Lyft emerges as fundraising heavyweight in Massachusetts ahead of vote on gig work ballot initiative
Gig work-based companies such as food delivery apps and rideshare services are pouring millions into supporting a Massachusetts ballot initiative that would solidify their workers’ status as independent contractors instead of employees.
Rideshare company Lyft has already given a hefty $14 million in support of the Massachusetts measure, in hopes of being able to classify their drivers as independent contractors, which would allow Lyft to not provide drivers certain employee benefits such as health insurance and paid vacation.
The Massachusetts ballot initiative, which would classify app-based drivers as independent contractors and enact labor policies, could appear on the ballot during the state’s Nov. 8 election pending either legislature approval or further signature collection.
The issue of gig work classification was first raised statewide last year in California.
A ballot measure that would allow gig workers to be classified as independent contractors in most cases — Prop. 22 — passed in 2020, handing a big win to gig work-based companies that put more than $200 million behind the measure, according to OpenSecrets data. Although the measure passed, a judge later ruled it unconstitutional and an appeal is pending.
Now, as Massachusetts considers a proposition similar to Prop. 22, companies are replicating their strategy from 2020 by throwing millions of dollars into the effort.
In addition to Lyft’s $14 million, Uber, DoorDash and Instacart have each injected more than $1 million into funding the Massachusetts measure.
According to the Boston Globe, Lyft’s donation is the largest political contribution the state has ever recorded — easily surpassing the previous record of General Motors’ $5.1 million contribution to fight a successful 2020 ballot measure that would allow auto shops to access more information about the cars they repair.
The majority of Lyft’s $14 million came in the form of a $13 million donation given on Dec. 30. Prior to the end-of-year contribution, Instacart had given the largest single sum of about $978,000.
The Massachusetts measure would classify gig workers as independent contractors instead of employees while providing some benefits, including establishing a pre-tips earning floor equivalent to 120% of the state’s minimum wage and health care stipends for those who work more than 15 hours per week.
Opponents of the measure argue classifying gig workers as independent contractors instead of employees deprives workers of labor rights.
Massachusetts Attorney General Maura Healey filed a suit in July 2020 claiming that rideshare drivers are already considered employees under state law and that companies have misclassified them as independent contractors.
“Uber and Lyft have built their billion-dollar businesses while denying their drivers basic employee protections and benefits for years,” Healey said. “This business model is unfair and exploitative. We are seeking this determination from the court because these drivers have a right to be treated fairly.”
Other opponents of the measure are also seeking to block it from appearing on the ballot in November.
If passed, the ballot initiative would cement Uber and Lyft’s independent contractor classification — provided no judge later deems it unconstitutional as in California.
Aside from contributing to gig work-related ballot measures, Lyft and Uber are frequent donors in state and local elections, and leverage millions of dollars in lobbying.
Lyft has spent $63 million in contributions mostly to statewide candidates and committees since 2016 — $49 million of which went to the ballot measure committee on California’s Prop. 22. The company has also spent more than $12 million in state-level lobbying since 2013.
Those figures are on par with Uber, which gave a total $61 million to statewide candidates and committees since 2016, with a larger percentage than Lyft going toward California’s Prop. 22 ($59 million). Uber, however, has spent considerably more on lobbying, spending $30 million since 2013.
Both parties have recently focused their lobbying heavily on the bipartisan Sami’s Law, which would require rideshare drivers to display lighted signs and a scannable QR code for passengers to verify their identity. The bill is named after a college student who was killed after getting into a fake Uber.
Aside from nonpartisan ballot measures, both companies’ political activity skews Democratic.
Excluding contributions to ballot measure committees, Lyft has given roughly 150% more to Democratic causes than Republican ones — a notably higher percentage than Uber’s rate of giving 63% more to Democratic causes.
In certain instances, Lyft was an equal opportunity donor, giving similar amounts to committees of both parties. For example, during the 2020 cycle, Lyft gave $20,000 to the Florida Republican Committee but also gave $9,000 to the Florida Democratic Party and $3,000 to the Florida Democratic Legislative Campaign Committee. In the same cycle, Lyft gave $15,000 to the Texas Republican Legislative Caucus, but in 2016, it gave $5,000 to both the Texas Republican and Democratic parties.
Although Uber gives to candidates and committees less frequently than Lyft, a similar pattern can be seen.
In 2020, Uber gave $15,000 to the Florida Republican Senate Campaign Committee while also contributing $10,000 to the Florida Democratic Legislative Campaign Committee. And in 2018, Uber contributed $45,000 to the California Democratic Party while also giving the state’s Republican Party $20,000.
Feb. 1, 2021 Correction: This story has been updated to show that AG Maura Healey is not seeking to block the ballot initiative appearing on the ballot in November and clarify other information about the ballot initiative process in Massachusetts.
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