes more sense for gig workers because many of them work part time. “Because the risks confronted by app-based drivers are few and easily defined, premiums need not reflect potential exposure to the myriad risks confronted by employees working in offices, factories, warehouses, agriculture, and other occupations.”\u003c/li>\n\u003cli>\u003cstrong>Independent Drivers Alliance of California:\u003c/strong> This group of 400 gig workers said the benefits under Proposition 22 are “something that many of them have come to expect and even need.”\u003c/li>\n\u003cli>\u003cstrong>Citizens in Charge and The Initiative and Referendum Institute at the University of Southern California:\u003c/strong> “Large corporations are not the only type of special interest that can forestall the will of the People.” They say the SEIU is a special interest that influenced the Legislature to pass AB 5.\u003c/li>\n\u003cli>\u003cstrong>California Asian Pacific Chamber of Commerce, California Hispanic Chambers of Commerce, NAACP California Hawaii State Conference, National Action Network Los Angeles, National Action Network Sacramento Chapter Inc., and National Diversity Coalition:\u003c/strong> The independent contractor model provides not just marginalized workers with earning opportunities, it also helps “the provision of transportation, food, and delivery services to communities of color that have been historically underserved.” If Proposition 22 is overturned, they say gig companies will reduce the number of gig workers on their platforms, and there will be fewer earning opportunities for “communities of color,” which, according to a Pew survey, are “more likely to have earned money in the gig economy than White counterparts.”\u003c/li>\n\u003c/ul>\n\u003ch3>Proposition 22 opponents’ arguments\u003c/h3>\n\u003cp>[ad floatright]\u003c/p>\n\u003cp>Those asking the court to declare the law unconstitutional warn of a slippery slope. They say allowing corporations to carve out their own labor laws could lead to a continued gig-ification of work in other industries, which will affect not just the workers who will largely be without a safety net but also the government and the rest of society.\u003c/p>\n\u003cul>\n\u003cli>\u003cstrong>State Sen. \u003ca href=\"https://digitaldemocracy.calmatters.org/legislators/dave-cortese-164699?_gl=1*1ifamyu*_ga*Nzg1MzMzODU1LjE3MTM3MDc0MDU.*_ga_5TKXNLE5NK*MTcxNTg4MzAwNS4zLjEuMTcxNTg4MzM0MS41MC4wLjA.*_ga_GNY4L81DZE*MTcxNTg4MzAwNS4yLjAuMTcxNTg4MzAwNS4wLjAuMA..\">Dave Cortese\u003c/a> and Assemblymember \u003ca href=\"https://digitaldemocracy.calmatters.org/legislators/liz-ortega-165416?_gl=1*1ifamyu*_ga*Nzg1MzMzODU1LjE3MTM3MDc0MDU.*_ga_5TKXNLE5NK*MTcxNTg4MzAwNS4zLjEuMTcxNTg4MzM0MS41MC4wLjA.*_ga_GNY4L81DZE*MTcxNTg4MzAwNS4yLjAuMTcxNTg4MzAwNS4wLjAuMA..\">Liz Ortega\u003c/a>:\u003c/strong> The “minimal insurance benefits” offered by Proposition 22 — occupational accident insurance and accidental death insurance — are not a complete workers’ comp system, and “the wholesale removal of app-based drivers from the system established by the Legislature over the past century runs contrary” to the power the state constitution gives lawmakers to enforce a complete workers’ comp system.\u003c/li>\n\u003cli>\u003cstrong>California Applicants’ Attorneys Association:\u003c/strong> The group also said the occupational accident insurance offered under Proposition 22 is limited compared to what workers’ comp offers: medical treatment; temporary or permanent payments depending on the injury; and supplemental job retraining benefits. “The likely result is more injured app-based drivers will seek benefits through public systems” like state or federal disability systems.\u003c/li>\n\u003cli>\u003cstrong>City and County of San Francisco, the City of Oakland, the City of San Diego, and the County of Santa Clara:\u003c/strong> “The wholesale elimination of worker protection laws (including minimum wage protections for all hours worked, overtime, and expense reimbursement laws) can mean the difference between needing to visit a food pantry or not.” The municipalities say they administer such programs, and therefore taxpayers end up subsidizing “what the law asks employers to contribute through wages and benefits.”\u003c/li>\n\u003cli>\u003cstrong>Law professors Sameer Ashar, Veena Dubal, Catherine Fisk, Charlotte Garden, Joseph Grodin, William B. Gould IV, Stephen Lee, Leticia Saucedo, Reuel Schiller, Katherine Stone, and Noah D. Zatz:\u003c/strong> This group writes that the law lacks a “provision for an administrative body or system to adjudicate claims or disputes. Instead, as is well-known, they are consigned to asserting their claims in the companies’ secret arbitration system.”\u003c/li>\n\u003cli>\u003cstrong>National Employment Law Project, California Labor Federation, Rideshare Drivers United, Gig Workers Rising, Asian Americans Advancing Justice – Asian Law Caucus, Asian Americans Advancing Justice Southern California, PowerSwitch Action, Worksafe, Action Center on Race & the Economy, the Economic Policy Institute, Bet Tzedek, and the California Immigrant Policy Center:\u003c/strong> Gig workers have few legal protections against opaque, “powerful, algorithmically-driven pay systems, and ‘the possibility remains,’ in the words of one scholar, that on-demand companies… (are offering) vulnerable workers lower wages based on their willingness to accept work at lower prices.” They cite a recent Uber earnings call during which its CEO said the company is “offering the right trip at the right price to the right driver.” Along the same lines, the fact that gig workers are from marginalized groups and communities is unsurprising; they say: “It is no accident that Prop. 22 reinforces and legalizes a second-tier workforce (composed) disproportionately of people of color.” They also cite federal data that shows app-based driving is “one of the most dangerous jobs in America” that includes risks of violence, harassment, injuries and even death on the job.\u003c/li>\n\u003cli>\u003cstrong>Teamsters Locals 396, 542 and 848 and Los Angeles County Federation of Labor, AFL-CIO:\u003c/strong> “Already, a growing number of secure jobs across the state are being replaced by app-based drivers — including jobs where Amici Curiae have fought for decades to ensure a living wage and strong benefits.” Those include delivery drivers formerly \u003ca href=\"https://www.marketwatch.com/story/the-rise-of-the-gig-economy-spells-the-end-for-these-workers-were-the-vestiges-of-the-old-system-11626283673\">employed by Albertsons\u003c/a>.\u003c/li>\n\u003c/ul>\n\n",
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"excerpt": "If Proposition 22 is thrown out, Uber, Lyft, DoorDash and Instacart’s classification of gig workers as independent contractors would be in danger — upending the gig economy.",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003cp>The California Supreme Court will hear oral arguments next Tuesday in a case that could change the fate of more than 1 million gig workers in the state — and perhaps how we hail rides, order takeout or get groceries delivered.\u003c/p>\n\u003cp>Four years ago, voters approved Proposition 22, a ballot measure sponsored by Uber, Lyft, DoorDash and Instacart that allowed the companies to continue treating their ride-hailing drivers and delivery workers as independent contractors. Proposition 22 was the industry’s response to \u003ca href=\"https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201920200AB5\">Assembly Bill 5\u003c/a>, a state law that codified a state Supreme Court decision that would have required the companies \u003ca href=\"https://calmatters.org/economy/2019/09/whos-in-whos-out-of-ab-5/\">to classify those workers as employees\u003c/a>.\u003c/p>\n\u003cp>Treating gig workers as independent contractors is central to the business model of the California-based companies, the middlemen who gave rise to the on-demand, app-based gig economy that has permeated our culture. The companies are fighting to hang on to that model, saying it helps them provide gig workers with flexible schedules. Critics say it lets the companies avoid paying employment taxes and shift financial responsibility to their workers and customers, plus governments.\u003c/p>\n\u003cp>In 2021, a Superior Court judge \u003ca href=\"https://www.latimes.com/business/story/2021-08-20/prop-22-unconstitutional\">invalidated Proposition 22\u003c/a>, saying it limits the Legislature’s constitutional power to create and enforce a complete workers’ compensation system because it declares gig workers independent contractors ineligible for the benefit. While the state Supreme Court will be considering this narrow issue, because of a clause in the initiative, it’s possible the whole law will be thrown out because of it.\u003c/p>\n\u003cp>The gig companies appealed the judge’s decision, and a state appeals court ruled 2 to 1 \u003ca href=\"https://calmatters.org/economy/2023/03/prop-22-appeal/\">in their favor\u003c/a> last year. SEIU California then appealed that decision, and the state’s highest court agreed to hear the case.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>\u003ca href=\"https://calmatters.org/economy/2020/11/after-gig-companies-prop-22-win-labor-groups-vow-challenges/\">Fifty-eight percent of voters passed Proposition 22\u003c/a> after gig companies spent more than $200 million on the campaign. After it became law, app-based platform workers became eligible for some benefits, such as guaranteed weekly earnings of 120% of minimum wage, health care stipends, and occupational accident and accidental death insurance.\u003c/p>\n\u003cp>Although industry-backed polls show many gig workers voted for Proposition 22 and have benefited from some of its provisions, gig workers continue to complain about their pay and working conditions.\u003c/p>\n\u003cp>In April, \u003ca href=\"https://missionlocal.org/2024/04/uber-lyft-drivers-rally-at-mission-safeway-to-demand-higher-pay/\">drivers protested, as they have many times\u003c/a>, at Uber and Lyft headquarters in San Francisco. They said they were there because of low wages, safety concerns and “\u003ca href=\"https://www.marketwatch.com/story/uber-and-lyft-drivers-are-facing-discrimination-from-customers-and-getting-banned-from-the-apps-report-finds-5b6513dc\">deactivations\u003c/a>” — getting kicked off the apps and losing their ability to work, sometimes suddenly and without knowing why.\u003c/p>\n\u003cp>“It’s hard for drivers to make ends meet,” said Cesar Palancares, a field organizer for Bay Area-based worker-advocacy groups Gig Workers Rising and Working Partnerships USA, and a leader of the protests. Nowadays, he said, “Drivers often have to work 12 hours to earn what they used to earn working six or seven hours.”\u003c/p>\n\u003cp>Palancares said pay is still low because workers’ eligibility for the earnings guarantee is based on the time they agree to take on a gig and the time they spend on that ride or delivery, but not on the time they spend waiting for a gig.\u003c/p>\n\u003cp>Los Angeles-based Rideshare Drivers United is so concerned about gig-worker pay that it plans to push for pay standards, like those in \u003ca href=\"https://www.vox.com/2018/12/5/18127208/new-york-uber-lyft-minimum-wage\">New York City\u003c/a> and \u003ca href=\"https://www.marketwatch.com/story/uber-and-lyft-get-their-first-legislative-win-in-campaign-to-write-new-labor-laws-11648820705\">Seattle\u003c/a>, even if Proposition 22 is overturned.\u003c/p>\n\u003cp>“We want to build pay regulation on top of labor rights, specifically catering to how we work in this industry,” said Nicole Moore, president of Rideshare Drivers United, which plans to advocate for legislation or ordinances that would establish a rate card with a minimum rate based on miles and minutes driven.\u003c/p>\n\u003cp>“What we’ve learned from NYC is you can set a rate card, and you can have data from the companies that ensures that pay is high enough so your expenses are being covered,” Moore said.\u003c/p>\n\u003cp>The gig industry’s current estimates for average worker earnings differ widely from labor groups’ estimates: A DoorDash spokesperson said delivery workers’ average earnings were $36 an hour last year; an Uber spokesperson said its drivers’ average earnings were $33 “per utilized hour” as of the fourth quarter of last year. Industry-wide, Molly Weedn, a spokesperson for Protect App-Based Drivers + Services, said that in 2022, California drivers earned an average of $34.46 per “active hour,” including tips, an increase of 26% compared with pre-Proposition 22 times.\u003c/p>\n\u003cp>However, labor groups and academics have long disputed those figures, including in the legal briefs they submitted before the Supreme Court hearing because companies do not count the time gig workers wait for an actual ride or delivery. They also say the industry figures don’t factor in workers’ costs for fuel, maintaining their vehicles, health care costs — not all gig workers are eligible for the stipends — and more. A study by National Equity Atlas and others, done in 2021 after Proposition 22 took effect, found that the workers’ average earnings were \u003ca href=\"https://nationalequityatlas.org/prop22-paystudy\">as little as $6.20 an hour\u003c/a>.\u003c/p>\n\u003ch3>Oral arguments’ focus\u003c/h3>\n\u003cp>The SEIU and the four gig-worker plaintiffs will argue that the state constitution grants the Legislature “unlimited power to enforce a complete workers’ compensation system.” The Legislature already spoke when it passed AB 5, they say. So they contend that “the Legislature’s exercise of that power can be withdrawn only by a constitutional amendment.”\u003c/p>\n\u003cp>The interveners and appellants — the gig companies and the state, which is required to defend the law — will argue that the Legislature’s “plenary,” or absolute, power over workers’ comp is not exclusive. And they will say no subject is beyond the scope of the initiative process.\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>“The legal issue is actually pretty straightforward,” said Kurt Oneto, a lawyer for the gig companies. Oneto said a constitutional amendment adopted by California voters in 1918 that gave the Legislature power over workers’ comp “unlimited by any provision” in the constitution was “only enacted to prevent courts from invalidating workers’ comp” — not to limit voters’ power over it.\u003c/p>\n\u003cp>This decision could set a national precedent in the nagging issue of worker classification. So, despite the narrow focus of what the Supreme Court is set to consider, a wide array of legal briefs in the case rehash the pros and cons of the gig economy.\u003c/p>\n\u003ch3>Proposition 22 proponents’ arguments\u003c/h3>\n\u003cp>Those urging the court to uphold Proposition 22 stress that the Legislature doesn’t have exclusive reign over workers’ comp. They say the people — through the ballot initiative — have just as much say. They also say the gig economy helps marginalized workers and communities.\u003c/p>\n\u003cul>\n\u003cli>\u003cstrong>Former state Sens. Robert Timothy Leslie and Stephen James Peace:\u003c/strong> Based on their experience as lawmakers, they say “the state Legislature is far from powerless when it comes to amending an initiative” and that lawmakers can amend Proposition 22 if they want.\u003c/li>\n\u003cli>\u003cstrong>David A. Carrillo and Stephen M. Duvernay (California constitution scholars):\u003c/strong> “Excluding workers’ compensation (or any subject) would partly invalidate the electorate’s lawmaking power by creating a new subject matter exemption from the initiative.”\u003c/li>\n\u003cli>\u003cstrong>Crum & Forster, a holding company of various insurance underwriting companies:\u003c/strong> Occupational accident insurance, which is based on individual use, is cheaper to provide than full workers’ comp, which is charged per employee and based on a formula. The former makes more sense for gig workers because many of them work part time. “Because the risks confronted by app-based drivers are few and easily defined, premiums need not reflect potential exposure to the myriad risks confronted by employees working in offices, factories, warehouses, agriculture, and other occupations.”\u003c/li>\n\u003cli>\u003cstrong>Independent Drivers Alliance of California:\u003c/strong> This group of 400 gig workers said the benefits under Proposition 22 are “something that many of them have come to expect and even need.”\u003c/li>\n\u003cli>\u003cstrong>Citizens in Charge and The Initiative and Referendum Institute at the University of Southern California:\u003c/strong> “Large corporations are not the only type of special interest that can forestall the will of the People.” They say the SEIU is a special interest that influenced the Legislature to pass AB 5.\u003c/li>\n\u003cli>\u003cstrong>California Asian Pacific Chamber of Commerce, California Hispanic Chambers of Commerce, NAACP California Hawaii State Conference, National Action Network Los Angeles, National Action Network Sacramento Chapter Inc., and National Diversity Coalition:\u003c/strong> The independent contractor model provides not just marginalized workers with earning opportunities, it also helps “the provision of transportation, food, and delivery services to communities of color that have been historically underserved.” If Proposition 22 is overturned, they say gig companies will reduce the number of gig workers on their platforms, and there will be fewer earning opportunities for “communities of color,” which, according to a Pew survey, are “more likely to have earned money in the gig economy than White counterparts.”\u003c/li>\n\u003c/ul>\n\u003ch3>Proposition 22 opponents’ arguments\u003c/h3>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>Those asking the court to declare the law unconstitutional warn of a slippery slope. They say allowing corporations to carve out their own labor laws could lead to a continued gig-ification of work in other industries, which will affect not just the workers who will largely be without a safety net but also the government and the rest of society.\u003c/p>\n\u003cul>\n\u003cli>\u003cstrong>State Sen. \u003ca href=\"https://digitaldemocracy.calmatters.org/legislators/dave-cortese-164699?_gl=1*1ifamyu*_ga*Nzg1MzMzODU1LjE3MTM3MDc0MDU.*_ga_5TKXNLE5NK*MTcxNTg4MzAwNS4zLjEuMTcxNTg4MzM0MS41MC4wLjA.*_ga_GNY4L81DZE*MTcxNTg4MzAwNS4yLjAuMTcxNTg4MzAwNS4wLjAuMA..\">Dave Cortese\u003c/a> and Assemblymember \u003ca href=\"https://digitaldemocracy.calmatters.org/legislators/liz-ortega-165416?_gl=1*1ifamyu*_ga*Nzg1MzMzODU1LjE3MTM3MDc0MDU.*_ga_5TKXNLE5NK*MTcxNTg4MzAwNS4zLjEuMTcxNTg4MzM0MS41MC4wLjA.*_ga_GNY4L81DZE*MTcxNTg4MzAwNS4yLjAuMTcxNTg4MzAwNS4wLjAuMA..\">Liz Ortega\u003c/a>:\u003c/strong> The “minimal insurance benefits” offered by Proposition 22 — occupational accident insurance and accidental death insurance — are not a complete workers’ comp system, and “the wholesale removal of app-based drivers from the system established by the Legislature over the past century runs contrary” to the power the state constitution gives lawmakers to enforce a complete workers’ comp system.\u003c/li>\n\u003cli>\u003cstrong>California Applicants’ Attorneys Association:\u003c/strong> The group also said the occupational accident insurance offered under Proposition 22 is limited compared to what workers’ comp offers: medical treatment; temporary or permanent payments depending on the injury; and supplemental job retraining benefits. “The likely result is more injured app-based drivers will seek benefits through public systems” like state or federal disability systems.\u003c/li>\n\u003cli>\u003cstrong>City and County of San Francisco, the City of Oakland, the City of San Diego, and the County of Santa Clara:\u003c/strong> “The wholesale elimination of worker protection laws (including minimum wage protections for all hours worked, overtime, and expense reimbursement laws) can mean the difference between needing to visit a food pantry or not.” The municipalities say they administer such programs, and therefore taxpayers end up subsidizing “what the law asks employers to contribute through wages and benefits.”\u003c/li>\n\u003cli>\u003cstrong>Law professors Sameer Ashar, Veena Dubal, Catherine Fisk, Charlotte Garden, Joseph Grodin, William B. Gould IV, Stephen Lee, Leticia Saucedo, Reuel Schiller, Katherine Stone, and Noah D. Zatz:\u003c/strong> This group writes that the law lacks a “provision for an administrative body or system to adjudicate claims or disputes. Instead, as is well-known, they are consigned to asserting their claims in the companies’ secret arbitration system.”\u003c/li>\n\u003cli>\u003cstrong>National Employment Law Project, California Labor Federation, Rideshare Drivers United, Gig Workers Rising, Asian Americans Advancing Justice – Asian Law Caucus, Asian Americans Advancing Justice Southern California, PowerSwitch Action, Worksafe, Action Center on Race & the Economy, the Economic Policy Institute, Bet Tzedek, and the California Immigrant Policy Center:\u003c/strong> Gig workers have few legal protections against opaque, “powerful, algorithmically-driven pay systems, and ‘the possibility remains,’ in the words of one scholar, that on-demand companies… (are offering) vulnerable workers lower wages based on their willingness to accept work at lower prices.” They cite a recent Uber earnings call during which its CEO said the company is “offering the right trip at the right price to the right driver.” Along the same lines, the fact that gig workers are from marginalized groups and communities is unsurprising; they say: “It is no accident that Prop. 22 reinforces and legalizes a second-tier workforce (composed) disproportionately of people of color.” They also cite federal data that shows app-based driving is “one of the most dangerous jobs in America” that includes risks of violence, harassment, injuries and even death on the job.\u003c/li>\n\u003cli>\u003cstrong>Teamsters Locals 396, 542 and 848 and Los Angeles County Federation of Labor, AFL-CIO:\u003c/strong> “Already, a growing number of secure jobs across the state are being replaced by app-based drivers — including jobs where Amici Curiae have fought for decades to ensure a living wage and strong benefits.” Those include delivery drivers formerly \u003ca href=\"https://www.marketwatch.com/story/the-rise-of-the-gig-economy-spells-the-end-for-these-workers-were-the-vestiges-of-the-old-system-11626283673\">employed by Albertsons\u003c/a>.\u003c/li>\n\u003c/ul>\n\n\u003c/div>\u003c/p>",
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"content": "\u003cp>A proposal to spread the gig economy to health care could be on the ballot this fall. A group calling itself Californians for Equitable Healthcare Access has filed a measure to classify nurses, dental hygienists, occupational therapists and other health care workers who find work online as independent contractors.\u003c/p>\n\u003cp>The law firm that submitted this proposal also worked on Proposition 22, which allowed companies to make app-based drivers independent contractors, instead of employees with benefits like health insurance. Prop. 22 passed overwhelmingly — thanks in large part to the hundreds of millions of dollars that gig companies like Uber spent on it. So could it happen again, but with health care?\u003c/p>\n\u003cp>\u003cb>Guest: \u003c/b>\u003cspan style=\"font-weight: 400\">\u003ca href=\"https://twitter.com/levisu\">Levi Sumagaysay\u003c/a>, MarketWatch senior reporter\u003c/span>\u003c/p>\n\u003cp>\u003cb>Links:\u003c/b>\u003c/p>\n\u003cul>\n\u003cli>\u003ca href=\"https://www.kqed.org/news/11847273/with-prop-22-approved-regulating-gig-companies-just-got-a-lot-harder\">With Prop. 22 Approved, Regulating Gig Companies Just Got A Lot Harder\u003c/a>\u003c/li>\n\u003cli>\n\u003cp class=\"article__headline\">\u003ca href=\"https://www.marketwatch.com/story/uber-for-nurses-initiative-targets-healthcare-for-a-gig-work-law-11643404860\">‘Uber for nurses?’: Initiative targets healthcare for a ‘gig work’ law\u003c/a>\u003c/p>\n\u003c/li>\n\u003c/ul>\n\u003cp> \u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\u003cp>\u003c/p>\n",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003cp>A proposal to spread the gig economy to health care could be on the ballot this fall. A group calling itself Californians for Equitable Healthcare Access has filed a measure to classify nurses, dental hygienists, occupational therapists and other health care workers who find work online as independent contractors.\u003c/p>\n\u003cp>The law firm that submitted this proposal also worked on Proposition 22, which allowed companies to make app-based drivers independent contractors, instead of employees with benefits like health insurance. Prop. 22 passed overwhelmingly — thanks in large part to the hundreds of millions of dollars that gig companies like Uber spent on it. So could it happen again, but with health care?\u003c/p>\n\u003cp>\u003cb>Guest: \u003c/b>\u003cspan style=\"font-weight: 400\">\u003ca href=\"https://twitter.com/levisu\">Levi Sumagaysay\u003c/a>, MarketWatch senior reporter\u003c/span>\u003c/p>\n\u003cp>\u003cb>Links:\u003c/b>\u003c/p>\n\u003cul>\n\u003cli>\u003ca href=\"https://www.kqed.org/news/11847273/with-prop-22-approved-regulating-gig-companies-just-got-a-lot-harder\">With Prop. 22 Approved, Regulating Gig Companies Just Got A Lot Harder\u003c/a>\u003c/li>\n\u003cli>\n\u003cp class=\"article__headline\">\u003ca href=\"https://www.marketwatch.com/story/uber-for-nurses-initiative-targets-healthcare-for-a-gig-work-law-11643404860\">‘Uber for nurses?’: Initiative targets healthcare for a ‘gig work’ law\u003c/a>\u003c/p>\n\u003c/li>\n\u003c/ul>\n\u003cp> \u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cp>A judge Friday struck down a California ballot measure that exempted Uber and other app-based ride-hailing and delivery services from a state law requiring drivers to be classified as employees eligible for benefits and job protections.\u003c/p>\n\u003cp>Alameda County Superior Court Judge Frank Roesch ruled that Proposition 22 was unconstitutional.[aside postID=\"news_11842964\" label=\"More Prop. 22 coverage\"]\u003c/p>\n\u003cp>Voters approved the measure in November after Uber, Lyft and other services spent $200 million in its favor, making it the most expensive ballot measure in state history.\u003c/p>\n\u003cp>Uber said it planned to appeal, setting up a fight that could likely end up in the California Supreme Court.\u003c/p>\n\u003cp>“This ruling ignores the will of the overwhelming majority of California voters and defies both logic and the law,” company spokesperson Noah Edwardsen said. “You don’t have to take our word for it: California’s attorney general strongly defended Proposition 22’s constitutionality in this very case.”\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>He said the measure will remain in force pending the appeal.\u003c/p>\n\u003cp>The judge sided with three drivers and the Service Employees International Union in a lawsuit that argued the measure improperly removed the state Legislature’s ability to grant workers the right to access to the state workers’ compensation program.\u003c/p>\n\u003cp>https://twitter.com/LorenaSGonzalez/status/1428912910793723905\u003c/p>\n\u003cp> \u003c/p>\n\u003cp>“For two years, drivers have been saying that democracy cannot be bought. And today’s decision shows they were right,” said Bob Schoonover, president of the SEIU California State Council.[aside postID=\"news_11843123\" label=\"An explainer on Prop. 22\"]\u003c/p>\n\u003cp>Proposition 22 shielded app-based ride-hailing and delivery companies from a labor law that required such services to treat drivers as employees and not independent contractors, who don’t have to receive benefits such as paid sick leave or unemployment insurance.\u003c/p>\n\u003cp>Uber and Lyft threatened to leave the state if voters rejected the measure.\u003c/p>\n\u003cp>Labor spent about $20 million to challenge the proposition.\u003c/p>\n\u003cp>\u003c/p>\n\u003cp>The state Supreme Court initially declined to hear the case in February — mainly on procedural grounds — but left open the possibility of a lower court challenge.\u003c/p>\n\n",
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"content": "\u003cp>For almost a decade, on-demand services like Lyft, DoorDash and Instacart have allowed customers to rate and tip workers with just the tap of a finger. Even though it has been almost a decade, we still have no idea how much this allows customer bias to hurt Black and brown workers.\u003c/p>\n\u003cp>While rating workers on an app is new, it’s just the latest system companies have devised to allow customers to impact pay or promotions. If their ratings aren’t perfect, workers can lose income, or even their job, and there’s mounting evidence these systems allow bias to hurt workers of color.\u003c/p>\n\u003ch3>How Restaurants Paved the Way\u003c/h3>\n\u003cp>Long before apps entered the picture, tipping established a way for consumer bias to impact worker pay. Michael Lynn, a professor of consumer behavior at Cornell University, said he has long suspected bias influenced tips.\u003c/p>\n\u003cp>“I believe that we have an implicit bias against people of color in this country, and I believe those implicit biases are likely to impact tipping,” Lynn said. But over and over again, he’s come up against a major hurdle in proving it.\u003c/p>\n\u003cp>“I’ve asked a lot of different companies to give me data,” Lynn said. “But there’s no interest on their part in finding out because it doesn’t benefit them. If there is racism, that puts them in a bind, and it’s worse when there is racism and they know about it.”\u003c/p>\n\u003cp>That said, Lynn was able to get some data \u003ca href=\"https://www.wagehourlitigation.com/wp-content/uploads/sites/215/2015/10/cornell.pdf\">to run a small study on waiters\u003c/a> in 2008. He found that customers did indeed give workers of color lower tips.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003ch3>Similar Findings in Other Industries\u003c/h3>\n\u003cp>Studies have consistently shown that\u003ca href=\"https://www.yalelawjournal.org/pdf/207_wd54xsc1.pdf\"> Black, brown and immigrant taxi drivers\u003c/a> get lower tips; and health care, management and sales professionals\u003ca href=\"https://journals.aom.org/doi/abs/10.5465/amj.2010.49388763\"> get more negative customer feedback\u003c/a>.\u003c/p>\n\u003cp>The trend is the same in online reviews: Black and brown professors \u003ca href=\"https://teaching.pitt.edu/wp-content/uploads/2018/12/OMET-Racial_bias_and_student_ratings_of_instructors.pdf\">get worse student evaluations\u003c/a>, while \u003ca href=\"https://news.northeastern.edu/2016/12/06/researchers-find-racial-gender-bias-in-online-freelance-marketplaces/\">freelancers on Fiverr and TaskRabbit get lower reviews\u003c/a>, which means fewer jobs and less money.\u003c/p>\n\u003cp>Customers may not even realize they’re treating Black and brown workers differently, giving them lower tips, leaving less positive feedback or rating them lower on an app. The cause of all this, according to researchers, is implicit or unconscious bias.\u003c/p>\n\u003cp>[aside label=\"Related Stories\" tag=\"gig-economy\"]To fully understand the extent of the problem, researchers would need to look at large data sets and see what different groups of workers were getting tipped and rated. Race is just one possible trait to evaluate for bias. The same problem could exist for gender, age, ability or any category that is regularly discriminated against.\u003c/p>\n\u003cp>But while many companies are resistant to collect or share data along these lines, on-demand service apps like DoorDash and Uber don’t even have to gather worker demographic data.\u003c/p>\n\u003cp>That’s because of the way they classify their workers. App companies call workers contractors instead of employees. The contractor status also protects these on-demand app service companies from liability if is found that customers are discriminating against any of the workers.\u003c/p>\n\u003cp>The news that the app rating system is problematic is far from new. Labor advocates have been warning about it since the apps started. In 2016, there was an entire study done by Data & Society titled “\u003ca href=\"https://datasociety.net/pubs/ia/Discriminating_Tastes_Customer_Ratings_as_Vehicles_for_Bias.pdf\">Discriminating Tastes: Customer Ratings as Vehicles for Bias\u003c/a>,” which was co-authored by Alex Rosenblat, who now works for Uber as the Head of Marketplace Policy, Fairness and Research.\u003c/p>\n\u003ch3>What the Companies Say\u003c/h3>\n\u003cp>KQED reached out to several major app companies: DoorDash, Lyft, Uber and TaskRabbit. Only Lyft and DoorDash responded.\u003c/p>\n\u003cp>DoorDash PR representatives talked about protocols for kicking overtly racist customers off the app, but didn’t mention anything about a system for detecting or addressing implicit bias.\u003c/p>\n\u003cp>A representative from Lyft said the company had commissioned a study to understand the extent of the problem. The PR representative said the company found no evidence of implicit bias in ratings, but it’s not possible to confirm the veracity of this assessment, as the company has not made the results or methodology of the study public.\u003c/p>\n\u003cp>Also Lyft, like many other app companies, does not gather demographic information on workers. Without that data, researchers say it’s impossible to know with certainty how much a rating and/or tip system allows for implicit bias to hurt workers. The companies are in the dark, and so are the workers.\u003c/p>\n\u003cp>Ashley Salas would love to know what led to non-perfect ratings she got delivering for Instacart in San Francisco. After those, she said, everything changed.\u003c/p>\n\u003cp>[pullquote sze='medium' align='right' citation=\"Ashley Salas, Instacart shopper\"]‘It got really, really hard. I went from making $200 a day to struggling to make $100.’[/pullquote]\u003c/p>\n\u003cp>“It got really, really hard. I went from making $200 a day to struggling to make $100,” Salas said.\u003c/p>\n\u003cp>That’s $100 a day before expenses like gas and wear and tear on her car, while she went to school for radiology and took care of her newborn baby.\u003c/p>\n\u003cp>Did she get low ratings because she did something wrong? Were the customers just grumpy? Or did they react negatively to who she is? Salas is part Pacific Islander, part Native American.\u003c/p>\n\u003cp>“It’s kind of a bummer,” Salas said. “I would have wished to know why so I could improve myself.”\u003c/p>\n\u003cp>Frustrated, Salas reached out to Gig Workers Rising, an advocacy group for app workers. Lead organizer Lauren Casey said she has heard this same story again and again from workers of color.\u003c/p>\n\u003cp>Casey said, “Their performance at work is held to a different standard and in turn they receive worse ratings.”\u003c/p>\n\u003cp>A representative from Instacart said it has policies to deal with overt racism, but like other app companies, there’s no mechanism for detecting implicit bias, let alone addressing it.\u003c/p>\n\u003ch3>No Data, No Context\u003c/h3>\n\u003cp>Stanford University law professor Richard Ford said the app rating system has magnified the problem of implicit bias, making it easier for customers to hurt workers and harder for workers to prove it is happening.\u003c/p>\n\u003cp>“You don’t have context, and you don’t have the interpersonal reactions that might give you some clue that the ratings were based on race,” Ford said.\u003c/p>\n\u003cp>All you have is a number, and given our society’s increasing fetishization of data, Ford said a number without context can be very dangerous. “The difference in today’s environment is that it looks more objective. You’re getting, you know, a numerical rating. How could you argue with the numbers?”\u003c/p>\n\u003cp>Even if the ratings are high, it doesn’t mean they are fair. It’s possible that a person of different a race, sex or origin had to work harder to get good ratings.\u003c/p>\n\u003cp>UC Hastings labor law professor Veena Dubal has interviewed more than 100 Lyft and Uber drivers. She said Black and brown drivers often talk about having to perform to make white customers happy.\u003c/p>\n\u003cp>“There’s a lot of emotional labor and a lot of emotional performance that goes into ensuring that you’re not getting poor ratings, because otherwise you’re going to get fired. It’s almost that you have to play into the racial sensibilities of consumers,” Dubal said.\u003c/p>\n\u003cp>Some restaurants pool tips so any negative impacts from implicit bias are shared by the whole staff. App companies could adjust tips and ratings for Black and brown drivers to compensate for bias, but that means first figuring out how much lower they are on average.\u003c/p>\n\u003cp>Thanks to Proposition 22, app companies face no legal pressure to gather the necessary demographic data. Without data, individual workers are left to interpret their own experience, isolated and unprotected.\u003c/p>\n\u003cp>[ad floatright]\u003c/p>\n",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003ch3>Similar Findings in Other Industries\u003c/h3>\n\u003cp>Studies have consistently shown that\u003ca href=\"https://www.yalelawjournal.org/pdf/207_wd54xsc1.pdf\"> Black, brown and immigrant taxi drivers\u003c/a> get lower tips; and health care, management and sales professionals\u003ca href=\"https://journals.aom.org/doi/abs/10.5465/amj.2010.49388763\"> get more negative customer feedback\u003c/a>.\u003c/p>\n\u003cp>The trend is the same in online reviews: Black and brown professors \u003ca href=\"https://teaching.pitt.edu/wp-content/uploads/2018/12/OMET-Racial_bias_and_student_ratings_of_instructors.pdf\">get worse student evaluations\u003c/a>, while \u003ca href=\"https://news.northeastern.edu/2016/12/06/researchers-find-racial-gender-bias-in-online-freelance-marketplaces/\">freelancers on Fiverr and TaskRabbit get lower reviews\u003c/a>, which means fewer jobs and less money.\u003c/p>\n\u003cp>Customers may not even realize they’re treating Black and brown workers differently, giving them lower tips, leaving less positive feedback or rating them lower on an app. The cause of all this, according to researchers, is implicit or unconscious bias.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>To fully understand the extent of the problem, researchers would need to look at large data sets and see what different groups of workers were getting tipped and rated. Race is just one possible trait to evaluate for bias. The same problem could exist for gender, age, ability or any category that is regularly discriminated against.\u003c/p>\n\u003cp>But while many companies are resistant to collect or share data along these lines, on-demand service apps like DoorDash and Uber don’t even have to gather worker demographic data.\u003c/p>\n\u003cp>That’s because of the way they classify their workers. App companies call workers contractors instead of employees. The contractor status also protects these on-demand app service companies from liability if is found that customers are discriminating against any of the workers.\u003c/p>\n\u003cp>The news that the app rating system is problematic is far from new. Labor advocates have been warning about it since the apps started. In 2016, there was an entire study done by Data & Society titled “\u003ca href=\"https://datasociety.net/pubs/ia/Discriminating_Tastes_Customer_Ratings_as_Vehicles_for_Bias.pdf\">Discriminating Tastes: Customer Ratings as Vehicles for Bias\u003c/a>,” which was co-authored by Alex Rosenblat, who now works for Uber as the Head of Marketplace Policy, Fairness and Research.\u003c/p>\n\u003ch3>What the Companies Say\u003c/h3>\n\u003cp>KQED reached out to several major app companies: DoorDash, Lyft, Uber and TaskRabbit. Only Lyft and DoorDash responded.\u003c/p>\n\u003cp>DoorDash PR representatives talked about protocols for kicking overtly racist customers off the app, but didn’t mention anything about a system for detecting or addressing implicit bias.\u003c/p>\n\u003cp>A representative from Lyft said the company had commissioned a study to understand the extent of the problem. The PR representative said the company found no evidence of implicit bias in ratings, but it’s not possible to confirm the veracity of this assessment, as the company has not made the results or methodology of the study public.\u003c/p>\n\u003cp>Also Lyft, like many other app companies, does not gather demographic information on workers. Without that data, researchers say it’s impossible to know with certainty how much a rating and/or tip system allows for implicit bias to hurt workers. The companies are in the dark, and so are the workers.\u003c/p>\n\u003cp>Ashley Salas would love to know what led to non-perfect ratings she got delivering for Instacart in San Francisco. After those, she said, everything changed.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "‘It got really, really hard. I went from making $200 a day to struggling to make $100.’",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>“It got really, really hard. I went from making $200 a day to struggling to make $100,” Salas said.\u003c/p>\n\u003cp>That’s $100 a day before expenses like gas and wear and tear on her car, while she went to school for radiology and took care of her newborn baby.\u003c/p>\n\u003cp>Did she get low ratings because she did something wrong? Were the customers just grumpy? Or did they react negatively to who she is? Salas is part Pacific Islander, part Native American.\u003c/p>\n\u003cp>“It’s kind of a bummer,” Salas said. “I would have wished to know why so I could improve myself.”\u003c/p>\n\u003cp>Frustrated, Salas reached out to Gig Workers Rising, an advocacy group for app workers. Lead organizer Lauren Casey said she has heard this same story again and again from workers of color.\u003c/p>\n\u003cp>Casey said, “Their performance at work is held to a different standard and in turn they receive worse ratings.”\u003c/p>\n\u003cp>A representative from Instacart said it has policies to deal with overt racism, but like other app companies, there’s no mechanism for detecting implicit bias, let alone addressing it.\u003c/p>\n\u003ch3>No Data, No Context\u003c/h3>\n\u003cp>Stanford University law professor Richard Ford said the app rating system has magnified the problem of implicit bias, making it easier for customers to hurt workers and harder for workers to prove it is happening.\u003c/p>\n\u003cp>“You don’t have context, and you don’t have the interpersonal reactions that might give you some clue that the ratings were based on race,” Ford said.\u003c/p>\n\u003cp>All you have is a number, and given our society’s increasing fetishization of data, Ford said a number without context can be very dangerous. “The difference in today’s environment is that it looks more objective. You’re getting, you know, a numerical rating. How could you argue with the numbers?”\u003c/p>\n\u003cp>Even if the ratings are high, it doesn’t mean they are fair. It’s possible that a person of different a race, sex or origin had to work harder to get good ratings.\u003c/p>\n\u003cp>UC Hastings labor law professor Veena Dubal has interviewed more than 100 Lyft and Uber drivers. She said Black and brown drivers often talk about having to perform to make white customers happy.\u003c/p>\n\u003cp>“There’s a lot of emotional labor and a lot of emotional performance that goes into ensuring that you’re not getting poor ratings, because otherwise you’re going to get fired. It’s almost that you have to play into the racial sensibilities of consumers,” Dubal said.\u003c/p>\n\u003cp>Some restaurants pool tips so any negative impacts from implicit bias are shared by the whole staff. App companies could adjust tips and ratings for Black and brown drivers to compensate for bias, but that means first figuring out how much lower they are on average.\u003c/p>\n\u003cp>Thanks to Proposition 22, app companies face no legal pressure to gather the necessary demographic data. Without data, individual workers are left to interpret their own experience, isolated and unprotected.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"disqusTitle": "How Franchising Paved the Way for the Gig Economy",
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"content": "\u003cp>If you walk into a 7-Eleven in California and it’s too hot or cold, don’t blame the franchisee who runs the place. The thermostat is controlled remotely from the company's corporate headquarters in Dallas — as are the store’s hours, prices and the specific kinds of pizza, wings and tacos they can sell.\u003c/p>\n\u003cp>A group of four franchisees in California are involved in an ongoing suit against 7-Eleven over the extent of the company's control, arguing that it's treating them like employees, but classifying them as independent contractors. If they get so little say on how to run their businesses, the franchisees argue, they should at least receive basic employee protections, like overtime pay and workers' compensation.[pullquote align=\"right\" size=\"medium\" citation=\"Serge Haitayan, 7-Eleven franchise owner\"]'I feel like nothing but an unglorified store manager without benefits.'[/pullquote]Much of the lawsuit rests on \u003ca href=\"https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=201920200AB5\">Assembly Bill 5\u003c/a>, the California law intended to make it harder for gig companies like Uber, Lyft and DoorDash to have sway over their workers without providing employee benefits. And while that 2018 law was drafted in response to today’s gig work environment, it was the franchising industry that originally normalized the labor relations on which the “gig economy” is built.\u003c/p>\n\u003cp>In the franchise model, a business owner buys the right to run a store under the franchisor's brand. As part of the deal, the franchisee must follow a set of rules laid out by the parent company.\u003c/p>\n\u003cp>Starting in the 1970s, franchising set a legal precedent for gig companies by helping change the enforcement of U.S. antitrust law, and weakening the labor protections that prevent corporations from misclassifying workers as independent contractors.\u003c/p>\n\u003cp>The link between franchising and gig work was evident in the lead-up to the election in November. When it looked like Proposition 22 — an ultimately successful bid by gig companies to circumvent California's new labor law — could fail, forcing companies to pay for basic employee protections, executives reportedly started \u003ca href=\"https://www.nytimes.com/2020/08/18/technology/uber-lyft-franchise-california.html\">looking into franchising models\u003c/a> as a backup plan.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>But gig companies were already capitalizing on the business framework that decades of franchising has normalized — an ongoing tension reflected in the 7-Eleven lawsuit.\u003c/p>\n\u003ch3>\u003cstrong>Family Business\u003c/strong>\u003c/h3>\n\u003cp>There’s an old 7-Eleven on the outskirts of Fresno with a hot dog sign on the window. It says, “Anyone who is hungry and can't pay for a hot dog can have one for free!” Next to the sign is an illustration of a jolly Lebanese Santa Claus with a big beard, the name “Serge” written across his chest.\u003c/p>\n\u003cfigure id=\"attachment_11862646\" class=\"wp-caption aligncenter\" style=\"max-width: 2560px\">\u003cimg class=\"wp-image-11862646 size-full\" src=\"https://ww2.kqed.org/app/uploads/sites/10/2021/03/Hot-Dog-scaled.jpg\" alt=\"\" width=\"2560\" height=\"1920\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2021/03/Hot-Dog-scaled.jpg 2560w, https://ww2.kqed.org/app/uploads/sites/10/2021/03/Hot-Dog-800x600.jpg 800w, https://ww2.kqed.org/app/uploads/sites/10/2021/03/Hot-Dog-1020x765.jpg 1020w, https://ww2.kqed.org/app/uploads/sites/10/2021/03/Hot-Dog-160x120.jpg 160w, https://ww2.kqed.org/app/uploads/sites/10/2021/03/Hot-Dog-1536x1152.jpg 1536w, https://ww2.kqed.org/app/uploads/sites/10/2021/03/Hot-Dog-2048x1536.jpg 2048w, https://ww2.kqed.org/app/uploads/sites/10/2021/03/Hot-Dog-1920x1440.jpg 1920w, https://ww2.kqed.org/app/uploads/sites/10/2021/03/Hot-Dog-1832x1374.jpg 1832w, https://ww2.kqed.org/app/uploads/sites/10/2021/03/Hot-Dog-1376x1032.jpg 1376w, https://ww2.kqed.org/app/uploads/sites/10/2021/03/Hot-Dog-1044x783.jpg 1044w, https://ww2.kqed.org/app/uploads/sites/10/2021/03/Hot-Dog-632x474.jpg 632w, https://ww2.kqed.org/app/uploads/sites/10/2021/03/Hot-Dog-536x402.jpg 536w\" sizes=\"(max-width: 2560px) 100vw, 2560px\">\u003cfigcaption class=\"wp-caption-text\">The sign on the outside of Serge Haitayan's 7-Eleven store in Fresno. \u003ccite>(KQED/Sam Harnett)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>That's Serge Haitayan, a man in his 60s who has run the franchise for 30 years.\u003c/p>\n\u003cp>“Santa’s beard used to be black” he says. “Now, it’s more grayish.”\u003c/p>\n\u003cp>A refugee from Lebanon, Haitayan came to Los Angeles in the 1980s, and then moved to Fresno — a place he thought would be good to raise a family — where he began running the 7-Eleven store and eventually became a franchise owner.\u003c/p>\n\u003cp>“My kids were raised in the store,” he says. “I used to go pick them up every day after school, and they would stay in this office, and they would do their homework and they would spend the afternoon in the store. I used to have them open the doors for customers and say, ‘Hello. Good afternoon, good evening, welcome to the store.’ ”\u003c/p>\n\u003cp>But Haitayan says ever since the 7-Eleven company was bought by a major Japanese retail firm 16 years ago, the store has felt increasingly less like his own. He says he can’t even control the store temperature himself. He points to the place on the wall where his old thermostat used to be, and describes how a few years ago, a crew from the company came, ripped it out and replaced it with one that is controlled remotely from U.S. corporate headquarters in Dallas.\u003c/p>\n\u003cp>“In what world is that OK for you to live in Dallas and control my temperature here where I am sitting?” he asks. “How do you know my environment? How do you know my body? How do you know everyone else's bodies?”\u003c/p>\n\u003ch3>\u003cstrong>Increasing Control\u003c/strong>\u003c/h3>\n\u003cp>Haitayan says there has always been a struggle over control with 7-Eleven. Franchisees have to sign lengthy contracts, obligating them to comply with even lengthier operations manuals. The company's manual is nearly 1,000 pages long, he says. And 7-Eleven can change the rules in the manual at any time.\u003c/p>\n\u003cp>When he started his franchise back in the 1990s, Haitayan says the company's control was tolerable. But ever since 7-Eleven was bought out, he says, it has increasingly dictated everything from when franchisees can order from vendors to what they can sell.\u003c/p>\n\u003cp>The final straw for Haitayan was a two-pack of batteries.\u003c/p>\n\u003cp>Haitayan says a few years ago he suddenly could only order jumbo packs of 14 or 16 batteries. “This is not Costco. This is not Walmart,” he says. “This is a convenience store.”\u003c/p>\n\u003cp>His customers wanted small packs of batteries, but he says for some reason that inventory had vanished from the system. Over time, the list of products he couldn’t order continued to grow, like certain kinds of sodas, iced teas and cigarettes.\u003c/p>\n\u003cp>7-Eleven did not respond to multiple requests for comment for this story.\u003c/p>\n\u003cp>The company has made other changes in recent years. It installed corporate cameras in franchise stores, raised the maximum share of profits the company can keep from 50% to 59%, and increased the focus on food sales, resulting in higher costs for franchisees because they are responsible for covering payroll and have to hire more employees to prepare the food.\u003c/p>\n\u003cp>For Haitayan, the batteries drove home the reality of how powerless he was. “I feel like nothing but an unglorified store manager without benefits,” he says. So, he joined a handful of other California franchisees in the now more than 3-year-old misclassification lawsuit.\u003c/p>\n\u003cfigure id=\"attachment_11862647\" class=\"wp-caption aligncenter\" style=\"max-width: 1920px\">\u003cimg class=\"wp-image-11862647 size-full\" src=\"https://ww2.kqed.org/app/uploads/sites/10/2021/03/Serge-Out-Front-scaled-e1616018130427.jpg\" alt=\"\" width=\"1920\" height=\"1868\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2021/03/Serge-Out-Front-scaled-e1616018130427.jpg 1920w, https://ww2.kqed.org/app/uploads/sites/10/2021/03/Serge-Out-Front-scaled-e1616018130427-800x778.jpg 800w, https://ww2.kqed.org/app/uploads/sites/10/2021/03/Serge-Out-Front-scaled-e1616018130427-1020x992.jpg 1020w, https://ww2.kqed.org/app/uploads/sites/10/2021/03/Serge-Out-Front-scaled-e1616018130427-160x156.jpg 160w, https://ww2.kqed.org/app/uploads/sites/10/2021/03/Serge-Out-Front-scaled-e1616018130427-1536x1494.jpg 1536w\" sizes=\"(max-width: 1920px) 100vw, 1920px\">\u003cfigcaption class=\"wp-caption-text\">Serge Haitayan outside of his store. \u003ccite>(Sam Harnett/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Jaspreet Dhillon, another 7-Eleven franchisee in Southern California, and a plaintiff in the suit, echoes many of the points made by Haitayan. He says for years he didn’t fight the company's control.\u003c/p>\n\u003cp>“You don’t have time to think,” he says. “You have family, you come home, you’re tired, you rest and the next day you’re up again ready to go again.”\u003c/p>\n\u003cp>But a few years ago he, like Haitayan, reached his breaking point. “I used to love going to the store,” he says. “Now, I dread it.”\u003c/p>\n\u003cp>The franchisees, who filed the suit in federal district court in Los Angeles in 2017, initially lost. But the 9th U.S. Circuit Court of Appeals vacated the lower court's ruling in 2018, determining that the judge made a hasty decision and focused too much on the amount of control detailed in the franchisee agreement, rather than the plaintiffs’ allegations of what was actually happening in their stores.\u003c/p>\n\u003cp>The 7-Eleven decision is now back in a lower federal district court, and a new ruling is expected this month.\u003c/p>\n\u003ch3>\u003cstrong>‘Prehistory of the Gig Economy’\u003c/strong>\u003c/h3>\n\u003cp>Brian Callaci, an economist at Data and Society, a nonprofit that researches technology and regulation, recently released\u003ca href=\"https://datasociety.net/library/puppet-entrepreneurship/\"> a lengthy report\u003c/a> on the current level of corporate control in franchising.\u003c/p>\n\u003cp>“It would be a stretch to call it real independent business ownership,\" says Callaci, who reviewed more than 500 franchise contracts.\u003c/p>\n\u003cp>Although he says 7-Eleven is one of the more overbearing franchises, franchisors in general have moved towards more centralized control.\u003c/p>\n\u003cp>It's not a coincidence that this increase parallels the heightened control in the gig economy, Callaci says, adding that franchising helped lay the legal groundwork for gig companies like Lyft and DoorDash.\u003c/p>\n\u003cp>“The legal history of franchising is very much the prehistory of the gig economy,” he says.\u003c/p>\n\u003cp>[pullquote align=\"right\" size=\"medium\" citation=\"Brian Callaci, economist\"]'The legal history of franchising is very much the prehistory of the gig economy.'[/pullquote]Before the 1970s, regulators were more likely to use antitrust law to try and stop larger corporations from tightly controlling smaller independent businesses, Callaci says. The prospect of corporate domination, he adds, was a bigger factor in assessing and enforcing antitrust violations.\u003c/p>\n\u003cp>But through a series of subsequent court cases, franchisors gained the ability to exert greater control over franchisees. In 1977, they scored a major victory in Continental TV v. GTE Sylvania, in which the U.S. \u003ca href=\"https://www.oyez.org/cases/1976/76-15\">Supreme Court ruled \u003c/a>that large corporations controlling smaller operators, like franchisees, was intrinsic to the American business model.\u003c/p>\n\u003cp>That ruling and others like it changed how antitrust laws were enforced in the U.S. The principles of shareholder capitalism became the guiding ideology, with the focus shifting from trying to prevent the domination of smaller independent businesses and workers to strengthening \"consumer welfare\" and \"economic efficiency.\"\u003c/p>\n\u003ch3>\u003cstrong>Squeezed Out\u003c/strong>\u003c/h3>\n\u003cp>Today, there are some 770,000 franchisees in America. Many are immigrants or people of color who had to scrape together money from friends and family to pay the franchise fee required to enter the business. For prime 7-Eleven locations in California, that can amount to hundreds of thousands of dollars.\u003c/p>\n\u003cp>Dhillon says 7-Eleven promises true business ownership, the American dream. “They paint a rosy picture, but then when you get in you find it’s a different reality.”\u003c/p>\n\u003cp>Once franchisees get into the business, it’s hard to get out. For one, most franchisees do not own their property. That means if they lose the right to the franchise, they lose their business and their investment, which could mean sacrificing the entire franchise fee.\u003c/p>\n\u003cp>Haitayan says the power 7-Eleven has over franchisees keeps many of them from speaking up. He hasn’t kept quiet, though.\u003c/p>\n\u003cp>Haitayan has been involved in several lawsuits against 7-Eleven in recent years, including one over the installation of cameras in stores, which franchisees eventually accepted in a settlement.\u003c/p>\n\u003cp>[aside label=\"related coverage\" tag=\"proposition-22\"]Last fall, on Haitayan’s 30th anniversary owning his franchise, he says the company sent him a letter informing him they weren’t renewing the lease and were closing the store.\u003c/p>\n\u003cp>Haitayan says the store was doing well and he could see no financial reason for to close it down. “Beside saying, ‘We want to teach every franchisee a lesson, that the moment you stand up to 7-Eleven and you create problems and you challenge them and you take them to court, this is what is going to end up happening to you,’ ” he says.\u003c/p>\n\u003cp>But Haitayan is relatively lucky. Unlike most other 7-Eleven franchisees, he owns his property, which means he was able to reopen it as his own store under a different name. But he says because 7-Eleven neglected to do maintenance for years, he had to spend over a quarter million dollars on renovations.\u003c/p>\n\u003cp>Even though he's opening his own store, he plans to remain involved in the current lawsuit.\u003c/p>\n\u003cp>“My fight is still with franchisees and with all the new economy gig employees,” he says, “because they’re not treated fair.”\u003c/p>\n\u003cp>Haitayan says franchisees and gig workers are in a similar boat because they’re both fighting against companies that he says are taking excessive control over workers without having to provide basic benefits. He says American workers should either be granted employee protections or true independence.\u003c/p>\n\u003ch3>\u003cstrong>From Franchising to Gig Platforms\u003c/strong>\u003c/h3>\n\u003cp>Today's franchisors and gig companies have both benefited heartily from the decreasing focus on corporate domination in antitrust enforcement.\u003c/p>\n\u003cp>With the development of apps, gig companies have gone a step further than the franchise model. Instead of requiring franchisees to buy into the brand to run their own business, gig workers sign up on their platforms to do piecemeal gigs. This \"platform argument\" has been key to how many gig companies justify their employment practices to regulators.\u003c/p>\n\u003cp>Gig company executives and their legal teams consistently argue they are not running taxi or delivery businesses, but instead tech companies that have created platforms to connect consumers to independent service providers. Under this platform argument, Uber drivers, Instacart grocery shoppers or DoorDash deliverers are not employees, but rather entrepreneurs running their own businesses.\u003c/p>\n\u003cp>This argument has been very successful, largely because of the way the U.S. now enforces antitrust law, says University of Utah economist Marshall Steinbaum.\u003c/p>\n\u003cp>“The business model of gig companies is dependent on the weakening of antitrust,” says Steinbaum, who\u003ca href=\"https://marshallsteinbaum.org/assets/steinbaum-2019-antitrust-the-gig-economy-and-labor-market-power-law-and-contemporary-problems-.pdf\"> published a paper\u003c/a> on the issue.\u003c/p>\n\u003cp>If regulators enforced antitrust law the way they used to, Steinbaum says, gig companies would risk being sued for how much they control their supposedly independent contractors. They would be encouraged to classify their workers as employees so that they could continue setting prices and controlling the interaction between independent workers and customers, things that could have triggered antitrust enforcement in the past.\u003c/p>\n\u003cp>While changes in antitrust enforcement have made it easier for large companies to dictate prices and exert greater control over supposedly independent businesses, they have also become a tool to prevent workers from organizing or forming their own collectives.[pullquote align=\"right\" size=\"medium\" citation=\"Jaspreet Dhillon, 7-Eleven franchise owner\"]'They paint a rosy picture, but then when you get in you find it’s a different reality.'[/pullquote]If a bunch of taxi drivers got together, made an app and called themselves independent businesses, but collectively set prices, consumers could easily sue them for price fixing, says Steinbaum, \u003ca href=\"https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3279629\">pointing to numerous examples\u003c/a> of crackdowns on employee coordination.\u003c/p>\n\u003cp>The reorientation of antitrust enforcement has also helped prevent gig workers from organizing and pushing for higher wages. In 2015, the Seattle City Council passed a measure extending collective bargaining rights to Lyft and Uber drivers. Right after its passage, Lyft, Uber and the city's chamber of commerce sued, claiming the measure violated federal antitrust law — on the grounds that workers would potentially be able to spur price hikes.\u003c/p>\n\u003cp>After the federal government weighed in, supporting the suit, \u003ca href=\"https://www.geekwire.com/2020/uber-seattle-u-s-chamber-end-legal-dispute-union-law-city-plans-minimum-wage-drivers/\">the council pulled the collective bargaining provision.\u003c/a>\u003c/p>\n\u003cp>Reforming antitrust would require regulators to be honest that “economic efficiency” is not some neutral, objective metric, but an ideological construct, argues Sanjukta Paul, a Wayne State law professor who wrote \u003ca href=\"https://scholarship.law.duke.edu/cgi/viewcontent.cgi?article=4919&context=lcp\">a study that touched on how gig companies\u003c/a> have exerted control over \"independent contractors\" without using the franchise model.\u003c/p>\n\u003cp>“When you’re telling someone else what to do and dominating them economically and extracting as much as you can from them, effort-wise, whether it’s a worker or small firm, that is ‘efficiency,' ” she says.\u003c/p>\n\u003cp>Paul envisions an alternative metric based on social good. “If we can be more systematic and honest about what values we want to promote,” she says, “then we might say it is actually efficient and pro-social to have truck drivers and taxi cab drivers make a living wage so that they can invest in their communities and then invest in green technology for their trucks and cars.”\u003c/p>\n\u003cp>[ad floatright]\u003c/p>\n\u003cp>Paul's pitch — that antitrust law be again used to better protect workers instead of focusing on lowering costs for consumers and making profit for shareholders — could go a long way in helping both gig workers who want employee protections and franchisees like Haitayan who want true independence.\u003c/p>\n\n",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003cp>If you walk into a 7-Eleven in California and it’s too hot or cold, don’t blame the franchisee who runs the place. The thermostat is controlled remotely from the company's corporate headquarters in Dallas — as are the store’s hours, prices and the specific kinds of pizza, wings and tacos they can sell.\u003c/p>\n\u003cp>A group of four franchisees in California are involved in an ongoing suit against 7-Eleven over the extent of the company's control, arguing that it's treating them like employees, but classifying them as independent contractors. If they get so little say on how to run their businesses, the franchisees argue, they should at least receive basic employee protections, like overtime pay and workers' compensation.\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>Much of the lawsuit rests on \u003ca href=\"https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=201920200AB5\">Assembly Bill 5\u003c/a>, the California law intended to make it harder for gig companies like Uber, Lyft and DoorDash to have sway over their workers without providing employee benefits. And while that 2018 law was drafted in response to today’s gig work environment, it was the franchising industry that originally normalized the labor relations on which the “gig economy” is built.\u003c/p>\n\u003cp>In the franchise model, a business owner buys the right to run a store under the franchisor's brand. As part of the deal, the franchisee must follow a set of rules laid out by the parent company.\u003c/p>\n\u003cp>Starting in the 1970s, franchising set a legal precedent for gig companies by helping change the enforcement of U.S. antitrust law, and weakening the labor protections that prevent corporations from misclassifying workers as independent contractors.\u003c/p>\n\u003cp>The link between franchising and gig work was evident in the lead-up to the election in November. When it looked like Proposition 22 — an ultimately successful bid by gig companies to circumvent California's new labor law — could fail, forcing companies to pay for basic employee protections, executives reportedly started \u003ca href=\"https://www.nytimes.com/2020/08/18/technology/uber-lyft-franchise-california.html\">looking into franchising models\u003c/a> as a backup plan.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>But gig companies were already capitalizing on the business framework that decades of franchising has normalized — an ongoing tension reflected in the 7-Eleven lawsuit.\u003c/p>\n\u003ch3>\u003cstrong>Family Business\u003c/strong>\u003c/h3>\n\u003cp>There’s an old 7-Eleven on the outskirts of Fresno with a hot dog sign on the window. It says, “Anyone who is hungry and can't pay for a hot dog can have one for free!” Next to the sign is an illustration of a jolly Lebanese Santa Claus with a big beard, the name “Serge” written across his chest.\u003c/p>\n\u003cfigure id=\"attachment_11862646\" class=\"wp-caption aligncenter\" style=\"max-width: 2560px\">\u003cimg class=\"wp-image-11862646 size-full\" src=\"https://ww2.kqed.org/app/uploads/sites/10/2021/03/Hot-Dog-scaled.jpg\" alt=\"\" width=\"2560\" height=\"1920\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2021/03/Hot-Dog-scaled.jpg 2560w, https://ww2.kqed.org/app/uploads/sites/10/2021/03/Hot-Dog-800x600.jpg 800w, https://ww2.kqed.org/app/uploads/sites/10/2021/03/Hot-Dog-1020x765.jpg 1020w, https://ww2.kqed.org/app/uploads/sites/10/2021/03/Hot-Dog-160x120.jpg 160w, https://ww2.kqed.org/app/uploads/sites/10/2021/03/Hot-Dog-1536x1152.jpg 1536w, https://ww2.kqed.org/app/uploads/sites/10/2021/03/Hot-Dog-2048x1536.jpg 2048w, https://ww2.kqed.org/app/uploads/sites/10/2021/03/Hot-Dog-1920x1440.jpg 1920w, https://ww2.kqed.org/app/uploads/sites/10/2021/03/Hot-Dog-1832x1374.jpg 1832w, https://ww2.kqed.org/app/uploads/sites/10/2021/03/Hot-Dog-1376x1032.jpg 1376w, https://ww2.kqed.org/app/uploads/sites/10/2021/03/Hot-Dog-1044x783.jpg 1044w, https://ww2.kqed.org/app/uploads/sites/10/2021/03/Hot-Dog-632x474.jpg 632w, https://ww2.kqed.org/app/uploads/sites/10/2021/03/Hot-Dog-536x402.jpg 536w\" sizes=\"(max-width: 2560px) 100vw, 2560px\">\u003cfigcaption class=\"wp-caption-text\">The sign on the outside of Serge Haitayan's 7-Eleven store in Fresno. \u003ccite>(KQED/Sam Harnett)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>That's Serge Haitayan, a man in his 60s who has run the franchise for 30 years.\u003c/p>\n\u003cp>“Santa’s beard used to be black” he says. “Now, it’s more grayish.”\u003c/p>\n\u003cp>A refugee from Lebanon, Haitayan came to Los Angeles in the 1980s, and then moved to Fresno — a place he thought would be good to raise a family — where he began running the 7-Eleven store and eventually became a franchise owner.\u003c/p>\n\u003cp>“My kids were raised in the store,” he says. “I used to go pick them up every day after school, and they would stay in this office, and they would do their homework and they would spend the afternoon in the store. I used to have them open the doors for customers and say, ‘Hello. Good afternoon, good evening, welcome to the store.’ ”\u003c/p>\n\u003cp>But Haitayan says ever since the 7-Eleven company was bought by a major Japanese retail firm 16 years ago, the store has felt increasingly less like his own. He says he can’t even control the store temperature himself. He points to the place on the wall where his old thermostat used to be, and describes how a few years ago, a crew from the company came, ripped it out and replaced it with one that is controlled remotely from U.S. corporate headquarters in Dallas.\u003c/p>\n\u003cp>“In what world is that OK for you to live in Dallas and control my temperature here where I am sitting?” he asks. “How do you know my environment? How do you know my body? How do you know everyone else's bodies?”\u003c/p>\n\u003ch3>\u003cstrong>Increasing Control\u003c/strong>\u003c/h3>\n\u003cp>Haitayan says there has always been a struggle over control with 7-Eleven. Franchisees have to sign lengthy contracts, obligating them to comply with even lengthier operations manuals. The company's manual is nearly 1,000 pages long, he says. And 7-Eleven can change the rules in the manual at any time.\u003c/p>\n\u003cp>When he started his franchise back in the 1990s, Haitayan says the company's control was tolerable. But ever since 7-Eleven was bought out, he says, it has increasingly dictated everything from when franchisees can order from vendors to what they can sell.\u003c/p>\n\u003cp>The final straw for Haitayan was a two-pack of batteries.\u003c/p>\n\u003cp>Haitayan says a few years ago he suddenly could only order jumbo packs of 14 or 16 batteries. “This is not Costco. This is not Walmart,” he says. “This is a convenience store.”\u003c/p>\n\u003cp>His customers wanted small packs of batteries, but he says for some reason that inventory had vanished from the system. Over time, the list of products he couldn’t order continued to grow, like certain kinds of sodas, iced teas and cigarettes.\u003c/p>\n\u003cp>7-Eleven did not respond to multiple requests for comment for this story.\u003c/p>\n\u003cp>The company has made other changes in recent years. It installed corporate cameras in franchise stores, raised the maximum share of profits the company can keep from 50% to 59%, and increased the focus on food sales, resulting in higher costs for franchisees because they are responsible for covering payroll and have to hire more employees to prepare the food.\u003c/p>\n\u003cp>For Haitayan, the batteries drove home the reality of how powerless he was. “I feel like nothing but an unglorified store manager without benefits,” he says. So, he joined a handful of other California franchisees in the now more than 3-year-old misclassification lawsuit.\u003c/p>\n\u003cfigure id=\"attachment_11862647\" class=\"wp-caption aligncenter\" style=\"max-width: 1920px\">\u003cimg class=\"wp-image-11862647 size-full\" src=\"https://ww2.kqed.org/app/uploads/sites/10/2021/03/Serge-Out-Front-scaled-e1616018130427.jpg\" alt=\"\" width=\"1920\" height=\"1868\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2021/03/Serge-Out-Front-scaled-e1616018130427.jpg 1920w, https://ww2.kqed.org/app/uploads/sites/10/2021/03/Serge-Out-Front-scaled-e1616018130427-800x778.jpg 800w, https://ww2.kqed.org/app/uploads/sites/10/2021/03/Serge-Out-Front-scaled-e1616018130427-1020x992.jpg 1020w, https://ww2.kqed.org/app/uploads/sites/10/2021/03/Serge-Out-Front-scaled-e1616018130427-160x156.jpg 160w, https://ww2.kqed.org/app/uploads/sites/10/2021/03/Serge-Out-Front-scaled-e1616018130427-1536x1494.jpg 1536w\" sizes=\"(max-width: 1920px) 100vw, 1920px\">\u003cfigcaption class=\"wp-caption-text\">Serge Haitayan outside of his store. \u003ccite>(Sam Harnett/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Jaspreet Dhillon, another 7-Eleven franchisee in Southern California, and a plaintiff in the suit, echoes many of the points made by Haitayan. He says for years he didn’t fight the company's control.\u003c/p>\n\u003cp>“You don’t have time to think,” he says. “You have family, you come home, you’re tired, you rest and the next day you’re up again ready to go again.”\u003c/p>\n\u003cp>But a few years ago he, like Haitayan, reached his breaking point. “I used to love going to the store,” he says. “Now, I dread it.”\u003c/p>\n\u003cp>The franchisees, who filed the suit in federal district court in Los Angeles in 2017, initially lost. But the 9th U.S. Circuit Court of Appeals vacated the lower court's ruling in 2018, determining that the judge made a hasty decision and focused too much on the amount of control detailed in the franchisee agreement, rather than the plaintiffs’ allegations of what was actually happening in their stores.\u003c/p>\n\u003cp>The 7-Eleven decision is now back in a lower federal district court, and a new ruling is expected this month.\u003c/p>\n\u003ch3>\u003cstrong>‘Prehistory of the Gig Economy’\u003c/strong>\u003c/h3>\n\u003cp>Brian Callaci, an economist at Data and Society, a nonprofit that researches technology and regulation, recently released\u003ca href=\"https://datasociety.net/library/puppet-entrepreneurship/\"> a lengthy report\u003c/a> on the current level of corporate control in franchising.\u003c/p>\n\u003cp>“It would be a stretch to call it real independent business ownership,\" says Callaci, who reviewed more than 500 franchise contracts.\u003c/p>\n\u003cp>Although he says 7-Eleven is one of the more overbearing franchises, franchisors in general have moved towards more centralized control.\u003c/p>\n\u003cp>It's not a coincidence that this increase parallels the heightened control in the gig economy, Callaci says, adding that franchising helped lay the legal groundwork for gig companies like Lyft and DoorDash.\u003c/p>\n\u003cp>“The legal history of franchising is very much the prehistory of the gig economy,” he says.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>Before the 1970s, regulators were more likely to use antitrust law to try and stop larger corporations from tightly controlling smaller independent businesses, Callaci says. The prospect of corporate domination, he adds, was a bigger factor in assessing and enforcing antitrust violations.\u003c/p>\n\u003cp>But through a series of subsequent court cases, franchisors gained the ability to exert greater control over franchisees. In 1977, they scored a major victory in Continental TV v. GTE Sylvania, in which the U.S. \u003ca href=\"https://www.oyez.org/cases/1976/76-15\">Supreme Court ruled \u003c/a>that large corporations controlling smaller operators, like franchisees, was intrinsic to the American business model.\u003c/p>\n\u003cp>That ruling and others like it changed how antitrust laws were enforced in the U.S. The principles of shareholder capitalism became the guiding ideology, with the focus shifting from trying to prevent the domination of smaller independent businesses and workers to strengthening \"consumer welfare\" and \"economic efficiency.\"\u003c/p>\n\u003ch3>\u003cstrong>Squeezed Out\u003c/strong>\u003c/h3>\n\u003cp>Today, there are some 770,000 franchisees in America. Many are immigrants or people of color who had to scrape together money from friends and family to pay the franchise fee required to enter the business. For prime 7-Eleven locations in California, that can amount to hundreds of thousands of dollars.\u003c/p>\n\u003cp>Dhillon says 7-Eleven promises true business ownership, the American dream. “They paint a rosy picture, but then when you get in you find it’s a different reality.”\u003c/p>\n\u003cp>Once franchisees get into the business, it’s hard to get out. For one, most franchisees do not own their property. That means if they lose the right to the franchise, they lose their business and their investment, which could mean sacrificing the entire franchise fee.\u003c/p>\n\u003cp>Haitayan says the power 7-Eleven has over franchisees keeps many of them from speaking up. He hasn’t kept quiet, though.\u003c/p>\n\u003cp>Haitayan has been involved in several lawsuits against 7-Eleven in recent years, including one over the installation of cameras in stores, which franchisees eventually accepted in a settlement.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>Last fall, on Haitayan’s 30th anniversary owning his franchise, he says the company sent him a letter informing him they weren’t renewing the lease and were closing the store.\u003c/p>\n\u003cp>Haitayan says the store was doing well and he could see no financial reason for to close it down. “Beside saying, ‘We want to teach every franchisee a lesson, that the moment you stand up to 7-Eleven and you create problems and you challenge them and you take them to court, this is what is going to end up happening to you,’ ” he says.\u003c/p>\n\u003cp>But Haitayan is relatively lucky. Unlike most other 7-Eleven franchisees, he owns his property, which means he was able to reopen it as his own store under a different name. But he says because 7-Eleven neglected to do maintenance for years, he had to spend over a quarter million dollars on renovations.\u003c/p>\n\u003cp>Even though he's opening his own store, he plans to remain involved in the current lawsuit.\u003c/p>\n\u003cp>“My fight is still with franchisees and with all the new economy gig employees,” he says, “because they’re not treated fair.”\u003c/p>\n\u003cp>Haitayan says franchisees and gig workers are in a similar boat because they’re both fighting against companies that he says are taking excessive control over workers without having to provide basic benefits. He says American workers should either be granted employee protections or true independence.\u003c/p>\n\u003ch3>\u003cstrong>From Franchising to Gig Platforms\u003c/strong>\u003c/h3>\n\u003cp>Today's franchisors and gig companies have both benefited heartily from the decreasing focus on corporate domination in antitrust enforcement.\u003c/p>\n\u003cp>With the development of apps, gig companies have gone a step further than the franchise model. Instead of requiring franchisees to buy into the brand to run their own business, gig workers sign up on their platforms to do piecemeal gigs. This \"platform argument\" has been key to how many gig companies justify their employment practices to regulators.\u003c/p>\n\u003cp>Gig company executives and their legal teams consistently argue they are not running taxi or delivery businesses, but instead tech companies that have created platforms to connect consumers to independent service providers. Under this platform argument, Uber drivers, Instacart grocery shoppers or DoorDash deliverers are not employees, but rather entrepreneurs running their own businesses.\u003c/p>\n\u003cp>This argument has been very successful, largely because of the way the U.S. now enforces antitrust law, says University of Utah economist Marshall Steinbaum.\u003c/p>\n\u003cp>“The business model of gig companies is dependent on the weakening of antitrust,” says Steinbaum, who\u003ca href=\"https://marshallsteinbaum.org/assets/steinbaum-2019-antitrust-the-gig-economy-and-labor-market-power-law-and-contemporary-problems-.pdf\"> published a paper\u003c/a> on the issue.\u003c/p>\n\u003cp>If regulators enforced antitrust law the way they used to, Steinbaum says, gig companies would risk being sued for how much they control their supposedly independent contractors. They would be encouraged to classify their workers as employees so that they could continue setting prices and controlling the interaction between independent workers and customers, things that could have triggered antitrust enforcement in the past.\u003c/p>\n\u003cp>While changes in antitrust enforcement have made it easier for large companies to dictate prices and exert greater control over supposedly independent businesses, they have also become a tool to prevent workers from organizing or forming their own collectives.\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>If a bunch of taxi drivers got together, made an app and called themselves independent businesses, but collectively set prices, consumers could easily sue them for price fixing, says Steinbaum, \u003ca href=\"https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3279629\">pointing to numerous examples\u003c/a> of crackdowns on employee coordination.\u003c/p>\n\u003cp>The reorientation of antitrust enforcement has also helped prevent gig workers from organizing and pushing for higher wages. In 2015, the Seattle City Council passed a measure extending collective bargaining rights to Lyft and Uber drivers. Right after its passage, Lyft, Uber and the city's chamber of commerce sued, claiming the measure violated federal antitrust law — on the grounds that workers would potentially be able to spur price hikes.\u003c/p>\n\u003cp>After the federal government weighed in, supporting the suit, \u003ca href=\"https://www.geekwire.com/2020/uber-seattle-u-s-chamber-end-legal-dispute-union-law-city-plans-minimum-wage-drivers/\">the council pulled the collective bargaining provision.\u003c/a>\u003c/p>\n\u003cp>Reforming antitrust would require regulators to be honest that “economic efficiency” is not some neutral, objective metric, but an ideological construct, argues Sanjukta Paul, a Wayne State law professor who wrote \u003ca href=\"https://scholarship.law.duke.edu/cgi/viewcontent.cgi?article=4919&context=lcp\">a study that touched on how gig companies\u003c/a> have exerted control over \"independent contractors\" without using the franchise model.\u003c/p>\n\u003cp>“When you’re telling someone else what to do and dominating them economically and extracting as much as you can from them, effort-wise, whether it’s a worker or small firm, that is ‘efficiency,' ” she says.\u003c/p>\n\u003cp>Paul envisions an alternative metric based on social good. “If we can be more systematic and honest about what values we want to promote,” she says, “then we might say it is actually efficient and pro-social to have truck drivers and taxi cab drivers make a living wage so that they can invest in their communities and then invest in green technology for their trucks and cars.”\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>Paul's pitch — that antitrust law be again used to better protect workers instead of focusing on lowering costs for consumers and making profit for shareholders — could go a long way in helping both gig workers who want employee protections and franchisees like Haitayan who want true independence.\u003c/p>\n\n\u003c/div>\u003c/p>",
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"content": "\u003cp>When Derrick Neal moved back to the Los Angeles area from Florida last year, after his mother died, he needed to find a job quickly to keep paying his bills.\u003c/p>\n\u003cp>Neal, 40, has been working ever since he turned 18, mostly in retail jobs at big chain stores like Walmart and Home Depot. In L.A. last May, he started delivering groceries for the supermarket chain Vons and was surprised how much he enjoyed it.\u003c/p>\n\u003cp>He likes arriving at work in the morning and seeing all his routes for the day, he says. Vons provides him with a company phone and a van with compartments that he fills with various delivery items.[pullquote align=\"right\" size=\"medium\" citation=\"Veena Dubal, UC Hastings law professor\"]‘Proposition 22 is essentially a blueprint for how to lower labor standards across the board.’[/pullquote]“It’s like I am bringing the whole store to the customer,” he said.\u003c/p>\n\u003cp>Neal says he has felt especially good about doing his job during the pandemic, delivering food to the elderly or sick who would otherwise have to risk their health by going to the grocery store.\u003c/p>\n\u003cp>The job has been a lifeline for him, too.\u003c/p>\n\u003cp>“There weren’t many people hiring at the start of the pandemic,” Neal said. “So I was happy to get the job.”\u003c/p>\n\u003cp>After one of his shifts in December, Neal says he and other non-union delivery employees were called to a meeting by their managers and informed they would all be laid off by the end of February. Independent contractors working through DoorDash were going to take over their jobs, they were told.\u003c/p>\n\u003cp>“It was devastating,” Neal said. On top of that, he also had to move out of his apartment that month after his landlord sold the building. Unable to find another place he can afford, he has been living in his car since then.\u003c/p>\n\u003cp>Neal says he doesn’t understand the company’s decision, particularly given how much delivery work has recently been available.\u003c/p>\n\u003cp>“If I were able to talk to them, I would just ask them, ‘Why?’ ” Neal said. “Who did the cost analysis on this and deemed that it was more cost efficient to go with independent contractors than the people we already have, that are there day in and day out, blood sweat and tears, going through it?”\u003c/p>\n\u003cfigure id=\"attachment_11855989\" class=\"wp-caption alignright\" style=\"max-width: 968px\">\u003ca href=\"https://ww2.kqed.org/app/uploads/sites/10/2021/01/Derrick-Neal-e1611086411183.png\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-11855989\" src=\"https://ww2.kqed.org/app/uploads/sites/10/2021/01/Derrick-Neal-e1611086411183.png\" alt=\"\" width=\"968\" height=\"943\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2021/01/Derrick-Neal-e1611086411183.png 968w, https://cdn.kqed.org/wp-content/uploads/sites/10/2021/01/Derrick-Neal-e1611086411183-800x779.png 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2021/01/Derrick-Neal-e1611086411183-160x156.png 160w\" sizes=\"(max-width: 968px) 100vw, 968px\">\u003c/a>\u003cfigcaption class=\"wp-caption-text\">Derrick Neal, a Vons delivery driver in Los Angeles, says it is devastating to know he will soon lose his job, especially after recently being kicked out of his apartment. \u003ccite>(Courtesy of Derrick Neal)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Vons is one of many grocery chains owned by Albertsons, the second-largest grocery company in the country. Earlier this month, Albertsons announced it would discontinue its in-house delivery services in parts of California and other states starting late February.\u003c/p>\n\u003cp>The company has not specified how many delivery employees will be replaced by DoorDash contractors, but the United Food and Commercial Workers union estimates it will be in the high hundreds.\u003c/p>\n\u003cp>“This decision will allow us to compete in the growing home delivery market more effectively,” Albertsons spokeswoman Christine Wilcox said in a statement. She added, “Albertsons Companies Divisions plans to offer positions to each impacted associate.”\u003c/p>\n\u003cp>Wilcox did not respond to a request for clarification on the nature of these jobs and the process by which they will be offered to delivery employees like Neal. The company has also not provided proof of any legal commitment to offering new jobs, or any guarantees of equivalent pay, benefits and job locations.\u003c/p>\n\u003cp>The replacement of employees by contractors is exactly what labor advocates warned would happen with \u003ca href=\"https://www.kqed.org/news/11843123/prop-22-explained-why-gig-companies-are-spending-huge-money-on-an-unprecedented-measure\">Proposition 22\u003c/a>, which California voters approved in November.\u003c/p>\n\u003cp>“I’m not surprised that it happened this quickly, because what the Proposition 22 worker category that was created does is significantly lower labor costs for corporations,” said Veena Dubal, a UC Hastings law professor.\u003c/p>\n\u003cp>Proposition 22 creates a new sub-employee category that allows app-based delivery and transportation gig companies to legally deny workers access to employee benefits like overtime, unemployment insurance and a guaranteed minimum wage. Instead, companies have to offer workers in this category certain watered-down employee benefits like health care subsidies and the option to purchase insurance.\u003c/p>\n\u003cp>The proposition was written by DoorDash, Uber, Lyft and other gig companies, which collectively spent over $200 million on the campaign, making it the most expensive ballot measure in state history. Now that the measure is law, it has nullified recent efforts by all three branches of California government to force gig companies to classify their workers as employees.\u003c/p>\n\u003cp>Dubal says logistics and delivery employees will just be the first to lose their jobs.\u003c/p>\n\u003cp>“Proposition 22 is essentially a blueprint for how to lower labor standards across the board,” she said. “For those who have been thinking of this as a whole different type of work, as something that would never affect them, this is really the time to start paying attention. This model of work is coming for you and your job.”\u003c/p>\n\u003cp>Venture capitalists already see opportunity.\u003c/p>\n\u003cp>Shawn Carolan is a partner at Menlo Ventures. In a recent opinion piece titled “What Proposition 22 Now Makes Possible” published on \u003ca href=\"https://www.theinformation.com/articles/what-proposition-22-now-makes-possible\">The Information\u003c/a>, he said there’s potential for this new labor category to extend to fields like nursing, executive assistance, tutoring, programming, agricultural work and even zoo keeping.\u003c/p>\n\u003cp>[ad fullwidth]Executives at most gig companies have always \u003ca href=\"https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3668606\">described their businesses\u003c/a> as “platforms” that connect independent workers to customers.\u003c/p>\n\u003cp>But that argument doesn’t add up for David Weil, dean of the Heller School for Social Policy and Management at Brandeis University. Even though the work is through an app, he says, the business strategy is nothing new.\u003c/p>\n\u003cp>“It is just a part of the evolution of the erosion of workplace standards that has happened in lots of different ways,” he said.\u003c/p>\n\u003cp>Weil came up with the term “fissuring” to describe \u003ca href=\"https://www.kqed.org/news/11827591/how-we-got-here-part-2-the-attack-on-worker-power\">what is happening to American workplaces\u003c/a>. Since the 1970s, executives have increasingly replaced full-time employee jobs with part-time, subcontracted and outsourced work. Weil says gig companies are just pushing that fissuring further by labeling their workers independent contractors.\u003c/p>\n\u003cp>[aside label=\"related coverage\" tag=\"prop-22\"]“They’re using the platform as a way to get out of the obligation of actually treating those workers as employees,” he said.\u003c/p>\n\u003cp>DoorDash declined an interview with KQED. But in a statement, a spokesperson said the company provided a vital service.\u003c/p>\n\u003cp>“DoorDash has always supported local economies, and as e-commerce and delivery have become even more important for many businesses during these challenging times, we remain committed to helping brick-and-mortar local merchants reach consumers with the best of their neighborhood,” DoorDash spokesman Taylor Bennett said in a press release.\u003c/p>\n\u003cp>The news of Albertsons’ new arrangement with DoorDash has spurred other grocery delivery workers in California to unionize.\u003c/p>\n\u003cp>“I can’t tell you how many times I’ve told people that I feel so lucky to have this job,” said Leigh Littlefield, a Bay Area delivery worker for Safeway, another grocery chain owned by Albertsons.\u003c/p>\n\u003cp>Littlefield is one of 250 delivery workers for Safeway that just joined the United Food and Commercial Workers International union. They first started organizing to receive guaranteed benefits, she says, after managers began blocking them from working the minimum number of hours required to qualify. The effort was well underway when they got wind of the DoorDash threat, which Littlefield says spurred workers to quickly finish unionizing.\u003c/p>\n\u003cp>Workers wrote into their contract that employees could not have shifts replaced by DoorDash, Littlefield says. “If we didn’t have this contract,” she says, “I imagine we would have been laid off with everyone else.”\u003c/p>\n\u003cp>Derrick Neal was not part of a union. He’s living out of his car, trying to figure out what to do next. He hopes he can find another job with some kind of safety net.\u003c/p>\n\u003cp>In America, that is becoming harder and harder to find.\u003c/p>\n\u003cp>[ad floatright]\u003c/p>\n",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003cp>When Derrick Neal moved back to the Los Angeles area from Florida last year, after his mother died, he needed to find a job quickly to keep paying his bills.\u003c/p>\n\u003cp>Neal, 40, has been working ever since he turned 18, mostly in retail jobs at big chain stores like Walmart and Home Depot. In L.A. last May, he started delivering groceries for the supermarket chain Vons and was surprised how much he enjoyed it.\u003c/p>\n\u003cp>He likes arriving at work in the morning and seeing all his routes for the day, he says. Vons provides him with a company phone and a van with compartments that he fills with various delivery items.\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>“It’s like I am bringing the whole store to the customer,” he said.\u003c/p>\n\u003cp>Neal says he has felt especially good about doing his job during the pandemic, delivering food to the elderly or sick who would otherwise have to risk their health by going to the grocery store.\u003c/p>\n\u003cp>The job has been a lifeline for him, too.\u003c/p>\n\u003cp>“There weren’t many people hiring at the start of the pandemic,” Neal said. “So I was happy to get the job.”\u003c/p>\n\u003cp>After one of his shifts in December, Neal says he and other non-union delivery employees were called to a meeting by their managers and informed they would all be laid off by the end of February. Independent contractors working through DoorDash were going to take over their jobs, they were told.\u003c/p>\n\u003cp>“It was devastating,” Neal said. On top of that, he also had to move out of his apartment that month after his landlord sold the building. Unable to find another place he can afford, he has been living in his car since then.\u003c/p>\n\u003cp>Neal says he doesn’t understand the company’s decision, particularly given how much delivery work has recently been available.\u003c/p>\n\u003cp>“If I were able to talk to them, I would just ask them, ‘Why?’ ” Neal said. “Who did the cost analysis on this and deemed that it was more cost efficient to go with independent contractors than the people we already have, that are there day in and day out, blood sweat and tears, going through it?”\u003c/p>\n\u003cfigure id=\"attachment_11855989\" class=\"wp-caption alignright\" style=\"max-width: 968px\">\u003ca href=\"https://ww2.kqed.org/app/uploads/sites/10/2021/01/Derrick-Neal-e1611086411183.png\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-11855989\" src=\"https://ww2.kqed.org/app/uploads/sites/10/2021/01/Derrick-Neal-e1611086411183.png\" alt=\"\" width=\"968\" height=\"943\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2021/01/Derrick-Neal-e1611086411183.png 968w, https://cdn.kqed.org/wp-content/uploads/sites/10/2021/01/Derrick-Neal-e1611086411183-800x779.png 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2021/01/Derrick-Neal-e1611086411183-160x156.png 160w\" sizes=\"(max-width: 968px) 100vw, 968px\">\u003c/a>\u003cfigcaption class=\"wp-caption-text\">Derrick Neal, a Vons delivery driver in Los Angeles, says it is devastating to know he will soon lose his job, especially after recently being kicked out of his apartment. \u003ccite>(Courtesy of Derrick Neal)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Vons is one of many grocery chains owned by Albertsons, the second-largest grocery company in the country. Earlier this month, Albertsons announced it would discontinue its in-house delivery services in parts of California and other states starting late February.\u003c/p>\n\u003cp>The company has not specified how many delivery employees will be replaced by DoorDash contractors, but the United Food and Commercial Workers union estimates it will be in the high hundreds.\u003c/p>\n\u003cp>“This decision will allow us to compete in the growing home delivery market more effectively,” Albertsons spokeswoman Christine Wilcox said in a statement. She added, “Albertsons Companies Divisions plans to offer positions to each impacted associate.”\u003c/p>\n\u003cp>Wilcox did not respond to a request for clarification on the nature of these jobs and the process by which they will be offered to delivery employees like Neal. The company has also not provided proof of any legal commitment to offering new jobs, or any guarantees of equivalent pay, benefits and job locations.\u003c/p>\n\u003cp>The replacement of employees by contractors is exactly what labor advocates warned would happen with \u003ca href=\"https://www.kqed.org/news/11843123/prop-22-explained-why-gig-companies-are-spending-huge-money-on-an-unprecedented-measure\">Proposition 22\u003c/a>, which California voters approved in November.\u003c/p>\n\u003cp>“I’m not surprised that it happened this quickly, because what the Proposition 22 worker category that was created does is significantly lower labor costs for corporations,” said Veena Dubal, a UC Hastings law professor.\u003c/p>\n\u003cp>Proposition 22 creates a new sub-employee category that allows app-based delivery and transportation gig companies to legally deny workers access to employee benefits like overtime, unemployment insurance and a guaranteed minimum wage. Instead, companies have to offer workers in this category certain watered-down employee benefits like health care subsidies and the option to purchase insurance.\u003c/p>\n\u003cp>The proposition was written by DoorDash, Uber, Lyft and other gig companies, which collectively spent over $200 million on the campaign, making it the most expensive ballot measure in state history. Now that the measure is law, it has nullified recent efforts by all three branches of California government to force gig companies to classify their workers as employees.\u003c/p>\n\u003cp>Dubal says logistics and delivery employees will just be the first to lose their jobs.\u003c/p>\n\u003cp>“Proposition 22 is essentially a blueprint for how to lower labor standards across the board,” she said. “For those who have been thinking of this as a whole different type of work, as something that would never affect them, this is really the time to start paying attention. This model of work is coming for you and your job.”\u003c/p>\n\u003cp>Venture capitalists already see opportunity.\u003c/p>\n\u003cp>Shawn Carolan is a partner at Menlo Ventures. In a recent opinion piece titled “What Proposition 22 Now Makes Possible” published on \u003ca href=\"https://www.theinformation.com/articles/what-proposition-22-now-makes-possible\">The Information\u003c/a>, he said there’s potential for this new labor category to extend to fields like nursing, executive assistance, tutoring, programming, agricultural work and even zoo keeping.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>“They’re using the platform as a way to get out of the obligation of actually treating those workers as employees,” he said.\u003c/p>\n\u003cp>DoorDash declined an interview with KQED. But in a statement, a spokesperson said the company provided a vital service.\u003c/p>\n\u003cp>“DoorDash has always supported local economies, and as e-commerce and delivery have become even more important for many businesses during these challenging times, we remain committed to helping brick-and-mortar local merchants reach consumers with the best of their neighborhood,” DoorDash spokesman Taylor Bennett said in a press release.\u003c/p>\n\u003cp>The news of Albertsons’ new arrangement with DoorDash has spurred other grocery delivery workers in California to unionize.\u003c/p>\n\u003cp>“I can’t tell you how many times I’ve told people that I feel so lucky to have this job,” said Leigh Littlefield, a Bay Area delivery worker for Safeway, another grocery chain owned by Albertsons.\u003c/p>\n\u003cp>Littlefield is one of 250 delivery workers for Safeway that just joined the United Food and Commercial Workers International union. They first started organizing to receive guaranteed benefits, she says, after managers began blocking them from working the minimum number of hours required to qualify. The effort was well underway when they got wind of the DoorDash threat, which Littlefield says spurred workers to quickly finish unionizing.\u003c/p>\n\u003cp>Workers wrote into their contract that employees could not have shifts replaced by DoorDash, Littlefield says. “If we didn’t have this contract,” she says, “I imagine we would have been laid off with everyone else.”\u003c/p>\n\u003cp>Derrick Neal was not part of a union. He’s living out of his car, trying to figure out what to do next. He hopes he can find another job with some kind of safety net.\u003c/p>\n\u003cp>In America, that is becoming harder and harder to find.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"slug": "dashers-taskers-and-other-euphemisms-obscure-real-losses-for-gig-workers",
"title": "'Dashers,' 'Taskers' and Other Euphemisms Obscure Real Losses for Gig Workers",
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"content": "\u003cp>“Rideshare drivers,” “dashers,” “taskers,” “driver partners,” “entrepreneurs,” “earners”: There’s a long list of euphemisms for low-wage service workers in the U.S. today.\u003c/p>\n\u003cp>The “cute” monikers don’t just constitute a clever strategy by the public relations departments at companies like Uber and Lyft. These firms have made billions by calling their workers contractors, thereby denying them basic employee protections and benefits.\u003c/p>\n\u003cp>While so-called gig companies are best known for the practice these days, American companies have been making up names for low-wage workers for decades. Since the 1970s, managers and executives have created increasingly elaborate titles for workers at the same time they have weakened benefits, held wages stagnant, undermined unions and replaced full-time positions with part-time contract work. \u003ca href=\"https://www.kqed.org/howwegothere\">Here’s a three-hour radio documentary about how they did all that.\u003c/a>\u003c/p>\n\u003ch2>A long history\u003c/h2>\n\u003cp>In 1975, Walmart CEO Sam Walton decided the people staffing his stores would henceforth be called “associates.”\u003c/p>\n\u003cp>Today, Subway employees are called “sandwich artists.” Taco Bell cashiers, “champions.” Amazon workers, ”Amazonians.” At Disney World, managers call everyone from the janitor to the person inside the Mickey Mouse costume a “cast member.”\u003c/p>\n\u003cfigure id=\"attachment_11852714\" class=\"wp-caption aligncenter\" style=\"max-width: 2560px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-11852714\" src=\"https://ww2.kqed.org/app/uploads/sites/10/2020/12/GettyImages-1226305272.jpg\" alt=\"Say hello to a “cast member” at the Disneyland Resort in Anaheim. \" width=\"2560\" height=\"1707\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2020/12/GettyImages-1226305272.jpg 2560w, https://cdn.kqed.org/wp-content/uploads/sites/10/2020/12/GettyImages-1226305272-800x533.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2020/12/GettyImages-1226305272-1020x680.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2020/12/GettyImages-1226305272-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2020/12/GettyImages-1226305272-1536x1024.jpg 1536w, https://cdn.kqed.org/wp-content/uploads/sites/10/2020/12/GettyImages-1226305272-2048x1366.jpg 2048w, https://cdn.kqed.org/wp-content/uploads/sites/10/2020/12/GettyImages-1226305272-1920x1280.jpg 1920w\" sizes=\"(max-width: 2560px) 100vw, 2560px\">\u003cfigcaption class=\"wp-caption-text\">Say hello to a “cast member” at the Disneyland Resort in Anaheim. \u003ccite>(Photo by Derek Lee/Disneyland Resort via Getty Images)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>“They conjure a kind of egalitarian, creative, nurturing, healthy workplace — where in almost every case in this country, what you really have is a hierarchical, routine, dull, indifferent, and more and more these days, a toxic and unhealthy workplace,” said John Patrick Leary, author of “\u003ca href=\"https://www.haymarketbooks.org/books/1243-keywords\">Keywords: The New Language of Capitalism\u003c/a>.”\u003c/p>\n\u003cp>Leary adds these titles aren’t just about trying to make workers feel better about their jobs, but consumers, too. The names puts a positive gloss on low-wage labor for customers who might feel guilty being served by people working jobs for little pay or satisfaction.\u003c/p>\n\u003cp>Leary says terms like “associate” or “sandwich artist” are so absurd they are disorienting and block critique. “It can make you feel kind of crazy sometimes,” he said. “Like, ‘Am I the only person who thinks calling the person who checks you out at Target an associate is kind of ridiculous given their place in the Target hierarchy?’ It’s part of this saturation of dishonesty and lies that you are surrounded by that can make you feel a little bit overwhelmed.”\u003c/p>\n\u003cp>Gig companies like Uber and DoorDash have taken the titling of workers to a new level. Almost every company comes up with a particular name for workers, and typically, the term mirrors the company name. People doing tasks for TaskRabbit are called “taskers.” People delivering food for DoorDash are called “dashers.” People gathering up and recharging e-scooters for Lime are called “juicers.”\u003c/p>\n\u003ch2>A new economic model\u003c/h2>\n\u003cp>Unlike the “champions” of Taco Bell, or “cast members” of Disney, executives at DoorDash, Uber and the like also claim that their workers are not employees at all, but independent business owners the company is just connecting to clients through an online platform.\u003c/p>\n\u003cp>[pullquote size=\"medium\" align=\"right\" citation=\"John Patrick Leary, author of 'Keywords: The New Language of Capitalism'\"]“They conjure a kind of egalitarian, creative, nurturing, healthy workplace — where in almost every case in this country, what you really have is a hierarchical, routine, dull, indifferent, and more and more these days, a toxic and unhealthy workplace.”[/pullquote]Labor lawyer Caitlin Vega said these invented names help bolster this argument. “They [the gig companies] invented these terms to describe the work that they do that I think is meant to capture both that you should be loyal to the company, and yet we don’t owe you anything,” she said.\u003c/p>\n\u003cp>Many of the invented terms at gig companies obscure the labor of workers in a more drastic way than the aggrandizing titles given to employees at companies like Target and Walmart.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>Back in 2013, the marketing team at Lyft pushed this rebranding of work to the extreme. In advertisements, cheery narrators told consumers that Lyft drivers were “your friend with a car.” Customers were encouraged to sit in the front seat and fist-bump drivers.\u003c/p>\n\u003cp>Early Uber marketing material promised drivers they could own their own businesses and work without a boss. In fliers and ads, the company boasted about creating more than 100,000 “entrepreneurs.” The company then adopted the term “driver partners.” Most recently, Uber managers and PR people have been calling workers “earners.”\u003c/p>\n\u003cp>These invented terms have legal and economic significance. In 2013, lawyers and executives at Uber and Lyft were able to get the California Public Utilities Commission to write into law an entirely new regulatory category for their business: transportation network companies, or TNCs. This allowed TNCs to steer clear of local taxi and transportation laws, as well as laws governing TNC drivers.\u003c/p>\n\u003cp>This was part of the whole “sharing economy” trend \u003ca href=\"https://www.kqed.org/news/10851717/the-movement-to-kill-the-phrase-sharing-economy\">that journalists and politicians helped invent and inflate in the early days of Uber, Lyft and Airbnb\u003c/a>. Neither “rideshare” nor “sharing economy” has ever made any sense if you take into account any dictionary definition of the word sharing. Nevertheless, the term rideshare is still in use today. \u003ca href=\"https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3668606\">Here’s a whole essay on the complicity of tech media, if you’re curious.\u003c/a>\u003c/p>\n\u003cp>California’s Supreme Court, attorney general and Legislature agree there’s one accurate term for gig workers: employees, a term that guarantees benefits and protections. \u003ca href=\"https://www.kqed.org/news/11843123/prop-22-explained-why-gig-companies-are-spending-huge-money-on-an-unprecedented-measure\">But gig companies spent more than $200 million on Proposition 22\u003c/a>, which legalized a new sub-employee category. It comes with limited benefits, but the company still controls how the workers work and how they get paid.\u003c/p>\n\u003cp>While Sam Walton at Walmart helped mainstream fancy titles for low-paid employees, executives at gig companies like Lyft and Instacart have succeeded in passing labor laws that created a whole new legally defined sub-employee class for their workers. The new term for this sub-employee category? “Independent contractor plus.”\u003c/p>\n\u003cp>\u003c/p>\n",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003cp>“Rideshare drivers,” “dashers,” “taskers,” “driver partners,” “entrepreneurs,” “earners”: There’s a long list of euphemisms for low-wage service workers in the U.S. today.\u003c/p>\n\u003cp>The “cute” monikers don’t just constitute a clever strategy by the public relations departments at companies like Uber and Lyft. These firms have made billions by calling their workers contractors, thereby denying them basic employee protections and benefits.\u003c/p>\n\u003cp>While so-called gig companies are best known for the practice these days, American companies have been making up names for low-wage workers for decades. Since the 1970s, managers and executives have created increasingly elaborate titles for workers at the same time they have weakened benefits, held wages stagnant, undermined unions and replaced full-time positions with part-time contract work. \u003ca href=\"https://www.kqed.org/howwegothere\">Here’s a three-hour radio documentary about how they did all that.\u003c/a>\u003c/p>\n\u003ch2>A long history\u003c/h2>\n\u003cp>In 1975, Walmart CEO Sam Walton decided the people staffing his stores would henceforth be called “associates.”\u003c/p>\n\u003cp>Today, Subway employees are called “sandwich artists.” Taco Bell cashiers, “champions.” Amazon workers, ”Amazonians.” At Disney World, managers call everyone from the janitor to the person inside the Mickey Mouse costume a “cast member.”\u003c/p>\n\u003cfigure id=\"attachment_11852714\" class=\"wp-caption aligncenter\" style=\"max-width: 2560px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-11852714\" src=\"https://ww2.kqed.org/app/uploads/sites/10/2020/12/GettyImages-1226305272.jpg\" alt=\"Say hello to a “cast member” at the Disneyland Resort in Anaheim. \" width=\"2560\" height=\"1707\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2020/12/GettyImages-1226305272.jpg 2560w, https://cdn.kqed.org/wp-content/uploads/sites/10/2020/12/GettyImages-1226305272-800x533.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2020/12/GettyImages-1226305272-1020x680.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2020/12/GettyImages-1226305272-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2020/12/GettyImages-1226305272-1536x1024.jpg 1536w, https://cdn.kqed.org/wp-content/uploads/sites/10/2020/12/GettyImages-1226305272-2048x1366.jpg 2048w, https://cdn.kqed.org/wp-content/uploads/sites/10/2020/12/GettyImages-1226305272-1920x1280.jpg 1920w\" sizes=\"(max-width: 2560px) 100vw, 2560px\">\u003cfigcaption class=\"wp-caption-text\">Say hello to a “cast member” at the Disneyland Resort in Anaheim. \u003ccite>(Photo by Derek Lee/Disneyland Resort via Getty Images)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>“They conjure a kind of egalitarian, creative, nurturing, healthy workplace — where in almost every case in this country, what you really have is a hierarchical, routine, dull, indifferent, and more and more these days, a toxic and unhealthy workplace,” said John Patrick Leary, author of “\u003ca href=\"https://www.haymarketbooks.org/books/1243-keywords\">Keywords: The New Language of Capitalism\u003c/a>.”\u003c/p>\n\u003cp>Leary adds these titles aren’t just about trying to make workers feel better about their jobs, but consumers, too. The names puts a positive gloss on low-wage labor for customers who might feel guilty being served by people working jobs for little pay or satisfaction.\u003c/p>\n\u003cp>Leary says terms like “associate” or “sandwich artist” are so absurd they are disorienting and block critique. “It can make you feel kind of crazy sometimes,” he said. “Like, ‘Am I the only person who thinks calling the person who checks you out at Target an associate is kind of ridiculous given their place in the Target hierarchy?’ It’s part of this saturation of dishonesty and lies that you are surrounded by that can make you feel a little bit overwhelmed.”\u003c/p>\n\u003cp>Gig companies like Uber and DoorDash have taken the titling of workers to a new level. Almost every company comes up with a particular name for workers, and typically, the term mirrors the company name. People doing tasks for TaskRabbit are called “taskers.” People delivering food for DoorDash are called “dashers.” People gathering up and recharging e-scooters for Lime are called “juicers.”\u003c/p>\n\u003ch2>A new economic model\u003c/h2>\n\u003cp>Unlike the “champions” of Taco Bell, or “cast members” of Disney, executives at DoorDash, Uber and the like also claim that their workers are not employees at all, but independent business owners the company is just connecting to clients through an online platform.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>Labor lawyer Caitlin Vega said these invented names help bolster this argument. “They [the gig companies] invented these terms to describe the work that they do that I think is meant to capture both that you should be loyal to the company, and yet we don’t owe you anything,” she said.\u003c/p>\n\u003cp>Many of the invented terms at gig companies obscure the labor of workers in a more drastic way than the aggrandizing titles given to employees at companies like Target and Walmart.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>Back in 2013, the marketing team at Lyft pushed this rebranding of work to the extreme. In advertisements, cheery narrators told consumers that Lyft drivers were “your friend with a car.” Customers were encouraged to sit in the front seat and fist-bump drivers.\u003c/p>\n\u003cp>Early Uber marketing material promised drivers they could own their own businesses and work without a boss. In fliers and ads, the company boasted about creating more than 100,000 “entrepreneurs.” The company then adopted the term “driver partners.” Most recently, Uber managers and PR people have been calling workers “earners.”\u003c/p>\n\u003cp>These invented terms have legal and economic significance. In 2013, lawyers and executives at Uber and Lyft were able to get the California Public Utilities Commission to write into law an entirely new regulatory category for their business: transportation network companies, or TNCs. This allowed TNCs to steer clear of local taxi and transportation laws, as well as laws governing TNC drivers.\u003c/p>\n\u003cp>This was part of the whole “sharing economy” trend \u003ca href=\"https://www.kqed.org/news/10851717/the-movement-to-kill-the-phrase-sharing-economy\">that journalists and politicians helped invent and inflate in the early days of Uber, Lyft and Airbnb\u003c/a>. Neither “rideshare” nor “sharing economy” has ever made any sense if you take into account any dictionary definition of the word sharing. Nevertheless, the term rideshare is still in use today. \u003ca href=\"https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3668606\">Here’s a whole essay on the complicity of tech media, if you’re curious.\u003c/a>\u003c/p>\n\u003cp>California’s Supreme Court, attorney general and Legislature agree there’s one accurate term for gig workers: employees, a term that guarantees benefits and protections. \u003ca href=\"https://www.kqed.org/news/11843123/prop-22-explained-why-gig-companies-are-spending-huge-money-on-an-unprecedented-measure\">But gig companies spent more than $200 million on Proposition 22\u003c/a>, which legalized a new sub-employee category. It comes with limited benefits, but the company still controls how the workers work and how they get paid.\u003c/p>\n\u003cp>While Sam Walton at Walmart helped mainstream fancy titles for low-paid employees, executives at gig companies like Lyft and Instacart have succeeded in passing labor laws that created a whole new legally defined sub-employee class for their workers. The new term for this sub-employee category? “Independent contractor plus.”\u003c/p>\n\u003cp>\u003c/p>\n\u003c/div>\u003c/p>",
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"slug": "tired-of-big-tech-co-ops-appeal-to-delivery-workers-burned-by-gigs",
"title": "Tired of Big Tech, Co-ops Appeal to Delivery Workers Burned by Gigs",
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"content": "\u003cp>If you order food from DoorDash, Uber Eats or Postmates, there’s a pretty good chance the person who delivers your meal has far fewer labor protections and benefits than you do.[pullquote align=\"right\" size=\"medium\" citation=\"Gerry Valencia, bike courier\"]“My mom doesn’t understand how I am a worker and an owner. If something happens, she’s like, ‘How do your bosses feel about that?’ And I’m like, ‘Mom, I am the boss.’ “[/pullquote]Gig workers lack basic employee benefits such as a guaranteed minimum wage, overtime pay, workers’ compensation and unemployment insurance. And Proposition 22, which California voters \u003ca href=\"https://www.kqed.org/news/11843123/prop-22-explained-why-gig-companies-are-spending-huge-money-on-an-unprecedented-measure\">recently passed\u003c/a> after a historic spending campaign by gig companies, creates a new sub-employee category for those workers, codifying the lack of protections.\u003c/p>\n\u003cp>In the Bay Area, most restaurants are now using one of these three platforms to deliver their food to customers. But there are a small number of venues that have chosen to go with a local delivery option, one with a completely different ownership structure.\u003c/p>\n\u003cp>That service is called the \u003ca href=\"https://www.candlestickcourier.com/\">Candlestick Courier Collective\u003c/a> (CCC). And it was started not by eager web entrepreneurs with infusions of venture funding, but by people from the Bay Area’s punk and fixed-gear bike scene who aspire to create a full-fledged co-op in which every rider has a share of ownership.\u003c/p>\n\u003cfigure id=\"attachment_11849756\" class=\"wp-caption aligncenter\" style=\"max-width: 1920px\">\u003ca href=\"https://ww2.kqed.org/app/uploads/sites/10/2020/12/ccc-1.jpg\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-11849756\" src=\"https://ww2.kqed.org/app/uploads/sites/10/2020/12/ccc-1.jpg\" alt=\"\" width=\"1920\" height=\"1103\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2020/12/ccc-1.jpg 1920w, https://cdn.kqed.org/wp-content/uploads/sites/10/2020/12/ccc-1-800x460.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2020/12/ccc-1-1020x586.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2020/12/ccc-1-160x92.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2020/12/ccc-1-1536x882.jpg 1536w\" sizes=\"(max-width: 1920px) 100vw, 1920px\">\u003c/a>\u003cfigcaption class=\"wp-caption-text\">Bike couriers in front of the Candlestick Courier Collective in San Francisco’s Tenderloin neighborhood. \u003ccite>(Sam Harnett/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>The effort is the latest iteration of a bike courier service that has been in the Bay Area since the early 2000s — mainly operating as an anarchist collective — with four owner-workers and a network of some 60 independent bike messengers. The collective is in the process of transitioning into a co-op, in which independent messengers will have a share of ownership in the business.\u003c/p>\n\u003cp>Headquartered just a few blocks from Uber headquarters in San Francisco’s Tenderloin neighborhood, the cavernous warehouse-like space is empty except a small office made of plywood, racks of bikes and a backroom outfitted with a drum set. Throughout the day, tattooed and pierced bike messengers pop in and out, grabbing radios and bikes, which are all communal.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>The collective’s clients are all local small businesses — primarily restaurants, including longtime regulars Udupi Palace, Jay’s Cheesesteak and Miss Saigon. Food ordered from them is delivered by a Candlestick Courier, not a gig worker from one of the big app services.\u003c/p>\n\u003cfigure id=\"attachment_11849705\" class=\"wp-caption aligncenter\" style=\"max-width: 1920px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"wp-image-11849705 size-full\" src=\"https://ww2.kqed.org/app/uploads/sites/10/2020/12/RS46179_022_KQED_SanFrancisco_CandlestickCourierCollective_12022020-qut.jpg\" alt=\"\" width=\"1920\" height=\"1280\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2020/12/RS46179_022_KQED_SanFrancisco_CandlestickCourierCollective_12022020-qut.jpg 1920w, https://cdn.kqed.org/wp-content/uploads/sites/10/2020/12/RS46179_022_KQED_SanFrancisco_CandlestickCourierCollective_12022020-qut-800x533.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2020/12/RS46179_022_KQED_SanFrancisco_CandlestickCourierCollective_12022020-qut-1020x680.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2020/12/RS46179_022_KQED_SanFrancisco_CandlestickCourierCollective_12022020-qut-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2020/12/RS46179_022_KQED_SanFrancisco_CandlestickCourierCollective_12022020-qut-1536x1024.jpg 1536w\" sizes=\"(max-width: 1920px) 100vw, 1920px\">\u003cfigcaption class=\"wp-caption-text\">Tasha Rose, one of four owner-workers at the Candlestick Courier Collective in San Francisco. \u003ccite>(Beth LaBerge/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>“We are working with local businesses and only local businesses because the whole goal is to put the money back into our pockets, back into restaurant pockets, back into the community,” said Tasha Rose, one of the four owner-workers.\u003c/p>\n\u003cp>At one point during college, while studying at UC Berkeley, Rose said she was so desperate for money she drove for Lyft, something she vows to never to do again.\u003c/p>\n\u003cp>“I would so much rather put that work and that time and that blood and sweat and tears into this,” she said.\u003c/p>\n\u003cp>Apps are constantly approaching the collective to “collaborate,” said Pierce McCleary, another worker-owner at CCC. “We’re really, really weary of new partners that seek our services because they’re really just trying to exploit our labor.”\u003c/p>\n\u003cp>[aside label=\"related coverage\" tag=\"gig-workers\"]The collective has been burned before — twice — and badly. First, it was with Grubhub, which had been partnering with couriers across the country. McCleary said the food-app company in 2017 canceled all its courier contracts overnight, and took over those services. Postmates, another food-ordering app, similarly made off with local bike courier’s clients, McCleary said.\u003c/p>\n\u003cp>“The second they get successful enough to vertically integrate and do it all their own, they’re going to kick you out the door,” he said.\u003c/p>\n\u003cp>McCleary said he’s disappointed California voted for Proposition 22. Allowing these companies to keep denying their workers benefits, he said, gives the big app services an unfair advantage against businesses like his that are trying to offer employee status to workers, let alone a shared-ownership co-op model.\u003c/p>\n\u003cp>Although still small, the collective has grown markedly during the pandemic, as more people rely on delivery service for many of their needs. In addition to food delivery, customers can also hire the service for general courier tasks.\u003c/p>\n\u003cp>The collective also recently started working with the New Harmony Cafe in San Francisco’s Mission District, which is participating in the \u003ca href=\"https://sfnewdeal.org/\">SF New Deal\u003c/a> program to provide food to quarantining seniors.\u003c/p>\n\u003cp>Ben Angel, the cafe’s owner, said it felt right to work with a collective rather than a delivery app that uses gig workers.\u003c/p>\n\u003cfigure id=\"attachment_11849702\" class=\"wp-caption aligncenter\" style=\"max-width: 1920px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"wp-image-11849702 size-full\" src=\"https://ww2.kqed.org/app/uploads/sites/10/2020/12/RS46180_023_KQED_SanFrancisco_CandlestickCourierCollective_12022020-qut.jpg\" alt=\"\" width=\"1920\" height=\"1280\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2020/12/RS46180_023_KQED_SanFrancisco_CandlestickCourierCollective_12022020-qut.jpg 1920w, https://cdn.kqed.org/wp-content/uploads/sites/10/2020/12/RS46180_023_KQED_SanFrancisco_CandlestickCourierCollective_12022020-qut-800x533.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2020/12/RS46180_023_KQED_SanFrancisco_CandlestickCourierCollective_12022020-qut-1020x680.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2020/12/RS46180_023_KQED_SanFrancisco_CandlestickCourierCollective_12022020-qut-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2020/12/RS46180_023_KQED_SanFrancisco_CandlestickCourierCollective_12022020-qut-1536x1024.jpg 1536w\" sizes=\"(max-width: 1920px) 100vw, 1920px\">\u003cfigcaption class=\"wp-caption-text\">Bike courier Gerry Valencia helps prepare a flower delivery order at the Candlestick Courier Collective’s headquarters in San Francisco’s Tenderloin neighborhood on Dec. 2, 2020. \u003ccite>(Beth LaBerge/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>“It’s a groundswell from the community instead, as opposed to, you know, a venture-funded, hyper-growth, ‘Let’s extract as much from the people and the companies that are our clients and customers,’ ” Angel said. “I used to work in tech and there are some great tech companies out there, but there are a lot of places that put profit over everything else.”\u003c/p>\n\u003cp>Gerry Valencia, one of CCC’s couriers, started working for the collective right at the beginning of the pandemic, and he said he likes that he is delivering exclusively for local businesses.\u003c/p>\n\u003cp>“I’d rather know who I’m working for and who I’m delivering for, rather than — today I am going to this random fast food spot that I’m never going to see again and deliver to these people for a faceless app,” he said.\u003c/p>\n\u003cp>Valencia’s parents are both immigrants. His father works as a gardener, his mom as a maid.\u003c/p>\n\u003cp>[ad floatright]\u003c/p>\n\u003cp>“My mom doesn’t understand how I am a worker and an owner,” he said. “If something happens, she’s like, ‘How do your bosses feel about that?’ And I’m like, ‘Mom, I am the boss. I just talk to the other ones and I explain this thing happened and they all understand.’ ”\u003c/p>\n\n",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003cp>If you order food from DoorDash, Uber Eats or Postmates, there’s a pretty good chance the person who delivers your meal has far fewer labor protections and benefits than you do.\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>Gig workers lack basic employee benefits such as a guaranteed minimum wage, overtime pay, workers’ compensation and unemployment insurance. And Proposition 22, which California voters \u003ca href=\"https://www.kqed.org/news/11843123/prop-22-explained-why-gig-companies-are-spending-huge-money-on-an-unprecedented-measure\">recently passed\u003c/a> after a historic spending campaign by gig companies, creates a new sub-employee category for those workers, codifying the lack of protections.\u003c/p>\n\u003cp>In the Bay Area, most restaurants are now using one of these three platforms to deliver their food to customers. But there are a small number of venues that have chosen to go with a local delivery option, one with a completely different ownership structure.\u003c/p>\n\u003cp>That service is called the \u003ca href=\"https://www.candlestickcourier.com/\">Candlestick Courier Collective\u003c/a> (CCC). And it was started not by eager web entrepreneurs with infusions of venture funding, but by people from the Bay Area’s punk and fixed-gear bike scene who aspire to create a full-fledged co-op in which every rider has a share of ownership.\u003c/p>\n\u003cfigure id=\"attachment_11849756\" class=\"wp-caption aligncenter\" style=\"max-width: 1920px\">\u003ca href=\"https://ww2.kqed.org/app/uploads/sites/10/2020/12/ccc-1.jpg\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-11849756\" src=\"https://ww2.kqed.org/app/uploads/sites/10/2020/12/ccc-1.jpg\" alt=\"\" width=\"1920\" height=\"1103\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2020/12/ccc-1.jpg 1920w, https://cdn.kqed.org/wp-content/uploads/sites/10/2020/12/ccc-1-800x460.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2020/12/ccc-1-1020x586.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2020/12/ccc-1-160x92.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2020/12/ccc-1-1536x882.jpg 1536w\" sizes=\"(max-width: 1920px) 100vw, 1920px\">\u003c/a>\u003cfigcaption class=\"wp-caption-text\">Bike couriers in front of the Candlestick Courier Collective in San Francisco’s Tenderloin neighborhood. \u003ccite>(Sam Harnett/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>The effort is the latest iteration of a bike courier service that has been in the Bay Area since the early 2000s — mainly operating as an anarchist collective — with four owner-workers and a network of some 60 independent bike messengers. The collective is in the process of transitioning into a co-op, in which independent messengers will have a share of ownership in the business.\u003c/p>\n\u003cp>Headquartered just a few blocks from Uber headquarters in San Francisco’s Tenderloin neighborhood, the cavernous warehouse-like space is empty except a small office made of plywood, racks of bikes and a backroom outfitted with a drum set. Throughout the day, tattooed and pierced bike messengers pop in and out, grabbing radios and bikes, which are all communal.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>The collective’s clients are all local small businesses — primarily restaurants, including longtime regulars Udupi Palace, Jay’s Cheesesteak and Miss Saigon. Food ordered from them is delivered by a Candlestick Courier, not a gig worker from one of the big app services.\u003c/p>\n\u003cfigure id=\"attachment_11849705\" class=\"wp-caption aligncenter\" style=\"max-width: 1920px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"wp-image-11849705 size-full\" src=\"https://ww2.kqed.org/app/uploads/sites/10/2020/12/RS46179_022_KQED_SanFrancisco_CandlestickCourierCollective_12022020-qut.jpg\" alt=\"\" width=\"1920\" height=\"1280\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2020/12/RS46179_022_KQED_SanFrancisco_CandlestickCourierCollective_12022020-qut.jpg 1920w, https://cdn.kqed.org/wp-content/uploads/sites/10/2020/12/RS46179_022_KQED_SanFrancisco_CandlestickCourierCollective_12022020-qut-800x533.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2020/12/RS46179_022_KQED_SanFrancisco_CandlestickCourierCollective_12022020-qut-1020x680.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2020/12/RS46179_022_KQED_SanFrancisco_CandlestickCourierCollective_12022020-qut-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2020/12/RS46179_022_KQED_SanFrancisco_CandlestickCourierCollective_12022020-qut-1536x1024.jpg 1536w\" sizes=\"(max-width: 1920px) 100vw, 1920px\">\u003cfigcaption class=\"wp-caption-text\">Tasha Rose, one of four owner-workers at the Candlestick Courier Collective in San Francisco. \u003ccite>(Beth LaBerge/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>“We are working with local businesses and only local businesses because the whole goal is to put the money back into our pockets, back into restaurant pockets, back into the community,” said Tasha Rose, one of the four owner-workers.\u003c/p>\n\u003cp>At one point during college, while studying at UC Berkeley, Rose said she was so desperate for money she drove for Lyft, something she vows to never to do again.\u003c/p>\n\u003cp>“I would so much rather put that work and that time and that blood and sweat and tears into this,” she said.\u003c/p>\n\u003cp>Apps are constantly approaching the collective to “collaborate,” said Pierce McCleary, another worker-owner at CCC. “We’re really, really weary of new partners that seek our services because they’re really just trying to exploit our labor.”\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>The collective has been burned before — twice — and badly. First, it was with Grubhub, which had been partnering with couriers across the country. McCleary said the food-app company in 2017 canceled all its courier contracts overnight, and took over those services. Postmates, another food-ordering app, similarly made off with local bike courier’s clients, McCleary said.\u003c/p>\n\u003cp>“The second they get successful enough to vertically integrate and do it all their own, they’re going to kick you out the door,” he said.\u003c/p>\n\u003cp>McCleary said he’s disappointed California voted for Proposition 22. Allowing these companies to keep denying their workers benefits, he said, gives the big app services an unfair advantage against businesses like his that are trying to offer employee status to workers, let alone a shared-ownership co-op model.\u003c/p>\n\u003cp>Although still small, the collective has grown markedly during the pandemic, as more people rely on delivery service for many of their needs. In addition to food delivery, customers can also hire the service for general courier tasks.\u003c/p>\n\u003cp>The collective also recently started working with the New Harmony Cafe in San Francisco’s Mission District, which is participating in the \u003ca href=\"https://sfnewdeal.org/\">SF New Deal\u003c/a> program to provide food to quarantining seniors.\u003c/p>\n\u003cp>Ben Angel, the cafe’s owner, said it felt right to work with a collective rather than a delivery app that uses gig workers.\u003c/p>\n\u003cfigure id=\"attachment_11849702\" class=\"wp-caption aligncenter\" style=\"max-width: 1920px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"wp-image-11849702 size-full\" src=\"https://ww2.kqed.org/app/uploads/sites/10/2020/12/RS46180_023_KQED_SanFrancisco_CandlestickCourierCollective_12022020-qut.jpg\" alt=\"\" width=\"1920\" height=\"1280\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2020/12/RS46180_023_KQED_SanFrancisco_CandlestickCourierCollective_12022020-qut.jpg 1920w, https://cdn.kqed.org/wp-content/uploads/sites/10/2020/12/RS46180_023_KQED_SanFrancisco_CandlestickCourierCollective_12022020-qut-800x533.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2020/12/RS46180_023_KQED_SanFrancisco_CandlestickCourierCollective_12022020-qut-1020x680.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2020/12/RS46180_023_KQED_SanFrancisco_CandlestickCourierCollective_12022020-qut-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2020/12/RS46180_023_KQED_SanFrancisco_CandlestickCourierCollective_12022020-qut-1536x1024.jpg 1536w\" sizes=\"(max-width: 1920px) 100vw, 1920px\">\u003cfigcaption class=\"wp-caption-text\">Bike courier Gerry Valencia helps prepare a flower delivery order at the Candlestick Courier Collective’s headquarters in San Francisco’s Tenderloin neighborhood on Dec. 2, 2020. \u003ccite>(Beth LaBerge/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>“It’s a groundswell from the community instead, as opposed to, you know, a venture-funded, hyper-growth, ‘Let’s extract as much from the people and the companies that are our clients and customers,’ ” Angel said. “I used to work in tech and there are some great tech companies out there, but there are a lot of places that put profit over everything else.”\u003c/p>\n\u003cp>Gerry Valencia, one of CCC’s couriers, started working for the collective right at the beginning of the pandemic, and he said he likes that he is delivering exclusively for local businesses.\u003c/p>\n\u003cp>“I’d rather know who I’m working for and who I’m delivering for, rather than — today I am going to this random fast food spot that I’m never going to see again and deliver to these people for a faceless app,” he said.\u003c/p>\n\u003cp>Valencia’s parents are both immigrants. His father works as a gardener, his mom as a maid.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cp>California Proposition 22 was a big win for tech companies. Its passage allows a handful of corporations — like Uber and Lyft — to create a new “gig” contractor category for their workers that doesn’t have to include employee protections and benefits, like unemployment insurance and workers compensation. Now, those same companies that won in California want to expand beyond the state.\u003c/p>\n\u003cp>\u003cb data-stringify-type=\"bold\">Guest: \u003c/b>\u003ca href=\"https://twitter.com/SamWHarnett\">Sam Harnett\u003c/a>, Silicon Valley Reporter for KQED\u003c/p>\n\u003cp>\u003cem>Listen to our special series ‘How We Got Here’ with Sam \u003ca href=\"https://www.kqed.org/howwegothere\">here.\u003c/a>\u003c/em>\u003c/p>\n\u003cp>\u003c!-- iframe plugin v.4.3 wordpress.org/plugins/iframe/ -->\u003cbr>\n\u003ciframe loading=\"lazy\" frameborder=\"0\" height=\"200\" scrolling=\"no\" src=\"https://playlist.megaphone.fm?e=KQINC8406238167&light=true\" width=\"100%\" class=\"iframe-class\">\u003c/iframe>\u003c/p>\n\u003cp>\u003cem>Read the transcript \u003ca href=\"https://bit.ly/3eSSCCw\" target=\"_blank\" rel=\"noopener noreferrer\">here\u003c/a>. And sign up for our newsletter \u003ca href=\"https://bit.ly/2Ij412e\">here\u003c/a>!\u003c/em>\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\u003cp>\u003c/p>\n",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003cp>California Proposition 22 was a big win for tech companies. Its passage allows a handful of corporations — like Uber and Lyft — to create a new “gig” contractor category for their workers that doesn’t have to include employee protections and benefits, like unemployment insurance and workers compensation. Now, those same companies that won in California want to expand beyond the state.\u003c/p>\n\u003cp>\u003cb data-stringify-type=\"bold\">Guest: \u003c/b>\u003ca href=\"https://twitter.com/SamWHarnett\">Sam Harnett\u003c/a>, Silicon Valley Reporter for KQED\u003c/p>\n\u003cp>\u003cem>Listen to our special series ‘How We Got Here’ with Sam \u003ca href=\"https://www.kqed.org/howwegothere\">here.\u003c/a>\u003c/em>\u003c/p>\n\u003cp>\u003c!-- iframe plugin v.4.3 wordpress.org/plugins/iframe/ -->\u003cbr>\n\u003ciframe loading=\"lazy\" frameborder=\"0\" height=\"200\" scrolling=\"no\" src=\"https://playlist.megaphone.fm?e=KQINC8406238167&light=true\" width=\"100%\" class=\"iframe-class\">\u003c/iframe>\u003c/p>\n\u003cp>\u003cem>Read the transcript \u003ca href=\"https://bit.ly/3eSSCCw\" target=\"_blank\" rel=\"noopener noreferrer\">here\u003c/a>. And sign up for our newsletter \u003ca href=\"https://bit.ly/2Ij412e\">here\u003c/a>!\u003c/em>\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"info": "Possible is hosted by entrepreneur Reid Hoffman and writer Aria Finger. Together in Possible, Hoffman and Finger lead enlightening discussions about building a brighter collective future. The show features interviews with visionary guests like Trevor Noah, Sam Altman and Janette Sadik-Khan. Possible paints an optimistic portrait of the world we can create through science, policy, business, art and our shared humanity. It asks: What if everything goes right for once? How can we get there? Each episode also includes a short fiction story generated by advanced AI GPT-4, serving as a thought-provoking springboard to speculate how humanity could leverage technology for good.",
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