Dive Brief:
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The gig economy is pushing lawmakers in Massachusetts to balance new, emerging employer models (Uber, Lyft etc.) with older, more established, but competing industries such as traditional taxi cab companies, the Boston Herald reports.
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Looking to please both sides, last week the Massachusetts Senate passed a bill with dual purposes — regulating and encouraging ride-hailing services like Uber and Lyft.
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According to the Herald, the new law means criminal background checks and insurance policies of at least $1 million for drivers. Plus, on-demand ride companies must provide accurate fare estimates, not increase fares during emergencies, and accommodates special needs riders.
Dive Insight:
Democratic Senate President Stan Rosenberg said the bill "strikes a balance between allowing an innovative business the ability to thrive while also implementing common sense regulations that protect public safety and consumers."
On the other hand, U.S. Sen. Elizabeth Warren, a Democrat, while not opposed to the greater choice and flexibility of companies such as Uber and Lyft, has been outspoken about the need to ensure those workers have the same traditional benefits of non-gig workers, mainly paid vacation, health coverage, retirement plans, workers compensation and the option to unionize.
"In a healthy economy, disruption is inevitable. But disruption means it's time to adapt to changing circumstances," Warren told the Herald.