Monday, June 17, 2024

Decoding California’s gig worker alphabet soup

Delivered every Monday by 10 a.m., Weekly Shift examines the latest news in employment, labor and immigration politics and policy.
Jun 17, 2024 View in browser
 
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By Lawrence Ukenye

With help from Nick Niedzwiadek

Programming Note: We’ll be off on Wednesday for Juneteenth but will be back in your inboxes on Friday.

A photograph shows the Uber Eats app on a smart phone.

A pending California Supreme Court case will determine if delivery and ride-hailing companies are able to classify their workers as independent contractors. | Ben Stansall/AFP via Getty Images

QUICK FIX

WHERE THERE’S A WILL…: Gig employers in California are running out of options to ensure their workers remain independent contractors.

A federal court last week rejected Uber and Postmates’ challenge to California AB 5, a law that codified a 2018 state Supreme Court ruling that created an “ABC” test for determining if gig workers are employees or independent contractors.

The ruling is the latest salvo in the battle between gig employers and courts over how workers will be classified and raises the stakes for another state high court case that centers on the issue.

Labor groups, including the California Labor Federation, applauded the federal court decision, calling it a “victory for all workers in the state,” while Uber signaled in a statement to POLITICO that it has its eyes on Proposition 22. The ballot initiative, approved by voters in 2020, includes a carve out to ensure ride-hailing workers are classified as independent contractors.

The California Supreme Court heard oral arguments in May on a challenge to Prop 22 backed by the Service Employees International Union. Ken Jacobs, co-chair of the University of California, Berkeley, Center for Labor Research and Education, believes the court is likely to respect the will of the voters by keeping the measure intact.

However, he acknowledges the case might be the companies’ last, best chance at preventing their workers from becoming employees, arguing that firms have a weak argument under the current parameters within AB 5 and its ABC test.

While companies would argue their workers are independent contractors under the state’s three-prong test, Jacobs believes the assertion falls flat because of the amount of control ride-hailing and delivery platforms have over drivers’ wages and employment conditions.

“The argument they have tried to make is that they’re not in the business of delivering food or giving passengers rides,” Jacobs said. “I think that is completely ludicrous.”

GOOD MORNING. It’s Monday, June 17. Welcome back to Morning Shift, your go-to tipsheet on labor and employment-related immigration. Your host thinks all protests should include inflatable cats. Send feedback, tips and exclusives to nniedzwiadek@politico.com and lukenye@politico.com. Follow us on X at @NickNiedz and @Lawrence_Ukenye.

 

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AROUND THE AGENCIES

WATCHING THE WATCHMAN: The Equal Employment Opportunity Commission’s oversight of other federal agencies’ policies against workplace discrimination has room for improvement, the Government Accountability Office said in a report released last week.

In addition to its primary role going after employment-based discrimination in the private sector, the EEOC also helps monitor compliance across the federal government.

However, the EEOC does not have a uniform way of documenting and tracking the situation at various agencies — which the GAO said could limit the ability to identify trends or common issues.

“Improved monitoring processes would result in more complete, accurate, and useful information to aid EEOC’s oversight responsibilities,” the report states. “A policy requiring that EEOC staff use a standardized method to track deficiencies would ensure a consistent approach to recording EEO program deficiencies.”

In a response to the GAO’s draft findings, EEOC Chair Charlotte Burrows said that the agency broadly agreed with its recommendations, while noting some budgetary and other hurdles to doing so.

“We were pleased to work with GAO on its report and will work on implementing the recommendations, subject to available resources,” EEOC spokesperson said in a statement Friday.

More agency news:Court rules for DHS employees alleging their division was disbanded in retaliation to their whistleblowing,” from the Government Executive.

Unions

2025 WATCH: Sean Spiller, the president of the powerful New Jersey Education Association and outgoing mayor of Montclair, New Jersey, after a controversial single term, is running for the Democratic nomination for governor, our Matt Friedman reports.

The 49-year-old Spiller started his career as science teacher, most recently teaching in Wayne schools before taking executive positions in the roughly 200,000-member union that’s long exercised major influence in Trenton, especially among its Democratic politicians.

He enters an already crowded Democratic field, with three high-profile Democrats so far running: Newark Mayor Ras Baraka, Jersey City Mayor Steven Fulop and former Senate President Steve Sweeney.

More union news: "Fuming Defenders of Wildlife staffers move toward strike," from POLITICO's E&E News' Robin Bravender.

On the Hill

ALL ABOUT THE MONEY: Civilian federal employees are still slated to receive a 2 percent wage increase after a spending package approved by House appropriators last week made no mention of the pay bump, Government Executive reported.

Members of Congress, however, are not looking as fortunate as appropriators blocked a pay raise for legislators — a freeze that’s gone on for a decade-and-a-half. Lawmakers, both on Capitol Hill and statehouses, are persistently wary of the optics of fattening their own bank accounts with taxpayers’ money, though as The Washington Post notes, it can push people out of public service in favor of higher-paying corporate roles or onto K Street.

More Hill news:Freedom Caucus member takes unprecedented step backing chair’s challenger,” from our Olivia Beavers.

IN THE STATES

ON THE TRAIL: Former President Donald Trump tried to court Black voters in Detroit over the weekend by warning about the threats posed by the arrival of undocumented migrants and the Biden administration’s emphasis on electric vehicles, The Detroit News reported.

Trump also took a jab at United Auto Workers President Shawn Fain, whom he called “crazy.” The UAW endorsed Biden earlier this year.

Supremacy Clause 101: 'It's confusing': Iowa restaurant owner fined for child labor violations despite following state law,” from KCCI.

IMMIGRATION

A HISTORIC MOVE: The Biden administration is preparing to announce a sweeping plan that would offer work permits and deportation protections for undocumented immigrants married to U.S. citizens if they have lived in the country for at least 10 years, CBS News reported.

"The proposal, known as ‘Parole in Place,’ would also open up a pathway to permanent legal status and U.S. citizenship for some beneficiaries by removing an obstacle in U.S. law that prevents those who entered the U.S. illegally from obtaining green cards without leaving the country.”

CHUGGING ALONG: The U.S. Citizenship and Immigration Services Director Ur Jaddou told members of the American Immigration Lawyers Association last week that the agency is making progress in processing the long backlog of work permit applications, Bloomberg Law reported.

USCIS received nearly 4 million applications for employment authorizations last year and also reduced its overall backlog by 15 percent.

More immigration news: Biden’s border move infuriated progressives. He’s trying to fix that,” from our Myah Ward and Lisa Kashinsky.

 

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WHAT WE'RE READING

— "The most common jobs in America, and more!" from The Washington Post.

— Opinion: "The Supreme Court Ruling in the Starbucks Case Proves the Law Won’t Save Labor," from The New York Times.

— "America’s top central banker says the job market is back to normal. Is that right?" from CNN.

— “Pete Buttigieg’s Paternity Leave Was Complicated. Here’s What He Learned,” from GQ.

— "Degree? Yes. Job? Maybe not yet," from The Washington Post.

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