human capital: amazon and czi face labor disputes as biden promises gig workers better protections

Welcome back to Human Capital. This week’s edition of HC covers recent labor developments at Amazon and the Chan Zuckerberg Initiative, prospective changes for gig workers under President-Elect Joe Biden, a new primary care network designed for Black people and people of color, and further details. Additionally, key insights regarding DEI and labor practices have been extracted from DoorDash’s S-1 filing.
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Former Amazon employee initiates legal action alleging insufficient PPE during pandemic
Christian Smalls, a previous employee of an Amazon warehouse, has initiated a lawsuit against the company, asserting a failure to supply personal protective equipment to Black and Latinx workers throughout the COVID-19 pandemic.
The class action lawsuit claims Amazon did not adequately safeguard its workforce and violated aspects of New York City’s human rights laws, alongside relevant federal and state regulations.
“I was a dedicated employee who consistently gave my best to Amazon, only to be abruptly terminated and discarded as if unimportant after I requested that Amazon prioritize the safety of its employees by providing essential protective gear and maintaining a sanitized work environment,” Smalls stated. “My sole intention was for Amazon to offer basic protective equipment and ensure workplace sanitation.”
Center for Black Innovation receives $2.1 million in funding
The Knight Foundation, Surdna Foundation and Comcast NBCUniversal have collectively invested $2.1 million into the Center for Black Innovation. This funding aims to bolster Black entrepreneurs and expand the representation of Black founders in Miami and across the United States. The resources will be allocated to investor training, facilitating connections between founders and investors, and providing educational programs for founders, among other initiatives.
Chan Zuckerberg Initiative responds to racial discrimination allegations
Ray Holgado, a former employee of the Chan Zuckerberg Initiative, has recently submitted a racial discrimination complaint to the California Department of Fair Employment and Housing. Holgado, who identifies as Black, was employed at CZI from September 2018 to August 2020.“Despite publicly advocating for social justice, CZI does not foster a supportive environment for Black employees,” Holgado’s complaint alleges. “Black employees experience lower pay, lack of recognition, limited opportunities for advancement, and marginalization. Black employees who seek to progress within the organization are often discouraged and characterized as overly assertive, while non-Black employees are encouraged and supported. When Black employees raise these concerns with CZI leadership, their feedback is often met with defensiveness and a failure to address the core issues. CZI has demonstrably failed to ‘build a more inclusive, just, and healthy future’ for its Black employees.”
In a communication to TechCrunch, CZI refuted these claims.
“We take all allegations of discrimination very seriously and will do so in this instance. However, the specific allegations made by this former employee were previously raised internally, thoroughly investigated, and found to be without merit,” a spokesperson stated. “The Chan Zuckerberg Initiative is dedicated to fairness, accessibility, and advancement for all members of the CZI team. We have a zero-tolerance policy for discrimination of any kind.”
Key DEI and labor insights from DoorDash’s S-1 filing
Food delivery service DoorDash has submitted its initial public offering paperwork. Given the document’s length, we’ve highlighted the sections pertaining to DEI and labor.
DoorDash expresses a commitment to diversity and inclusion within its S-1 filing, despite not having publicly released any diversity data
DoorDash also highlights the fact that its workforce of 3,279 employees remains un-unionized:
DoorDash, mirroring other companies in the gig economy, is preparing to advocate for legislation similar to Proposition 22 in additional states:
Spora Health introduces primary care network for Black individuals and POC
Spora Health has launched a primary care provider network, modeled after One Medical, specifically for Black people and people of color.“A truly equitable healthcare system has never existed in the United States, particularly for Black communities, and that is what we are striving to achieve,” Spora Health founder and CEO Dan Miller explained to TechCrunch.
Spora Health, which recently secured $1.2 million in seed funding, provides primary care services to Black people and people of color. The initial approach is telemedicine-based, with plans to establish physical locations in the future.
Lyft comments on the passage of Prop 22
“Looking ahead, the approval of Proposition 22 in California represents a significant accomplishment and a substantial win for drivers, our industry, and the broader Lyft community,” Lyft President John Zimmer stated in Lyft’s recent earnings report. “The success of the campaign stemmed from its reflection of drivers’ desires and priorities. Over 120,000 drivers actively participated in the effort to pass Prop 22 – they volunteered, shared their experiences, and mobilized support. Voters recognized this and demonstrated their solidarity. We anticipate continuing discussions with policymakers nationwide.”
Similar to Uber, Lyft is also exploring the possibility of enacting comparable legislation in other states. During the earnings call, Lyft CEO Logan Green indicated that Prop 22 serves as a potential framework for other states.
Uber and Lyft seek rehearing on case upholding preliminary injunction
Uber and Lyft have both submitted petitions for rehearings in the case initiated by California Attorney General Xavier Becerra. Last month, an appeals court affirmed a lower court’s decision that would require Uber and Lyft to classify their drivers as employees. However, with the passage of Proposition 22, Uber and Lyft are now requesting the court to reassess the appropriateness of the injunction.
Despite the passage of Proposition 22, Uber and Lyft are still likely to encounter legal challenges regarding worker classification in California, as the new proposition cannot be applied retroactively. According to Bloomberg Law, these legal avenues will be limited, and any damages awarded will be capped.
Human Rights Watch and Amnesty International respond to Prop 22
In a joint statement, Human Rights Watch and Amnesty International characterized Prop 22 as a “devastating setback to the rights” of gig workers.
Here’s an excerpt: