Gig workers get an 眉ber-lift
Massachusetts has become the first state to approve collective bargaining for drivers for ride-hailing services, while maintaining flexibility and contractor independence. This might be a model for other workers in the evolving, internet-based economy.
Massachusetts has become the first state to approve collective bargaining for drivers for ride-hailing services, while maintaining flexibility and contractor independence. This might be a model for other workers in the evolving, internet-based economy.
Thousands of drivers for ride-hailing services across Massachusetts are feeling a little more secure in the driver鈥檚 seat this week. On Tuesday, Democratic Gov. Maura Healey and labor representatives announced America鈥檚 first statewide law enabling collective bargaining and representation for gig or app-linked drivers, while still maintaining their status as independent contractors for services such as Uber and Lyft.
鈥淔or years, drivers have had no voice. We were treated like we were invisible,鈥 a member of the new App Drivers Union told a New England television station. 鈥淭oday ... we have a seat at the table.鈥
Like 鈥渢he shot heard round the world,鈥 this Massachusetts move might reverberate beyond the commonwealth鈥檚 estimated 70,000 drivers for ride-hailing services 鈥 to the nation鈥檚 wider gig economy of temporary jobs and side hustles. Recent studies estimate 42 million people in the United States engaged in gig work in 2025. More than 1 in 10 relied on it for their primary income, while 10.2% sought it out to supplement other earnings.
Many choose such work for the flexibility and independence it allows. But in doing so, they forgo standard employment benefits and make what Uber CEO Dara Khosrowshahi once called a 鈥渇alse choice.鈥
鈥淥ur current employment system is outdated and unfair,鈥 Mr. Khosrowshahi argued in The New York Times in 2020. 鈥淚t forces every worker to choose between being an employee with more benefits but less flexibility, or an independent contractor with more flexibility but almost no safety net.鈥
At the time, he advocated for a benefit fund for gig workers.
Many U.S. labor regulations date back decades, and were designed for the industrial era. Since the turn of this century, however, high-speed internet access has proved transformative for workers and consumers around the country (and the world). Online platforms such as Amazon, Etsy, and DoorDash provide everyday convenience and links to inputs, transport, and markets.
But, directed by ordering apps and algorithms, independent workers have little recourse when wage rates shrink or pressures increase to deliver or drive faster. Gig workers, backed by many of their customers, want transparency in pricing and a higher cut of revenue. In April, Lyft took a step in that direction, promising to cap its fee at 30% and simplify deductions for insurance, taxes, and government fees.
The challenge for elected officials, employers, and labor representatives is to review American labor laws to keep pace with the opportunities in an evolving economy 鈥 but also to shore up trust in the system鈥檚 evenhandedness and ability to address challenges.
As one driver told the National Employment Law Project, 鈥淭his isn鈥檛 just about money. It鈥檚 about dignity and respect.鈥