Tech Companies Spend Millions To Back MA Ballot Initiative

BOSTON — Food delivery apps and rideshare companies are contributing millions of dollars in support of a Massachusetts ballot initiative that, if passed in November's general election, would classify their workers as independent contractors instead of employees.

While Uber, DoorDash and Instacart have all contributed more than $1 million, Lyft broke a state record for the biggest political contribution by donating $14 million to the Flexibility and Benefits for Massachusetts Drivers committee. By classifying their drivers as independent contractors, the companies can avoid providing certain benefits, including health insurance and paid vacation time.

Last year, the Flexibility and Benefits for Massachusetts Drivers committee raised more than $17 million, including $13 million from Lyft on Dec. 30, according to state campaign finance records.

The measure would add some benefits for gig economy workers in Massachusetts, including pre-tips earning floor equivalent to 120% of the state’s minimum wage and health care stipends for people who work more than 15 hours per week.

Last month, a labor-backed coalition fighting the proposed ballot questions asked for a review by the state Supreme Judicial Court, claiming the Attorney General's office had wrongfully certified the petition. The Coalition to Protect Workers’ Rights wants the court to block the Secretary of State's office from including the question on the November ballot.

The opposition group is using the same legal tactic that got the state's highest court to remove the "millionaire's tax" initiative from the 2018 ballot.

In 2020, California voters sided with the tech companies and approved a similar measure. The $201 million spent by both sides in the campaign, known as Proposition 22, was the most for a ballot petition in the state's history.

Since then, the new rule has been stuck in a legal battle, with a state court judge ruled California's Proposition 22 unconstitutional. That ruling is currently being appealed.