Rigidity and Flexibility: Unions in the On-Demand Economy?

by Liya Palagashvili

A couple months ago, a judge ruled in favor of Seattleā€™s ordinance that will allow ridesharing drivers to engage in collective bargaining agreements. The ordinance has granted the labor union, Teamsters, the right to represent drivers for companies such as Uber and Lyft. Under current U.S. labor laws, the National Labor Relations Board (NLRA) gives employees the right to unionize, but ridesharing drivers are legally classified as independent contractors, and thus outside of the purview of this legislation. The U.S. Chamber of Commerce has initiated litigation to challenge the validity of this ordinance on several grounds (e.g., preemption by NLRA, antitrust violations), though while in the appeals process, the city has begun to move forward to implement this first-in-the-nation law.

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