Conclusion

We must ensure that TNCs are making required contributions to sustain worker benefits and protections that maintain a level playing field across transportation industries.

Overview

If TNCs are not classifying their drivers correctly, using the best available data, this report conservatively estimates that TNCs have failed to contribute approximately $266.4 million into workers’ compensation, UI, and PFML for the 2013–2023 period. This includes $47.1 million for 2023 alone.⁴³ Estimated losses in benefit contributions align with third-party research in other states, as well as with Uber’s own internal assessment.⁴⁴

We must ensure that TNCs are making required contributions to sustain worker benefits and protections that maintain a level playing field across transportation industries. This analysis underscores the need for greater oversight and data reporting requirements for TNCs operating in Massachusetts. We encourage the State Legislature and Administration to enact measures enforcing full transparency of driver earnings, hours worked, and other vital employment statistics.

43.      Collateral financial impact arising from workers accessing state emergency assistance programs such as MassHealth, SNAP (food), or RAFT (housing) rather than worker benefit programs are difficult to quantify due to data limitations, and are beyond the scope of this report.

44.      In a 2020 editorial, Uber’s CEO stated that a driver in Colorado averaging over 35 hours per week would have accrued approximately $1,350 in benefit fund contributions in 2019, if classified as an employee.[2] Assuming 50 workweeks per year, Uber essentially admitted owing payouts of $0.77 per hour.[2] Taking into account the differential between 2019 and 2023 dollars, the CEO’s numbers are relatively close to the estimations of the present report, which approximates the average Massachusetts TNC driver’s work schedule at 14.9 hours per week. This activity of 14.9 hours per week would result in lost payments amounting to $618.77 per year per driver in 2023, or $0.83 per hour. In fact, adjusting for inflation, $0.77 in 2019 represents the value of $0.92 in 2023. Consequently, our estimate of $0.83 per hour is approximately 10% below the Uber CEO’s own estimate when adjusted for inflation Federal Reserve Bank of Minneapolis. Inflation Calculator. Available at https://www.minneapolisfed.org/about-us/monetary-policy/inlation-calculator.

Date published:	April 30, 2024