Sen. Warren calls on food delivery apps to reclassify workers, increase pay during pandemic
As restaurants shut down their dining rooms and Americans hunker down in their homes to stop the spread of coronavirus, many businesses and consumers are turning to delivery services for their food and groceries. Sen. Elizabeth Warren (D-MA) is now urging those companies to classify their workers as employees rather than independent contractors — something gig economy companies have fought for years.
On Wednesday, Warren wrote letters to the CEOs of Uber Eats, DoorDash, GrubHub and Instacart calling on them to make the change, in order to provide workers with “basic rights and protections.”
“Because these workers perform essential delivery work and are critical to serving customers who cannot leave home during the pandemic, you have a responsibility to protect their health and the public’s health,” said Warren in the letters. "Delivery workers are experiencing serious health and economic vulnerabilities as a result of their jobs, and your company is failing to provide appropriate and necessary protections," she added.
Warren called on each company to guarantee workers at least 14 days of paid sick leave, provide free protective gear like gloves, masks and cleaning supplies, allow employees to request “no contact delivery,” and immediately share wage data with state agencies to make sure workers who lose their jobs can access unemployment insurance. She also urged the companies to pay workers a guaranteed minimum wage, with additional pay for work during the outbreak.
"The coronavirus pandemic has illustrated how much your company is completely reliant on these workers to provide essential services to the public. In this public health emergency, it is more important than ever to fairly compensate these workers and provide the health and safety protections they deserve,” said Warren.
On Monday Instacart workers staged a walkout over safety concerns — demanding hazard pay, an extra $5 an order and an extension of paid sick leave. Warren cited the walkout in her letters.
Instacart told Yahoo Finance it has introduced a new sick pay policy for part-time employees and is giving independent contractors and part-time employees up to 14 days of pay if they’ve been diagnosed with COVID-19 or if they are placed in mandatory quarantine. Warren wants the companies to provide sick leave to workers if they do not have a formal diagnosis or if they need to care for a family member.
Instacart also said it has put new safety measures in place and its shoppers are making more money. According to the company, shoppers have seen a 40% increase in earnings month-over-month, due to increased demand and a COVID-19 bonus.
“Our team has an unwavering commitment to the health and safety of shoppers and will continue to support them as this situation evolves. We welcome the conversation with Senator Warren and look forward to working with her and others to further serve this important community,” the company said in a statement.
Flexibility vs. protection
As the gig economy has grown, companies have faced mounting pressure to give workers more protections and benefits by classifying them as employees. The pandemic has put the debate in the spotlight once again.
"The coronavirus pandemic has illustrated how much your company is completely reliant on these workers to provide essential services to the public. In this public health emergency, it is more important than ever to fairly compensate these workers and provide the health and safety protections they deserve,” said Warren.
In a statement to Yahoo Finance, an Uber spokesperson said current laws present a “forced choice between flexibility and protection.”
“We believe our laws should protect all workers, not just one type of work—and rather than restricting independent work, we should strengthen the protections and benefits afforded to it. That’s why we called on the Administration and Congress to pass historic new protections for independent workers, and why we continue to advocate for updated laws that permit companies like ours to provide new benefits,” said the Uber spokesperson.
DoorDash also makes the case that classifying workers as contractors gives its “dashers” flexibility.
“Dashers come to our platform for different reasons -- for the vast majority, it’s a source of supplemental income, and Dashers deliver on our platform for an average of 3 hours per week. We look forward to working with Senator Warren and other elected officials to continue to protect all workers in a way that meets their needs and serves their interests,” said a DoorDash spokesperson.
The company argues the platform presents an opportunity for people to make money if they’ve lost their job during the outbreak — and it’s taking steps to protect its workforce. DoorDash made no-contact deliveries the default, offered sanitizer, gloves and wipes to workers and provided two weeks of earnings to eligible workers affected by COVID-19.
Uber says it is working to provide drivers with disinfectants, but supplies are limited. It’s working with manufacturers to get additional supplies and will distribute to drivers in cities with the greatest needs. A spokesperson said the company would respond to Warren’s letter directly.
Warren acknowledged DoorDash and Uber’s new leave policies, but said “workers report that requests to access this leave are being denied.”
GrubHub says it’s giving two weeks of sick pay to drivers affected by the virus, providing free access to protective gear and offering contact-free delivery.
“Americans in every corner of the country – from homebound seniors to overwhelmed parents – count on our delivery partners to access basic meals and we are doing everything we can to help them stay safe and do their jobs,” said a GrubHub spokesperson.
Jessica Smith is a reporter for Yahoo Finance based in Washington, D.C. Follow her on Twitter at @JessicaASmith8.
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