The difference arises because pandemic assistance is based on income net of expenses like gas and maintenance, whereas unemployment benefits are based on gross earnings — or about $26,000 versus about $55,500 for Mr. Ouattara in 2019. Other drivers face similar disparities, according to the complaint.
Mr. Ouattara said he received a notice from the state this month indicating it had no record of earnings for him from Uber or Lyft. After he sent the state his documentation, he said, it urged him to apply for pandemic assistance. He did so, but continues to pursue traditional unemployment benefits as well. A second plaintiff in the case received a notice last week saying he was approved for pandemic assistance, but he continues to press for conventional unemployment benefits.
Other drivers who believe they are employees have sought traditional unemployment benefits rather than pandemic assistance as well, but have encountered problems similar to those of Mr. Ouattara and his fellow plaintiffs.
Carole Vigne, a staff attorney for the nonprofit Legal Aid at Work, said she had represented Uber and Lyft drivers during the pandemic who received traditional unemployment benefits in California in about six weeks. But she said that some of her clients there were still waiting for benefits they applied for more than two months ago, and that some had been routed to the pandemic assistance program with no explanation, despite intending to apply for traditional benefits.
Crystal Page, a spokeswoman for California’s labor agency, said in an email, “There are a number of different scenarios that apply to ALL benefit claims which could determine how quickly a claim can get processed and paid if the individual is eligible.”
The New York lawsuit, brought with the help of the nonprofit group Legal Services NYC, cites two state decisions that found drivers eligible for unemployment benefits. The first was a 2018 ruling of the state’s unemployment insurance appeal board, the final authority on eligibility questions in the executive branch, which found that three Uber drivers and all “similarly situated” drivers were eligible for benefits.
The second was a ruling involving Postmates, an app-based delivery service, which found the company’s workers to be employees for purposes of unemployment benefits. The ruling did not apply to Uber and Lyft directly, but strongly suggested employee status for their drivers given the similarity of their business models to Postmates’.
Article source: https://www.nytimes.com/2020/05/26/business/economy/uber-drivers-unemployment-benefits.html
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