PRO Act Could Redefine Labor Laws for Gig Workers Nationwide: Rideshare Drivers React

[Editor’s note: Quotes are lightly edited for clarity]

Our latest episode on The Rideshare Guy! Take a listen to my latest podcast episode with Tobenna Arodiogbu about the trucking industry and how it’s evolving, and how CloudTrucks is changing the way modern-day truckers interact with the industry. 

The Employee Retention Credit has been extended, improved and increased for 2021! You can earn a credit of up to $7,000 for Q1 and Q2, even if you took unemployment (less than 4 weeks in one quarter). See if you qualify for the ERC here.

PRO Act Could Redefine Labor Laws for Gig Workers Nationwide

Labor laws have been the hot topic among gig workers and the gig economy as of late with the passing of AB5 in California and then the subsequent passing of Prop 22, also in California. Now, national labor laws might be under scrutiny as the PRO Act bill makes its way through Congress.

The Protecting the Right to Organize Act was passed by Congress in 2020, but did not make it through the Senate. On February 4, 2021, House and Senate Democrats re-introduced the PRO Act for 2021. The process is still early - those in the business community don’t believe it will become law in 2021 - but if it is passed, it would fundamentally change the way independent contractors, and the businesses that employ them, work. 

Here’s what readers are saying:

Reader opinion on this is mixed! According to one driver, the PRO Act might not be a bad thing if drivers are paid better overall:

“Is flexibility more important is income equality/benefits more important? I would rather have fewer people working for a company full time making a decent income to support a family rather than a company having unlimited supply making limited income…”

Another driver, Tom, echoes the sentiment of many in the independent worker economy:

“I believe there is a third class of worker in Europe… it has most of all the protections of an employee - minimum wage, workers comp, unemployment - but most of the freedoms of the independent contractor. Our laws need to change with the times.”

Chime in on the discussion here.

Lyft announces RATE CUT for select drivers!

Lyft recently announced rate cuts throughout the country on drivers who had been ‘grandfathered’ in at a higher rate than newer drivers. This rate cut brings long-term/veteran drivers to the same level as newer drivers, who joined at a lower pay rate. 

It should be clear how most drivers feel about this: absolutely no recognition that drivers who have been driving for a while have more experience, and therefore should be paid slightly higher, than brand new drivers who may not even choose to stay as drivers for more than a few months. 

This could certainly be a way for Lyft to better balance their books. Lyft does not have the benefit of its own delivery service, like Uber Eats, which has bolstered Uber’s earnings during the pandemic. However, considering this did not change many drivers’ opinions on the change. 

Here’s what readers are saying:

One driver says this proves we need more competition among rideshare companies, not less:

“We may have a shortage of drivers,  so lets decrease their pay. How does that make great business sense? Oh wait we need to be profitable, so we can take it from the drivers again and again. This is why there needs to me more rideshare companies, with more competition the better possibilities for drivers.”

Another driver pointed out that in other industries, long term workers are rewarded for their experience:

“Philadelphia almost 8000rides 5yrs+ moving onto bigger and better things. In the normal world you get raises for loyalty and longevity…”

Chime in on the discussion here.

Here’s How Drivers Can Claim $7,000 With The Employee Retention Credit

The Employee Retention Credit (ERC) has been extended, improved, and increased for 2021. This year, gig workers can earn a credit of $7,000 for Quarters 1 and 2 of 2021. Additionally, gig workers may even be able to claim it retroactively for 2020 if they didn’t make the cut-off for last year. That’s $19,000 in potential credits for eligible gig workers.

Here’s what readers are saying:

As with most new tax rules or credits, drivers were initially confused - and skeptical - about the ERC. One of the most frequently asked questions we received: “Do I need to have kids to qualify?” The answer is “No!” You may qualify for more if you have children, but it’s not a requirement. 

Chime in on the discussion here.

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