dglobalnews.com Thousands fail background checks for Uber, Lyft
Published: Thu, April 06, 2017
Tech | By Arthur Brown

Thousands fail background checks for Uber, Lyft

Thousands fail background checks for Uber, Lyft

State officials say more than 8,000 people who applied to drive for ride-hailing companies, like Uber and Lyft, in MA have failed a required background check.

The law in question passed the Seattle city council in a 9-0 vote back in December 2015. The Chamber argued the law classified drivers as employees, when really they are independent contractors with no collective bargaining power.

"The court emphasizes that this order should not be read as a harbinger of what the ultimate decision in this case will be when all dispositive motions are fully briefed and considered", he added.

The Chamber claimed the law posed an immediate threat to companies like Uber and Lyft because it requires them to hand over the names of their drivers to unions hoping to organize drivers.

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Federal antitrust laws allow states or cities to adopt reasonable regulations to protect the public interest, even if they have anti-competitive effects, such as price-fixing for taxi fares. "Whether existing state law covers, or was meant to cover, the sort of regulation the city attempts through the ordinance is far from clear". The Chamber contends that while drivers have been permitted to set uniform rates to deter under-charing, they have never been able to collectively bargain.

Gearhart: "We're disappointed with the fact that the companies would rather take the City of Seattle to court than sit down and negotiate with their drivers and start improving their working conditions". It has demanded that Uber and Lyft turn over lists of drivers who meet the criteria set by the Seattle law, that they have driven at least 52 times in a three-month period in the proceeding year before October 19, 2016. Uber immediately sued to halt the plan from moving forward but was stymied by a Washington state judge who ruled in favor of the city late last month.

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