Massachusetts
Massachusetts top court clears way for gig worker ballot measures to proceed – ETHRWorld
By Nate Raymond
BOSTON : The Massachusetts top court on Thursday cleared the way for voters in the state to decide whether drivers for app-based companies like Uber Technologies and Lyft should be classified as independent contractors who would be entitled to some new benefits but would not be legally employees.
The Massachusetts Supreme Judicial Court rejected a labor-supported challenge to an industry-backed coalition’s proposal to cement the drivers as contractors. But it also said it would allow a dueling ballot measure that would allow the drivers to unionize to move forward.
The decision came ahead of closing arguments set for Friday in a trial in a lawsuit pursued by the state’s Democratic attorney general, Andrea Joy Campbell, accusing Uber and Lyft of misclassifying their drivers as contractors, not employees.
Should the industry fail in court and at the ballot box, Uber and Lyft could face a sweeping overhaul of their business models, one that lawyers for the companies have said could force them to cut or end service in Massachusetts.
Using contractors can cost companies as much as 30% less than hiring employees, various studies showed.
Uber and Lyft, along with app-based delivery services Instacart and DoorDash, have spent millions of dollars to support the ballot proposal that would cement the status of their drivers as contractors under state law.
Flexibility and Benefits for Massachusetts Drivers, a ballot measure committee whose contributors include the four ride-share companies, is also proposing setting an earnings floor for app-based drivers and providing them healthcare stipends, occupational accident insurance and paid sick time.
They’re pushing it after the industry through a $200 million campaign in 2020 convinced California voters to pass a measure similar to the one backed by the companies in Massachusetts, solidifying drivers as independent contractors with some benefits. Litigation challenging that measure is ongoing.
The Massachusetts court in 2022 blocked a similar industry-backed ballot measure. To hedge its bets this time, supporters gathered signatures for five versions of their ballot question, only one of which they will put before voters on Nov. 5. Final signatures for the ballot measure will be turned in July 2.
A separate proposed ballot measure supported by the Service Employees International Union’s Local 32BJ seeks to ask voters to allow Uber and Lyft drivers to unionize.
Conor Yunits, the industry-backed campaign’s spokesperson, called Thursday’s ruling “a huge win and a great day for rideshare and delivery drivers.”
The court rejected a challenge by a labor-affiliated coalition called Massachusetts Is Not For Sale to Campbell’s certification of the industry’s question for potential inclusion on the ballot. The group said the proposal wrongly addressed not one policy question but several bundled together.
But Justice Gabrielle Wolohojian, writing for a 6-0 court, said the provisions in even the broadest of the five proposals “share a single common purpose: establishing and defining the relationship between the drivers and the companies.”
Chrissy Lynch, the president of the Massachusetts chapter of the union AFL-CIO and chair of Massachusetts Is Not For Sale, called the ruling “an unprecedented step back for the voters, workers, consumers, taxpayers and law-abiding businesses of the Commonwealth of Massachusetts, which should not be for sale.” (Reporting by Nate Raymond in Boston, Editing by Franklin Paul and Nick Zieminski)
Massachusetts
Police to address Princeton death during child sexual abuse material investigation
Authorities will speak Friday after a death occurred while police were serving a search warrant for child sexual abuse material in Princeton, Massachusetts.
The subject of the search warrant “was a person of trust in communities in Worcester and Middlesex Counties,” Massachusetts State Police said.
Authorities said little about the case ahead of the press conference, which will begin at 6 p.m. and be streamed in the player above.
State police will be hosting the conference, which will include Princeton Police Chief Paul Patricia, Worcester County District Attorney Joseph Early Jr. and Middlesex County District Attorney Marian Ryan.
Check back for more as this story develops.
Massachusetts
Mass. unveils $250 million in subsidies to protect residents from premium hikes – The Boston Globe
Audrey Morse Gasteier, executive director of the Massachusetts Health Connector, said the financial bulwark that benefited 270,000 residents is “part of the reason that we’re hanging in there in terms of enrollment and keeping people covered.”
But Thursday’s announcement won’t translate into any additional help.
Healey’s news conference coincided with the beginning of an election year in which three Republicans are vying for her job and voters are expected to be particularly focused on the state’s high cost of living. One survey last year found Massachusetts had the second highest cost of living in the country. People who saw their insurance premiums increase this year said it was one pricey bill amid an onslaught of growing expenses.
“I can’t believe how much it is when we go to the grocery store. Our electricity has gone up,“ said Judith O’Gara, whose family was hit with a $400 increase a month in insurance premiums for their ACA plan in January. ”We were just bracing ourselves to try to stretch the paycheck further.”
O’Gara, of Millis, is a part-time editor at community newspapers, and her husband is a self-employed computer animator and mural artist. She has added hours at work, she said, but it still wasn’t enough to qualify for health coverage through her employer, leaving the couple to buy insurance through the connector.
Healey also used the news conference to weigh in on a high-profile effort in Congress to revive the federal subsidies. Also on Thursday, the US House, with help from 17 Republican defectors facing competitive reelection races, passed a bill that would extend the subsidies for another three years. A small group of senators is considering proposing their own extension of the subsidies.
“We need to see people in Congress step up and take action and fight the president on this and get him to focus on the domestic agenda and how to make life more affordable for people,” Healey said.
The governor said she didn’t announce the influx of funds earlier because she had hoped Congress would act before the end of 2025.
“We gave up until the deadline to see if they take action,” she said.
ACA open enrollment extends through Jan. 23.
The infusion of funds from the Commonwealth Care Trust Fund brings the state’s total commitment to the insurance marketplace to $600 million, which Healey said is the largest support from any state in the country.
Federally subsidized insurance policies were first made available to people making less than 400 percent of the federal poverty level, or about $128,600 for a family of four, in 2009 under President Barack Obama’s ACA, also known as Obamacare. In 2021, Congress made those subsidies more generous for many recipients and extended them to people earning up to 500 percent of the federal poverty level. The expanded tax credits doubled participation in the ACA exchanges over the past four years, and by last year 337,000 people in Massachusetts received subsidized insurance through ConnectorCare.
The increases were slated to expire after four years, and without congressional action to preserve them, premiums reverted to pre-2021 levels for this year. People earning more than 400 percent of the poverty level became ineligible to receive subsidized insurance. State officials have estimated roughly 300,000 people could become uninsured statewide over the next decade, in part due to the expiration of the tax credits.
Democrats staged a 43-day shutdown last fall, the longest in US history, in an unsuccessful effort to preserve the expanded subsidies.
The Commonwealth Care Trust Fund predates the 2021 coverage expansion, said Doug Howgate, president of the Massachusetts Taxpayers Foundation, a nonprofit budget watchdog, and was established to support ConnectorCare programs. Massachusetts has long had a robust public insurance program, and the 2021 expansion essentially allowed the state to shift the cost of subsidies it had been paying to the federal government. Tapping the trust fund now essentially returns Massachusetts to the support levels it provided prior to 2021, Howgate said.
Regardless of the timing of Healey’s announcement, it is a reality that Massachusetts has a uniquely robust commitment to health insurance access, Howgate said.
“I do think that the idea that the state is able to offset some of those impacts is an important message to get out there,” he said. “This is real money.”
According to Healey’s office, a 45-year-old couple with two kids making $75,000 in Fall River previously paid $166 per month for the lowest-cost coverage. Without state action, their premium would have more than doubled. But with the infusion from the trust fund, they will pay $206 per month.
There’s only so much the state can do to mitigate the impacts of the expired subsidies, though. Because Congress didn’t extend them, people between 400 and 500 percent of the federal poverty level simply are ineligible to sign up for subsidized policies through the ACA marketplace. There are roughly 27,000 people statewide who cannot benefit from the state’s effort to compensate for the lost federal money, and those people are among those facing the biggest new insurance expenses.
Christa, 56, a hair dresser, and her husband, Gary, 69, a truck driver, earn less than $105,750 annually combined, just shy of 500 percent of the poverty level. The couple, who asked not to be named to protect their privacy, went from paying $282-a-month for Christa’s insurance with no deductible, to a private plan costing $725 a month with a $2000 deductible.
Gary, who is enrolled in Medicare, is still counting on Congress for a reprieve.
“I believe the Senate will be forced to do something, and we’re hoping,” he said.
Jason Laughlin can be reached at jason.laughlin@globe.com. Follow him @jasmlaughlin.
Massachusetts
Healey shares plan to limit health insurance cost increases for Massachusetts residents
Gov. Maura Healey said Thursday that the state is spending an additional $250 million to limit premium increases for residents who have insurance through the Massachusetts Health Connector.
After Congress let Affordable Care Act tax credits expire at the end of last year, more than 300,000 people in Massachusetts have been facing a potentially steep increase in their health care bills.
The governor’s office said those enrolled in ConnectorCare who make below 400% of the of the federal poverty level, which is $62,600 for an individual or $128,600 for a family of four, will see “little to no premium increases.”
Under the plan, Healey’s office said a 45-year-old couple with two kids in Fall River will see their monthly health insurance costs rise from $166 to $206. Without the new funding, the governor says they would be paying $452 a month.
“While President Trump continues to increase health care costs, we are taking the strongest action in the nation to address them and keep costs as low as possible for families,” Healey said in a statement. “Despite this increased state investment, far too many people will still see their premiums increase because of the White House.”
The U.S. House of Representatives is set to approve a three-year extension of the health care tax credits. While it appears unlikely to pass the Senate, senators have talked about a compromise plan that could include a two-year extension with added reforms. President Trump hasn’t offered a specific health care plan, but said subsidies going to insurance companies should “go to the people” instead.
The $250 million is coming from the Commonwealth Care Trust Fund, which gets its money from employer medical assistance contributions and financial penalties from residents who violate the state’s health care insurance mandate.
Massachusetts residents can sign up for health insurance coverage or switch their Health Connector plans until Jan. 23 if they want to be covered by Feb. 1.
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