Slashdot Mirror


The Uber Economy Needs a New Category of Worker

An anonymous reader writes: Uber headlines a new group of companies building out the so-called "sharing economy," in which people can easily hop in and out of employment modes. Somebody can suddenly start hiring out his driving services to others, taking breaks and setting hours as he prefers, and then just as quickly stop participating forever. An article at NY Magazine says we need to define a new class of worker to fit Uber drivers and similar at-will employees. "According to American employment law, though, our driver must be one or the other, a 1099 contractor or a W2 employee. And the gulf between the two in terms of mandated government protections and benefits is as wide as the line between them is blurry. As such, thousands of on-demand-economy employees and scads of lawyers are at war in court to determine what camp our average driver should fall into. ... It might be time for a new standard that splits the difference between the two — a 'dependent contractor,' as some labor experts call it — that would be better for businesses, consumers, and all those workers themselves."

273 comments

  1. dependent contractors by Anonymous Coward · · Score: 1

    Why is a third category of worker needed? What are the benefits and down sides? Is this going to be exploited by walmart the way they give their workers 34 hours per week to avoid giving them benefits?

    1. Re:dependent contractors by cayenne8 · · Score: 5, Informative

      Why is a third category of worker needed? What are the benefits and down sides? Is this going to be exploited by walmart the way they give their workers 34 hours per week to avoid giving them benefits?

      I agree...why a 3rd category??

      They are clearly doing contracting work, plain and simple...and a model of work I prefer!!!

      I would, however, encourage them to incorporate themselves, which has a number of benefits.

      If incorporated the relationship is clearly corp-to-corp which keeps the govt from fscking up the relationship trying to insist you should be a W2 employee.

      Also, if you don't mind a little extra paperwork, make yourself a S-corp. This way, you only have to pay SS and medicare (the employment taxes) on a portion of your billing. For example, if you bill $100K. You pay yourself a W2 salary from your company that is reasonable, say maybe $30K. Now, you only have to pay SS/Medicare (employee and employer parts) on that $30K. the remaining $70K you only have to pay normal federal (and state if you live in a state tax state) after you write off all your expenses.

      This savings can really add up.

      Also, most of the insurance policies out today after obamacare came out, will qualify for high deductible policies, which will allow you to open a HSA (Health Savings Account) into which you can sock up to about $3K pre-tax for your normal routine medical expenses (co-pays, meds, etc). And, you get to write off a LOT of expenses.

      Sure it is a bit more paperwork, and you have to be an adult and learn how to manage money, save for tax payments, etc. But I find it is a MUCH better way to do things than the usual W2 set up...where you have to "earn vacation hours" (God I hated this), you work when you want to and are off when you want to....and if you do things right, you can not only have this independence, but you can also save a bit more of your hard earned money from Uncle Sam.

      --
      Light travels faster than sound. This is why some people appear bright until you hear them speak.........
    2. Re: dependent contractors by Anonymous Coward · · Score: 1

      Exaclty. They don't need a new category of worker, they need a business model that isn't exploitative, userous, and illegal. The 'sharing economy' is the biggest joke yet played on us on the 21st century, these companies' levels of greed and disdain for people makes Wall Street look like a charity by comparison, and their double speak has been crafted to an artform at this point.

    3. Re:dependent contractors by BVis · · Score: 1

      But I find it is a MUCH better way to do things than the usual W2 set up...where you have to "earn vacation hours" (God I hated this), you work when you want to and are off when you want to..

      I don't see this as all that different. Either way you get punished for taking vacation time. If you're a W-2 employee and earn vacation time, your employer will punish you for using it. If you're an independent contractor, you don't get paid for the time you take off.

      --
      Never underestimate the power of stupid people in large groups.
    4. Re:dependent contractors by Anonymous Coward · · Score: 2, Informative

      and you have to be an adult and

      And a lawyer and an accountant and an accounts manager and a salesperson and a...

      The reason I'm an employee is so that I can do what I enjoy doing and let some other suit deal with giving people handjobs under the table or swing at each other's balls. Yeah, I know I'm not "in charge of my destiny" or whatever, but I can focus on developing the abilities that actually make me useful for something other than brown-nosing.

    5. Re:dependent contractors by Anonymous Coward · · Score: 0

      They are clearly doing contracting work, plain and simple

      Wait a minute. Back the truck up. If it was clear, there wouldn't be all the lawsuits about it. It is, in fact, far from clear and it looks like Uber may be over that "blurry line" in some cases and may have to either back off some or treat them as employees. We recently saw similar suits against Fed-Ex where it turns out - guess what - they were employees. Wasn't it in the news just the other day about similar action around Handy? This is far from cut and dried. Too many companies are trying to exploit the hell out of people by calling them contractors. It will be interesting to see how this all shakes out.

    6. Re:dependent contractors by Anonymous Coward · · Score: 1

      According to long standing federal guidelines, all these workers are independent contractors = "provide own equipment, set own hours". It is only because of the taxi medallion owners that harangued elected officials have they been fighting back. Forcing them to be "employees" was just one of their method of attacks.

      Don't use Uber,Lyft,AirBnB, etc. if you don't agree with their methods, don't work for them if you don't agree. simple. only those that agree on both sides of the transaction will be involved. No one is being required to take Uber instead of a taxi. I have never used them, I will probably never use them, but just let people decide on their own.

    7. Re: dependent contractors by Anonymous Coward · · Score: 2, Insightful

      In California it was ruled that uber drivers are employees not contractor so their trying to find a way to not pay employee benefits

    8. Re:dependent contractors by beelsebob · · Score: 4, Insightful

      Because usually these people only have one person that they sell their services to, and that makes them employees, not contractors. Uber doesn't like treating them as employees, so it wants another box to put them in, and deny them the benefits of being an employee.

    9. Re:dependent contractors by beelsebob · · Score: 3

      If you're getting punished for using your contractually guaranteed benefits, then you need to find a better employer and/or a lawyer.

    10. Re: dependent contractors by Anonymous Coward · · Score: 0

      Here is the simple way to look at it. If they are 100% contractors for Uber, then they are employees. Regardless of W2/1099.

    11. Re: dependent contractors by Anonymous Coward · · Score: 0

      Maybe it is time to re-think employee benefits. Companies did not offer health insurance until the stupid Nixon/Carter wage and price controls.

    12. Re: dependent contractors by Type44Q · · Score: 1

      Why does everybody keep repeating this? That ruling applied to *one individual*

    13. Re:dependent contractors by pla · · Score: 1

      I agree...why a 3rd category??

      Because a W2 employee involves a lot more overhead for the employer than a 1099; but in this case, we have people who arguably don't qualify as 1099s, but don't have the "stickiness" of a W2 employee that would normally make it worth the extra trouble to classify them as such.

      A 3rd category could get around this by reducing the friction to hiring a W2 - For example, one of the big hassles comes from withholding and payroll taxes; if an employer could just "pay" these directly to the employee (which of course would get horribly abused, but let's skip that for now), and the employee bears the responsibility of quarterly withholding and dealing with schedules C and SE, it would reduce most of that overhead. The same idea applies to insurance, 401k, paid leave, etc - Employers don't typically balk at the raw dollars involved, but rather, the increase in organizational complexity inherent in tracking all that. Make it just one more line item, and you'll see much of the resistance vanish.

      To think of this another way, Uber has 550 non-driving employees. That takes an HR department of around 6 people, plus that amount again in additional "HR-related" support staff (accountants, lawyers, etc). Uber has 160,000 drivers. Treating those as FTEs would more than quintuple Uber's total current headcount, just for HR. And those extra people don't just draw their own salaries - They exist to correctly pay expense reports and taxes and insurance and manage depreciable assets and process liability lawsuits, all extra costs that don't exist for an army of 1099s.

    14. Re:dependent contractors by plopez · · Score: 1

      "If you're an independent contractor, you don't get paid for the time you take off"

      As a 1099 I billed for every hour I worked so that I could afford to give myself a vacation. Any employee working extra hours without extra pay is a sucker.

      The only reason I stopped freelancing is I needed insurance. Though now with insurance exchanges it might make sense for me to become an entrepreneur again.

      --
      putting the 'B' in LGBTQ+
    15. Re:dependent contractors by plopez · · Score: 1

      "Wait a minute. Back the truck up. If it was clear, there wouldn't be all the lawsuits about it"

      Unless one party had a fancy pants lawyer who convinced them they could pull a fast one.

      --
      putting the 'B' in LGBTQ+
    16. Re:dependent contractors by BradMajors · · Score: 1

      Nonsense. Whether or not the worker is incorporated makes no change to employee / contractor relationship.

    17. Re:dependent contractors by plopez · · Score: 2

      The flip side of that is CONTROL. Employers want CONTROL but not the responsibility that comes with it. As a 1099 I could be flexible and tell companies to take a hike even if they really needed me (There are some contracts not worth the hassle of extending. They can call me when they get serious about the project). AN employee has to do the job regardless. Employers want to force people to do things their way without giving them the flexibility of picking projects and tasks and doing things their own way.

      --
      putting the 'B' in LGBTQ+
    18. Re:dependent contractors by Daemonik · · Score: 1

      Why is a third category of worker needed? What are the benefits and down sides? Is this going to be exploited by walmart the way they give their workers 34 hours per week to avoid giving them benefits?

      Of course corporations will exploit any new worker category. Just like how they exploited the role of "associate" into a meaningless mockery so they can claim a justification for unpaid overtime. It's time people started to accept that corporations are not designed to be benevolent overlords but exploitative con-artists.

      I would bet serious money this "article" is part of some astroturf campaign by Uber or the Koch brothers to put yet another chink in the laws and protections that protect us from outright corporate serfdom.

    19. Re:dependent contractors by i_ate_god · · Score: 1

      > Don't use Uber,Lyft,AirBnB, etc. if you don't agree with their methods, don't work for them if you don't agree. simple. only those that agree on both sides of the transaction will be involved. No one is being required to take Uber instead of a taxi. I have never used them, I will probably never use them, but just let people decide on their own.

      I love these American-style arguments of individualism as they are always based on the availability of choice.

      Choice never lasts which is why regulations are needed in the first place.

      --
      I'm god, but it's a bit of a drag really...
    20. Re:dependent contractors by Aaden42 · · Score: 1

      Or unless a third party was stirring the poop to ensure their own established business model remains unchallenged.

      Have you seen what it costs to get a taxi driver's license in NYC? I can't think of any reason they might want to prevent others from driving people around with a much smaller upfront investment.

    21. Re:dependent contractors by starless · · Score: 1

      Because usually these people only have one person that they sell their services to, and that makes them employees, not contractors.

      Don't some uber drivers also work for lyft as well?
      My gf was driven by a driver who told her she also worked for lyft.

    22. Re: dependent contractors by someone247356 · · Score: 2

      Ummm, no. Employers started offering health insurance in large numbers during WW II.

      https://en.wikipedia.org/wiki/Health_insurance_in_the_United_States#The_rise_of_employer-sponsored_coverage/

      --
      Just my $0.02 (Canadian, before taxes)
    23. Re:dependent contractors by Anonymous Coward · · Score: 0

      and you have to be an adult and

      And a lawyer and an accountant and an accounts manager and a salesperson and a...

      The reason I'm an employee is so that I can do what I enjoy doing and let some other suit deal with giving people handjobs under the table or swing at each other's balls. Yeah, I know I'm not "in charge of my destiny" or whatever, but I can focus on developing the abilities that actually make me useful for something other than brown-nosing.

      Same here, let someone else do the 24/7 job of being the business owner.

    24. Re:dependent contractors by cayenne8 · · Score: 1

      I don't see this as all that different. Either way you get punished for taking vacation time. If you're a W-2 employee and earn vacation time, your employer will punish you for using it. If you're an independent contractor, you don't get paid for the time you take off.

      Not at all. With contracting, you just build the sick and vacation time into the bill rate to account for how much you want to take it off all year.

      The thing I was hating about W2 working..is that you early like X hours per paycheck..and can't take more than what you have earned that year....what if you want to take a 2 full week vacation early in the year rather than later? That type thing.

      As an independent contractor, I take off when and for how long I want....taking into consideration the project and all, I mean you don't want to be an asshole about it and leave folks in the lurch....you don't get more contracts by not having common sense and some social skills.

      But you're not losing money as a contractor, you figure that into the BILL RATE when negotiating the rate. That's why some people gasp at how high the bill rate is for contractors. When you're billing $75-$120/hr...it isn't all profit, you have to pay taxes out of that, insurance, and other business expenses, and figure in enough to cover you while not working for 3-4 weeks a year for vacation and/or sick leave. That type thing.

      Part of being a contractor successfully, is understanding how much money things take and how to plan and implement your plan.

      Yes, it is a great life if you are just willing to put your "Big Boy" pants on and show some responsibility and be able to take care of yourself and your own affairs in a timely manner.

      --
      Light travels faster than sound. This is why some people appear bright until you hear them speak.........
    25. Re:dependent contractors by pnutjam · · Score: 1

      If you think American at-will employment isn't a low enough classification, I don't want to live in your world.
      There is absolutely no requirement to provide any benefits to employees in America.

    26. Re:dependent contractors by pnutjam · · Score: 1

      Yes, but that's not the way Uber wants it to be:
      http://money.cnn.com/2014/08/04/technology/uber-lyft/

    27. Re:dependent contractors by Anonymous Coward · · Score: 0

      You two are so 19th century.

      In 10 years 50% of current jobs can be done by AI/Robotics
      In 20 years, perhaps 80%

      We don't need a 3rd class of worker. we need an entirely new economic paradigm because the Labor Theory of Value is kaput.

    28. Re:dependent contractors by Straif · · Score: 1

      The number of clients you provide services to has little to do with the contractor/employee determination.

      My office has about 160 employees and at any given time about 10-20 contractors. Of all of the contractors I have worked with this was their one and only workplace during the term of their contract. Some of the contractors have been working here off and on for years but enjoy the ability to take months off between contracts so never bothered to become full employees.

      --
      Of course that's just my opinion...... you could be wrong!
    29. Re:dependent contractors by pla · · Score: 1

      There is absolutely no requirement to provide any benefits to employees in America.

      I agree with you in spirit, but as phrased, you have it factually incorrect.

      Employers must pay half of payroll taxes - 6.2% right off the top, there - on W2s. Then we have the Obamacare mandate for companies over 50 employees. And if you think your tax prep sucks, as a W2 your employer has already done most of the work for you. Your employer pays into UI for you (though an "indirect" benefit, it becomes very tangible if you get laid off). Your employer provides worker's comp insurance (which you may take as a "duh, they broke me, they should pay for it", but as an actual contractor, if you get hurt on the job, oh well). Most employers offer short and/or long term disability insurance, because it benefits them to do so. Many employers offer life insurance, because by offering it to you, they can also take it out on you. As for 401ks, no mandate, but employers get tax breaks for contributing to them.

      No argument, the US has disgustingly employer-favoring labor laws. But a W2 gets a world of benefits (yes, many optional, but mostly not) that a 1099 does not.

    30. Re:dependent contractors by knightghost · · Score: 1

      That hits on something that the "sharing economy" keeps ignoring - what happens when you can't find work? Most people fail at this model and there isn't somewhere better to go. That common failure combined with variable income means that you can't take loans. No house, no apartment, no car, no investment. Just how long are you going to live in your parent's basement? Prove that this model is economically better before changing law to create a 3rd type of worker that has the worst parts of the other 2.

    31. Re:dependent contractors by BVis · · Score: 1

      What exactly is actionable? It's not like there's going to be an entry in the employee's file saying "this person used vacation time and he sucks". There will be a general resentment from his/her managers which will tend to portray them as "not a team player" and possibly affect their reviews and thus their compensation. Incredibly hard to prove, much less litigate, since there's nothing in writing except for a shitty performance review which could be completely legitimately bad.

      --
      Never underestimate the power of stupid people in large groups.
    32. Re:dependent contractors by BVis · · Score: 1

      Most employees working extra hours without extra pay will lose their job if they don't.

      FTFY. If you are an exempt employee, and you continually refuse to work beyond 40 hours when asked (or even not asked), they WILL replace you with someone more compliant. You're "not a team player", since others in your group are most likely already doing the extra work.

      --
      Never underestimate the power of stupid people in large groups.
    33. Re:dependent contractors by BVis · · Score: 2

      I was with you until your last sentence. Now you just look like an asshole.

      --
      Never underestimate the power of stupid people in large groups.
    34. Re:dependent contractors by pnutjam · · Score: 1

      Actually, your part right, and part wrong.
      Payroll taxes are a given, but theoretically you pay them either way. The contractor has to make enough to cover them, or you can pay them and pay a little less.
      The Obamacare mandate is not in effect yet.
      UI is a social contract, it's a minimal program that allows employers to have their "at-will" employment without riots.

      The other things you mention are all employer benefits and are not required. In order to offer 401k benefits to the VP's, it has to have a certain percentage of regular workers that buy in, so it's a form of subsidy for the rich (that's aside from the cash that financiers rake in on 401k accounts).
      Disability helps retention and recruiting of top tier and VP's. It's often paid for by employees if offered at all.
      Life insurance is so they can buy some on you, as you stated.
      Workers Comp is really a big steaming dump on employees. If your covered by workers comp, you cannot sue your employer. Losing a hand can be worth anywhere between $37k and $700k, depending on your state. Contractors are much better off, they can sue and recover actual damages.

    35. Re:dependent contractors by Anonymous Coward · · Score: 0

      Technically, you're still a W2, just of your own S-Corp, instead of some else's C-Corp. Also, $30K is not a reasonable salary. You have the numbers inversed, depending on how much risk you want to take on with your taxes. If you bill $100K, maybe $70K-$80K is a reasonable salary depending on your other business goals and expenses. You shouldn't take more than $5K-$10K in S-Corp distributions on that amount I don't think (the amount you save some taxes on). YMMV

    36. Re:dependent contractors by Anonymous Coward · · Score: 0

      See the other reply - not too far off the mark, perhaps.
      The problem is, for every person who has the in demand skills and the salesmanship to freelance, there are a lot more who don't want to be bothered, and even more who in a "race to the bottom" market would end up making barely enough to afford to eat dog food. the average shop clerk should not have to renegotiate a contract every few months, should not have to juggle two or three jobs to find 40 hours a week, should not have to negotiate rates that can dip below minimum wage... if speaking English and counting money are your only assets, the world doesn't owe you luxury, but also you should not have to freeze in the dark.

      The trouble with Uber is that there is a reason why cabs are licensed and regulated. If Uber is doing criminal background checks, how do they know they are checking the correct name? What about driving records? What about insurance? They are offering a product - transport - with a decent risk. private insurance is void the moment the insurer discovers the vehicle was used for commercial purposes.

      If Uber wants to be the Napster of taxidom, they should remember what happened to the real Napster.

    37. Re:dependent contractors by Anonymous Coward · · Score: 0

      OTOH, what would be the result if the taxi business were totally unregulated? The expression is "race to the bottom".

      the undeniable fact that the taxi market in most cities is excessively restricted does not mean the opposite model is ideal.

    38. Re: dependent contractors by Anonymous Coward · · Score: 0

      Worked extra hours. Got 30% salary bump and confirmation that hours are not expected. Net effect is 15x the one time bonus of contractor work. Good luck with your plan

    39. Re:dependent contractors by david_thornley · · Score: 1

      The lawyer probably won't help. Finding a better employer would. I've been in the software business longer than a majority of you have been alive, and I've never had any pressure to not use vacation time.

      --
      "When you have eliminated the unacceptable, whatever is left, however improbable, must be the truthiness" - Holmes
    40. Re:dependent contractors by david_thornley · · Score: 1

      I found that, while I could definitely get more raw money as a contractor, I couldn't come out much if any ahead of being an employee, considering everything.

      --
      "When you have eliminated the unacceptable, whatever is left, however improbable, must be the truthiness" - Holmes
    41. Re:dependent contractors by plopez · · Score: 1

      They're still suckers. Find a better employer. Bail as soon as you can.

      --
      putting the 'B' in LGBTQ+
    42. Re: dependent contractors by plopez · · Score: 1

      I have worked extra hours, didn't get the pay increase and got laid off anyway. From now on if I work over time and don't get paid for it I make sure I work some shorter days to compensate. No one rides for free.

      --
      putting the 'B' in LGBTQ+
    43. Re:dependent contractors by El+Rey · · Score: 1

      IRS regs specifically mention working for only one company as an indication that you should probably not be considered a 1099. The company I used to work for offered me the option of being 1099 but the IRS guidelines clearly stated that was not appropriate so I asked to be brought on as W2. Even if the IRS wouldn't check, I don't see the point in putting myself in a position where I give them a reason to screw with me...

    44. Re: dependent contractors by Anonymous Coward · · Score: 0

      So Uber drivers get to set the rate? Or do big boys like you get to ignore the facts and spout off bullshit to show how big your boy dick is?

    45. Re:dependent contractors by cerberusss · · Score: 1

      And a lawyer and an accountant and an accounts manager and a salesperson and a...

      It's not that bad, actually. I moved from a steady job to contracting and it's not like you run a full-fledged business. I get my work through a bunch of agencies, so I don't have to do calling and selling and what have you. I just spread my resume around those, and they call and email me. There's also a local site where you can check out companies looking for a contractor. Once you have a client, it's usually a multi-month/-year, stable affair.

      I do my own bookkeeping because I happen to like it, but a friend of mine simply gives it to an accountant. Since it's only a one bill a month and a handful of invoices, the costs are quite limited.

      And I easily earn twice of what I used to earn.

      --
      8 of 13 people found this answer helpful. Did you?
    46. Re:dependent contractors by rch7 · · Score: 1

      You are asking for certain IRS audit and overturn if you paying just 30k out of 100k as salary in S corporation that is one person company. It is not reasonable, IRS would require you to prove that 30k is normal wage for the kind of work you perform, and if you actually earned 100k, it is more likely to be normal wage. 80k out of 100k may allow you to pass under radar, but not 30k. And you can write off expenses even if you are not incorporated.

    47. Re:dependent contractors by Anonymous Coward · · Score: 0

      (allow me to speak from my experienced soap box): I think that's a bad idea, trying to avoid paying social security - those benefits you pay for social security are going to be an important part of most people's retirement, probably yours. There are lots of categories of workers who for various reasons didn't pay social security (state workers, other cases), and they ended up having their other retirement plans fail and they were stuck. Also just setting aside 3k health insurance wont get you very far. A recent test cost me $1000 just after my deductible, and I have great health insurance. When you get old and have real health needs, you'll need that insurance. When you put less in, to ss, you get less out.

      When you are young you might think that is just wasted money, but the vast majority of people will not save well, they'll just spend that money that would have gone toward social security. Just like when you are young, you might say why do I need this stupid social security and medical insurance, you will need it, one day you will be older.

      All those arguments about I won't need it, it won't be there. We will need social sec for most people. It will be a huge part of their retirement.

      You might be in that small category that will fund your own retirement, but you never know if you'll have a car accident, or someone will hit you on your bike, and those important social security could be all you have to live on.

    48. Re:dependent contractors by Anonymous Coward · · Score: 0

      In my mind, "entrepreneur" means something with considerable initiative or risk. I wouldn't say independent contractors who bill by the hour get to make that claim with out some substantial outlay of financial risk (i.e. did you drop 100k to get some special piece of equipment to develop your niche market.)

      As someone who has done all three (full time employee, contractor, business owner) I certainly would only say I was an entrepreneur twice..once reasonable successfully and once a miserable failure...but whatever floats your boat.

    49. Re:dependent contractors by Anonymous Coward · · Score: 0

      They (the existing taxi drivers) should sue NYC for extortion to get their medallion costs back.

      And anyone on the waiting list should sue for anti-competition practices.

    50. Re:dependent contractors by BVis · · Score: 1

      That's like saying "well if they're jerks to you at that car dealership go somewhere else." The problem there is that they're ALL jerks. Same goes for employers. A for-profit company has a financial incentive to make their people work long hours for no extra pay. If exempt employees were eligible for overtime, you'd see that stop right quick. You'd mysteriously see workloads reduced to less-insane levels, because then they'd have to pay more.

      --
      Never underestimate the power of stupid people in large groups.
    51. Re:dependent contractors by tehcyder · · Score: 1

      If you're a W-2 employee and earn vacation time, your employer will punish you for using it.

      I think this is mainly a US problem.

      --
      To have a right to do a thing is not at all the same as to be right in doing it
    52. Re:dependent contractors by BVis · · Score: 1

      Of course it is. It's a product of the fact that American workers are not guaranteed ANY paid time off by law. No vacation, no sick time, nothing. If you have a baby, you can take 12 weeks... unpaid. And it took an act of Congress to get that.

      American employers resent the fact that in order to attract good talent, you have to offer paid time off. So, while you DO get paid time off, remember, taking it means your employer resents you that much more. Some employers are worse than others, but as someone who just got called on the carpet for working remotely too much (not even time off, just out of the office), despite a previous arrangement that allowed it, I can speak from experience that if your butt isn't in the seat 40+ hours a week, 52 weeks a year, your performance is sub-par.

      --
      Never underestimate the power of stupid people in large groups.
    53. Re:dependent contractors by Straif · · Score: 1

      The IRS has about 20 questions to help determine whether a person is an employee or contractor, working for a single company is just 1 and on it's own the answer is meaningless.

      Some of the other questions include:
      - Who supplies the tools required to perform the job.
      - Is the person paid a salary or hourly wage.
      - Who provides the required training.
      - Is the individual free to terminate the business relationship.
      - can the individual set their own work hours.
      - is the individual free to perform services for other employers.

      The answer to most of the 20 questions would clearly put an Uber driver into the category of contractor. A few of the questions could actually go both ways.

      --
      Of course that's just my opinion...... you could be wrong!
    54. Re:dependent contractors by El+Rey · · Score: 1

      RIght, but the contention was that it has no bearing at all. As you admit it is one of the questions so it obviously does have bearing. So, who are you arguing against?

    55. Re:dependent contractors by Straif · · Score: 1

      The contention was it "has little to do with" and in this case that is true. When 15-17 of the questions give answers that indicate "contractor" and 1 or 2 indicate "possible employee" and the others are indifferent then those 1 or 2 are mostly irrelevant.

      It's like applying for insurance and admitting to being overweight and a smoker. That might affect how your insurance company sees you but if you die as a passenger in a plane crash it probably won't affect their odds of paying out the claim. Other conditions make those pieces of data irrelevant to the situation.

       

      --
      Of course that's just my opinion...... you could be wrong!
  2. No, We Don't... by Anonymous Coward · · Score: 1

    The legal distinction boils down to control. If the employer can control the person, they are an employee. Otherwise, they are an independent contractor. By control, we mean the ability to direct the work. This classification works just fine for Uber. Can they control how the drivers provide their services to Uber's customers? Uber's desire is to have the driver classified as someone to whom they refer work. This is a farce.

    The article mentions that the drivers can accept or decline the work and set their own hours. So what? That's part of the "employment package" so to speak. When the driver does accept a job, they are required to conform to Uber's policies and perform the job under Uber's control. That's an employee!

    Uber is concerned about their bottom line given the recent California decision classifying one of the drivers as an employee. They will be forced to comply with a host of employment laws. To carve out another category of employee really adds nothing to the discussion and muddies the waters with regards to legal classifications that have worked very well for decades.

    1. Re:No, We Don't... by aaarrrgggh · · Score: 4, Insightful

      Agreed. A "dependent contractor" is by definition an employee. We have several people that have moonlighted for us over the years. We generally considered them 1099s as they did not generally work in our office, use our supplies, or have responsibilities other than delivering a specific product, which would place them firmly in that category.

      Reality is that more people need to be considered W2 employees because that is the easiest way to prevent abuses.

      The "gotcha" with Uber is what happens when a driver is simultaneously driving for Lyft, Uber, and the Pizza Company? Has he achieved a nexus where he is independent?

      My bias is really over the issue of exempt/non-exempt employees though. Labor laws for non-exempt employees are really hard for small businesses when you get beyond restaurant/retail and into the professional realm. (Would you like a coding session when you are in the zone broken up by a mandatory 15-minute break?)

    2. Re:No, We Don't... by bluefoxlucid · · Score: 1

      Agreed. A "dependent contractor" is by definition an employee

      No, it's not, really. It's a bullshit term made up by morons. You have C2C contractors--an employee of CockSux Corp farmed out to a desk at MonSuckto Inc--and you have independent contractors. If you hire on directly, you have an employee. CockSux Corp may supply an independent contractor or an employee to fulfill their C2C contract obligation.

      The term "Dependent Contractor" stems from some drooling suit banging his head into his desk while looking for his chinstrap, and immediately deciding an independent contractor we want to call something else should be called a "dependent" contractor because, hey, independent, dependent, you know.... It's not really a descriptive term; it's a mangling of English with stupidity.

    3. Re:No, We Don't... by Anonymous Coward · · Score: 0

      "Would you like a coding session when you are in the zone broken up by a mandatory 15-minute break?"

      You seem to imply that others who are doing work at take their mandatory 15-minute break are not similarly distracted. There are lots of complications of that mandatory 15 minute break for retail/restaurant. In a restaurant I've got to get someone else to cover your table, while the people sitting there need to suddenly understand someone else is servicing them. In manufacturing, the line could be humming along and I now have to tear all that down and try to get it started back up again.

      I would argue that a 15 minute break is less of a distraction in the professional environment, just a few busted "zones", then it is in the area it's truly meant to help.

    4. Re:No, We Don't... by someone247356 · · Score: 1

      "The "gotcha" with Uber is what happens when a driver is simultaneously driving for Lyft, Uber, and the Pizza Company? Has he achieved a nexus where he is independent?"

      Why would that be any kind of a nexus? That's simply holding down more than one job.

      With current wages being as low as they are [and have been for quite some time] lots of people have to hold down multiple jobs just to make ends meet. I can't see why that would magically convert them from W2 employees to 1099 independent contractors.

      --
      Just my $0.02 (Canadian, before taxes)
    5. Re:No, We Don't... by pnutjam · · Score: 1

      Wow, your thoughtful, intelligent, and professional reply has really clarified this issue for me.

      Your clearly wrong.

  3. No, these companies need to follow the law by H3lldr0p · · Score: 5, Insightful

    Look, I get that these guys are trying to do something new. And for that I applaud them and their efforts. However until there are new laws supporting the sort of things they're trying to do they need to follow the current laws especially regarding employment.

    Just because you came up with a new way to run things doesn't mean that the rest of it like it or agree that's the way the world should work. Especially when it seems like all you're doing is trying to dodge current legal frameworks without any good reason for doing so.

    1. Re:No, these companies need to follow the law by bluefoxlucid · · Score: 2, Insightful

      Just because you came up with a new way to run things doesn't mean that the rest of it like it or agree that's the way the world should work.

      Yes, but you can fuck off, anyway. The employees like it, the customers like it, and nobody who didn't voluntarily put themselves in this situation is affected by it, save for the raw dynamics of business (i.e. some other company is capturing your market better than you, so you're losing business and they're gaining business; this is why the RIAA wants rights-enforcement jurisdiction over RIAA-independent artists, not just those who sign with one of the RIAA labels). Complaining that you don't agree with how it should work is literally the same as complaining that some people have gay sex or study Marx: it's not your business.

    2. Re:No, these companies need to follow the law by khallow · · Score: 1

      Where is this "need" you speak of? I don't "need" Uber to follow bad law.

    3. Re:No, these companies need to follow the law by fluffernutter · · Score: 1

      "The employees like it, the customers like it" By that reasoning, it should be legal to sell narcotics on the street.

      --
      Laws are rules for the court, but merely a bottom bar to hit for life. Think beyond laws in your actions always.
    4. Re:No, these companies need to follow the law by FlyHelicopters · · Score: 3, Insightful

      "The employees like it, the customers like it" By that reasoning, it should be legal to sell narcotics on the street.

      Yes, it probably should be... and I don't like that either, but our current war on drugs is stupid, expensive, and isn't remotely preventing it anyway...

    5. Re:No, these companies need to follow the law by TWX · · Score: 1

      Between blatantly violating the laws covering passenger livery and blatantly violating the laws covering employee compensation, Uber and its ilk are looking more and more like organized crime than like a lawful-evil taxi company.

      --
      Do not look into laser with remaining eye.
    6. Re:No, these companies need to follow the law by Trax3001BBS · · Score: 1

      Look, I get that these guys are trying to do something new. And for that I applaud them and their efforts. However until there are new laws supporting the sort of things they're trying to do they need to follow the current laws especially regarding employment.

      Like say threats?

      "An Uber driver left a woman a voicemail message threatening to "cut [her] neck" if she cancelled a taxi with him again."
      http://www.independent.co.uk/n...

      They have been suspended, whatever that means in Uber world.

    7. Re:No, these companies need to follow the law by bluefoxlucid · · Score: 1

      Perhaps it should! What matter of reasoning is it that you don't like a behavior, and so others shouldn't be allowed to engage in said behavior? Before you know it, we'll live in homes we buy outright, but our neighbors will tell us what color to paint the door and what type of mailbox to install!

    8. Re:No, these companies need to follow the law by Anonymous Coward · · Score: 0

      You like it, go buy a huge plot of land and found your own city with private roads and blackjack and hookers, and set the terms for their use.

      Otherwise you're just another dull keyboard warrior who doesn't understand the concepts of rule of law and of public property, i.e. property in which Government Inc. (one citizen, one share) has a legitimate ownership interest.

    9. Re:No, these companies need to follow the law by Anonymous Coward · · Score: 0

      True. Taxi drivers would never engage in such behavior! Never! It must be Uber!!!

    10. Re:No, these companies need to follow the law by Anonymous Coward · · Score: 0

      If they're capturing my market better by breaking regulations that I have to follow, that is my business, and it's the regulator's business.

      If the employees like it, then they're employees, and they need to be treated as employees. They can't have it both ways. If they want to consolidate all taxi companies into one international service, they need to obey the law while they're doing it, otherwise it's a non-viable enterprise, market dumping, also illegal.

    11. Re:No, these companies need to follow the law by khallow · · Score: 1

      Otherwise you're just another dull keyboard warrior who doesn't understand the concepts of rule of law and of public property, i.e. property in which Government Inc. (one citizen, one share) has a legitimate ownership interest.

      This sort of attitude is one reason I favor strongly reducing the existence and extent of public property - because it removes an excuse for you to meddle.

    12. Re:No, these companies need to follow the law by stonedown · · Score: 1

      This sort of attitude is one reason I favor strongly reducing the existence and extent of public property - because it removes an excuse for you to meddle.

      Get off my land!

    13. Re:No, these companies need to follow the law by stonedown · · Score: 2

      True. Taxi drivers would never engage in such behavior! Never! It must be Uber!!!

      Taxi drivers have invested a lot more into their occupation than Uber drivers. They have a lot more to lose.

    14. Re:No, these companies need to follow the law by stonedown · · Score: 1

      The employees like it, the customers like it, and nobody who didn't voluntarily put themselves in this situation is affected by it, save for the raw dynamics of business (i.e. some other company is capturing your market better than you, so you're losing business and they're gaining business; this is why the RIAA wants rights-enforcement jurisdiction over RIAA-independent artists, not just those who sign with one of the RIAA labels). Complaining that you don't agree with how it should work is literally the same as complaining that some people have gay sex or study Marx: it's not your business.

      At least some employees don't like it, and they are suing Uber.

      http://www.cnbc.com/2015/07/10...

    15. Re:No, these companies need to follow the law by XxtraLarGe · · Score: 1

      "The employees like it, the customers like it" By that reasoning, it should be legal to sell narcotics on the street.

      Yes, it should. But more likely, if it was legal, it would be sold in stores.

      --
      Taking guns away from the 99% gives the 1% 100% of the power.
    16. Re:No, these companies need to follow the law by Anonymous Coward · · Score: 0

      Actually,. that already happens... I don't know about your city/neighborhood, but try to get a permit to paint your house bright pink in a neighborhood with "sober" houses and let me know how that goes.

    17. Re:No, these companies need to follow the law by blue9steel · · Score: 1

      It should be legal to sell narcotics. Customers should be required to pass an educational course and get a certification proving they understand the effects of the narcotic they wish to purchase. Sellers should be required to check certificates. Independent auditors should verify sellers are complying, with sellers required to pay for the audits. Government should oversee the auditors. Other than that the government should get out of the way.

    18. Re:No, these companies need to follow the law by lexman098 · · Score: 1

      Until a fancy new upstart creates a "narcotics sharing" app that bypasses all the certificates etc.

    19. Re:No, these companies need to follow the law by lexman098 · · Score: 1

      It's not just the cab companies themselves that take the hit. A consumer who wants to use one of the now-defunct cab companies because they had a bad experience with uber and actually want the government protection will soon have fewer options.

    20. Re:No, these companies need to follow the law by blue9steel · · Score: 1

      People who want to get narcotics illegally already do so. We can't even stop prisoners in maximum security facilities from getting drugs. What this change would do is take the money out of the process for the gangs and drug cartels. It's a win for individual liberty, it's a win for reducing crime and it's a win for increasing tax revenues.

    21. Re:No, these companies need to follow the law by Anonymous Coward · · Score: 0

      Where is this "need" you speak of? I don't "need" Uber to follow bad law.

      You're right. We don't "need" Uber to follow bad law. You don't need Uber to follow good laws. You don't need to follow any laws!

      And at the same time, government doesn't "need" to respect your rights! Well, they figured that out and have been doing that long before you did. It's about time you caught up.

    22. Re:No, these companies need to follow the law by CrimsonAvenger · · Score: 1

      "The employees like it, the customers like it" By that reasoning, it should be legal to sell narcotics on the street.

      Yes, it should. But more likely, if it was legal, it would be sold in stores.

      Drug stores, probably.

      Note that back in the late Nineteenth and early Twentieth Centuries, some of what are now illicit drugs were, in fact, sold over the counter in drug stores.

      --

      "I do not agree with what you say, but I will defend to the death your right to say it"
    23. Re:No, these companies need to follow the law by mschwanke97402 · · Score: 1

      "Especially when it seems like all you're doing is trying to dodge current legal frameworks without any good reason for doing so." There is a good reason. Money. Nothing new here.

    24. Re:No, these companies need to follow the law by Anonymous Coward · · Score: 0

      dodge current legal frameworks

      uber's entire business model in four words.

      ___

      uber itself in one captcha: sinister

      for you uber fucktard fanbois.. it's definition 2 here that applies. i shouldn't have to spell it out, but, you know.. uber fanbois are not the most brilliant minds the earth has ever seen.

    25. Re:No, these companies need to follow the law by Anonymous Coward · · Score: 0

      Obviously there has to be a balance, but people left to their own devices without restrictions will just destroy themselves and the society they are part of.

    26. Re:No, these companies need to follow the law by rtb61 · · Score: 1

      If it is not 'OUR LAND' why should we defend it or you? Psychopaths and narcissists routinely seek to exploit people by any and all means possible. The obvious one paying for less or even nothing for services than they charge at maximum prices or even false charges to end users. It is 'ALL' public property, we just allow 'LIMITED' private control under specific laws and regulations.

      Perhaps the creation of restricted access and especially restricted egress (people and technology, you enter the zone naked with nothing) 'Public Wild Human Zones', where individuals could be allowed to run wild or even by exiled to those zones, would suit libertarians. Humans who want to express their animal side could be more readily handled by being able to destroy themselves and each other in those zones. Perhaps you belong in one? We could record the chaos, it would make for interesting analytical viewing for some and raw entertainment for others, especially those in turn destined for exile to the wild human zones.

      Certainly better than execution or even life imprisonment. Just let them express their true nature upon themselves and each other, for good or ill.

      --
      Chaos - everything, everywhere, everywhen
    27. Re:No, these companies need to follow the law by Pepebuho · · Score: 1

      The employees like it, the customers like it, and nobody who didn't voluntarily put themselves in this situation is affected by it

      Let me laugh at this assertion. The employees will continue to like it until it bites them in the ass. There is a reason why the whole employee rights framework was created, and that is to protect employees from predator companies. Those companies are Privatizing profits, but Socializing their expenses. If an Uber driver, for example, gets in a crash, it is the driver's own insurance that has to bail it out, or the Public Health services. Uber is let go scot free even though the driver lost his health while performing Uber's business. Uber and similar companies just see you like a toy, now they need you, now the don't and f*ck you.It is raw predatory capitalism at its worse.

    28. Re:No, these companies need to follow the law by khallow · · Score: 1

      Sounds to me like the pot calling the kettle black. If you're not going to defend land that is owned by your friends and neighbors, then you aren't going to defend public land either.

      And of course, why should people you don't like be the ones cast out into the wilderness? That sounds more like psychopathic reasoning to me than your empty accusations about libertarians. I suggest here that maybe you don't want to be the living example of why libertarian belief systems exist in the first place. Just because someone has slightly different beliefs than you is no reason to exile or ostracize them. After all, it might be your turn next to be cast out when you don't fit in with the powers that be.

    29. Re:No, these companies need to follow the law by khallow · · Score: 1

      Obviously there has to be a balance, but people left to their own devices without restrictions will just destroy themselves and the society they are part of.

      The point here is that we are far beyond what is needed for a balance. And the US War on Drugs is an example of one way that we can destroy ourselves and our society while thinking we're doing the opposite.

    30. Re:No, these companies need to follow the law by Anonymous Coward · · Score: 0

      Go read grapes of wrath:
      Monday: "come work - we will pay you $.75 per day"
      Tuesday "$0.75? Today we pay $0.50 per day"
      Wednesday: "you want $0.50? I can find a dozen of you who will work for $0.35"

      and so on. This creates a race to the bottom for everyone, and we all wind up with less because of short term goals.

      Should employees be able to give up access to workers comp? What about a minimum wage? I can see it now: "OSHA regulations are crap....they are expensive and reduce my ability to hire new workers. Lets get rid of those regs, and I can hire some people. Here is a list of my employees support this. Lets give them what they want and abolish these regulations"

      This is the same stuff

    31. Re:No, these companies need to follow the law by tehcyder · · Score: 1

      If society as a whole isn't allowed to have any influence whatsoever on business, then things like slavery and child prostitution would have to be legal. if you want that world, just remember there's nothing magically preventing you from being the slave or child.

      --
      To have a right to do a thing is not at all the same as to be right in doing it
    32. Re:No, these companies need to follow the law by tehcyder · · Score: 1

      Perhaps it should! What matter of reasoning is it that you don't like a behavior, and so others shouldn't be allowed to engage in said behavior? Before you know it, we'll live in homes we buy outright, but our neighbors will tell us what color to paint the door and what type of mailbox to install!

      In a civilised society, you have laws preventing people from raping and murdering, for instance, and yes these restrict your freedom.

      --
      To have a right to do a thing is not at all the same as to be right in doing it
    33. Re:No, these companies need to follow the law by tehcyder · · Score: 1

      If libertarians don't want to be constrained by laws, rules or civilised behaviour, the rest of us are entitled to protect ourselves from the consequences, just like with any other criminal.

      --
      To have a right to do a thing is not at all the same as to be right in doing it
    34. Re:No, these companies need to follow the law by bluefoxlucid · · Score: 1

      If an Uber driver, for example, gets in a crash, it is the driver's own insurance that has to bail it out,

      Except for the $1 million of insurance US Uber drivers have, and the various insurances they have in other countries. Uber has changed these claims, of course--instead of giving numbers anymore, they just say that they meet or exceed regulatory minimums for cab drivers.

      Such a tired and old myth. Next, you'll tell me Mars is going to grow larger than the moon this August.

    35. Re:No, these companies need to follow the law by bluefoxlucid · · Score: 1

      ...raping and murdering actually hurt other people...

      You know, the person who commits rape? He forcefully inflicts rape on another person. This is different from, say, buttsex. Maybe buttsex should be illegal in a civilized society, because buttsex is gross and nasty and we should arrest people for having it.

    36. Re:No, these companies need to follow the law by khallow · · Score: 1

      If libertarians don't want to be constrained by laws, rules or civilised behaviour

      Well, then we're good. Because that's not what libertarians don't want.

  4. In the past this has been working under the table by xxxJonBoyxxx · · Score: 5, Insightful

    People who do small side jobs (including myself occasionally) often aim for cash payment to avoid government reporting (especially so-called "self-employment" taxes); it's been called "working under the table" forever. Or if you do regular contract work (which I also do), you get an LLC, go the 1099 route and bury as many expenses you can against the LLC to avoid reporting much of a profit (because profit=taxes). Both routes are common and well-accepted.

    >> dependent contractor

    Please [diety], no. We just got done with this fight. If you define the terms of success and let me pick how it's done within certain standards of quality, I'm a contractor, and I'll take cash. If you ALSO want me to behave like an employee, controlling my hours, sitting through useless HR presentations, and acting like an agent of a corporation, then I'm an employee and I want the full benefit package. It's pretty black-and-white and has never really been an issue in the dozens of contracts I've been involved in.

  5. independent contractor by us7892 · · Score: 1

    Independent contractors. Plain and simple. Now, the IRS will probably need another army of folks to go after those no reporting enough of their income. Perhaps the army of IRS workers can be borrowed from the ACA group.

  6. No! by digsbo · · Score: 1, Informative

    We don't need categories. All these situations are voluntary and should be handled by contract. Stop creating regulations that make it harder for people to get a little income.

    1. Re:No! by Mr+D+from+63 · · Score: 1

      There already is a category. They call em scabs.

    2. Re:No! by Anonymous Coward · · Score: 0

      With that logic people should be able to "voluntarily" become slaves. People have sold themselves into slavery in the past and if you open the door, there's nothing stopping companies from starting to only offer contractual slav..., uh, uncategorised workers (if that's the term you prefer).

  7. " ...we need to define a new class..." by turkeydance · · Score: 1

    try an old one: Migrant worker.

    1. Re:" ...we need to define a new class..." by Anonymous Coward · · Score: 0

      try an old one: Migrant worker.

      No, no, no. This is a new class. Take all the benefits of a migrant worker, a contractor and an employee. Throw them out the window. New class of work without any protection whatsoever. Now the uber economy can get down to doing real work.

  8. A new category by Anonymous Coward · · Score: 0

    With all of the liabilities of a small business owner and none of the benefits.

    Yes, that's the category that corporate America is working to move all of us into.

  9. Nope. Uber needs to follow the law by Anonymous Coward · · Score: 0

    Easy as that.

    Until then fuck this joke of a company.

  10. Just add this prefix to any job... by Anonymous Coward · · Score: 1

    "Unlicensed"

    - taxi (ride sharing)
    - plumber (flow sharing)
    - electrician (connection sharing)
    - fireman (Jerry, you really have to stop making those 'wee-ooh wee-ooh' sounds while you drive)

    1. Re:Just add this prefix to any job... by rwa2 · · Score: 1

      "Unlicensed"

      - taxi (ride sharing)
      - plumber (flow sharing)
      - electrician (connection sharing)
      - fireman (Jerry, you really have to stop making those 'wee-ooh wee-ooh' sounds while you drive)

      oh, we have (unlicensed) AC gold here!

  11. Man-in-the-street translation by Errol+backfiring · · Score: 1

    "We need workers that have as much rights as machines, make us money, but are never in the way, and require no maintenance"

    Well, you can't have both. Either you are a non-profit organisation that facilitates people doing something for each other, or you are a for-profit employer with employees. Uber seems to think that the term "sharing economy" means that everybody "shares" their money towards Uber itself.

    --
    Nae king! Nae laird! Nae yurrupiean pressedent! We willna be fooled again!
    1. Re:Man-in-the-street translation by blue+trane · · Score: 1

      Solution: unconditional basic income. Then companies can reduce wages and hours to whatever they like; but individuals have a guaranteed minimum decent standard of living. Companies benefit by reducing costs; individuals benefit from an increase in the General Welfare, and the ability to work if and when they want, doing what they choose. Why would inflation occur? Congress should direct the Fed to finance a basic income, at zero cost to taxpayers.

    2. Re:Man-in-the-street translation by Anonymous Coward · · Score: 0

      More like:
      "We need a way to file taxes on workers that may only show up for one day... or for 30 days... or once every 30 days... because they set their own hours and those hours can be extremely squirrelly. Also, those workers usually have a second income or treat this as a side business."

      Uber drivers have far more control over their workflow than anyone on a W2. They get to decide, for themselves, exactly what their hours are, exactly how many months of the year they want to work, where to work, etc. "As much rights as machines" only shows idiotic levels of ignorance on your part.

    3. Re:Man-in-the-street translation by tmosley · · Score: 1

      No no no. You finance a UBI by removing all other forms of welfare and getting rid of the bureaucracy associated with them. This means not only getting rid of SSI and SSDI, but also food stamps, the bureau dealing with minimum wage violators, etc.

      Asking the Fed to print money to fund anything will by definition create inflation. It might take it a while to hit prices, but it would, and has. Since the Fed's inception, the purchasing power of the dollar has fallen 98%. Prior to that, it's purchasing power gyrated but rose over time.

    4. Re:Man-in-the-street translation by TwoEyedJack · · Score: 1

      The General Welfare clause does not have anything to do with giving free money to one citizen, which money was first confiscated by force from another citizen. How exactly would giving some citizens free money result in zero cost to taxpayers? That is an economic impossibility, fiat currency notwithstanding.

    5. Re:Man-in-the-street translation by david_thornley · · Score: 1

      The General Welfare clause refers to taxing and spending on the general welfare. This isn't giving free money to one particular citizen, but giving free money to a class of individuals. We have that now, in that a very large amount of Federal spending is payments to individuals who meet certain criteria.

      The idea of giving money to people at zero cost to taxpayers is ridiculous, of course.

      --
      "When you have eliminated the unacceptable, whatever is left, however improbable, must be the truthiness" - Holmes
  12. Re:In the past this has been working under the tab by Anonymous Coward · · Score: 0

    Bit of advice. Do not do too much 'under the table' unless you have a good retirement setup.

    I have known at least 3 people who did that and screwed themselves when they were 70. As you had no income your SS is crap. Try living in an efficiency apartment with 2 major medical problems and 300 bucks a month coming in.

    One guy I know has a small disc marking where his gravesite is. My dad put it there because the dudes nephew decided 4k was better spent on heroin.

  13. Uber as the Agent by willworkforbeer · · Score: 2

    The analogy is the actor's agent and the actor. "Find me some work, but I reserve the right not to take the part."

    --
    Pretending this is my office full of bitter coworkers..
    1. Re:Uber as the Agent by Anonymous Coward · · Score: 0

      this actually seems like a pretty good analogy... the drivers aren't doing occasional work on behalf of Uber, rather Uber is coordinating (potential) work that the drivers are doing on behalf of their passengers, and Uber gets a finders fee.

    2. Re:Uber as the Agent by Dr_Barnowl · · Score: 1

      And there's definitely no cliché of the starving actor at all.

    3. Re:Uber as the Agent by Anonymous Coward · · Score: 0

      SAG actors are considered employees working on fixed term contracts much like seasonal employment. Producers must provide benefits such as health insurance and they issue an annual W-2. All the entertainment oriented union contracts stipulate their members are considered employees of the production company for the length of the production.

  14. No, benefits-dodgers need DIAF in favor of FTE by sethstorm · · Score: 1

    Instead of trying to cram-down "flexibility" from above to dodge benefits laws, why not make it compete with first-tier FTE work and benefits.

    That is, an employer cannot make someone accept less than FTE as a condition of accepting work, nor be required to accept employment through a third party - for all skill levels.

    --
    Twitter supports and protects racists - by smearing their critics with the "Hate Speech" label.
    1. Re:No, benefits-dodgers need DIAF in favor of FTE by Anonymous Coward · · Score: 0

      Or, how about you fuck off with your supposed "benefits"?

    2. Re:No, benefits-dodgers need DIAF in favor of FTE by david_thornley · · Score: 1

      Because there's no way to enforce it, and it's stupid anyway. Having part-time jobs available is good for employers who don't need somebody full-time and good for people who want to spend less time at work, and think it fine to be paid less. Allowing any part-time person to demand full-time status arbitrarily is not only going to work badly, it's going to wind up with a lot of people being laid off.

      The real solution is to separate vital benefits from employment status. Health care should not depend on employment status, for example.

      --
      "When you have eliminated the unacceptable, whatever is left, however improbable, must be the truthiness" - Holmes
  15. Soft-Robot by Anonymous Coward · · Score: 0

    How long does a "Uber worker" stay "working?"

    Is it a career or is is simply a stop-gap measure to avoid homelessness and hunger?

    If Uber, Tesla and Google can find a way to remove the human from their income stream they will.

    Everyone else can wither and die.

    What is going to happen when coders are replaced by software and there is no longer a customer vase for your "next big app?"

    1. Re:Soft-Robot by tmosley · · Score: 1

      "Everyone else". I do not think it means what you think it means. Rather, they will be providing transportation to hundreds of millions or billions of people for less than the current cost of owning a car. Those who are lose the work can and will find something else, and they too will benefit from decreased cost of living.

      When coders are replaced by software, then we have reached the Singularity, and we can all sit back and relax or do whatever we want to do with the near infinite amount of resources made available by our 2,000,000,000 IQ robotic servants.

    2. Re:Soft-Robot by Dr_Barnowl · · Score: 1

      Those who are lose the work can and will find something else

      This has been true in the past, but now automation is improving faster than people can retrain and the economy can expand.

      The most common job in the USA at present? Truck driver. (well, maybe not, but still, 2.8M truck drivers - 1.5% of the entire working age population in the USA, earning an average of $51,000 apiece)

      Imagine how that one's going to go down when automated trucks are viable. Haulage firms will push HARD to get them approved to run on the road - they're already running them on private land (like in the Alberta tar sands, where the robot trucks are safer and require less maintenance and burn 25% less fuel, aside from working all day and all night and saving the company millions in wages).

      Almost overnight, unemployment will bump another 1.5% in the USA, and all that money that was going into the economy via truck driver's wages will initially go into the pockets of very rich people before prices adjust.

      What are the truck drivers going to do instead? Their life of sitting in a cab knowing the best route and which diners have the best cheese-steak sandwiches isn't going to prepare them for a life in many other professions, definitely not any that are paid as well as $51,000 ; they're certainly not going to get jobs building robot trucks (by definition - if the number of people you're employing to make a more complex and expensive machine is anywhere close to the number of people the machine replaces, then it's not economically viable - so even if someone invents an edumacatatron to fill their heads with robotics engineering, ain't gonna happen).

      They won't even get jobs as greeters in WalMart because those jobs are so hotly contested by old folks.

      AirBNB has more rooms on offer than Hilton. Hilton employs 152,000 people, AirBNB employs 800.

      The trucking industry will likely in the next decade go from having 2.8M drivers in the USA, to zero, and maybe 100,000 or so skilled robot repair mechanics.

      Amazon will go from using people as robots in it's warehouses, to just using robots.

      Even if people eventually benefit from all this, there are going to be some dark times.

    3. Re:Soft-Robot by tmosley · · Score: 1

      Vast majority used to be ag workers. Now almost none are, and everyone is better off for it.

      Automation won't wipe out truck drivers overnight. Replacing trucks is a huge capital expense. More likely it would be phased in over ten years or so. What will happen is that companies will stop hiring, and drivers will mostly age out and not be replaced, so training probably won't be an issue. In the meantime, prices for EVERYTHING that is shipped by truck, or has components shipped by truck plummet. Just like food is super cheap today (you can buy a month's worth of rice or flour for $15), manufactured goods will be super cheap tomorrow. People won't really NEED jobs. Just a gig every now and then, until they get an artificially intelligent robot with access to cloud resources, at which point they won't need anything, because the robot can do very nearly anything for next to nothing.

      And yes, you will be able to afford one, because they will be cheap, like smartphones today.

      No, the times ahead are not dark. They are so bright you have simply been blinded by them.

    4. Re:Soft-Robot by Anonymous Coward · · Score: 0

      Until reading your post I had even thought through the side-effects of there being no more humans driving trucks: there also will suddenly be a lot less money in running rest stops. I suspect that's already a pretty difficult business, but if you take out the truck drivers then they might not have enough customers to support them. Might cause a faster push toward automating restaurants to reduce labor costs.

    5. Re:Soft-Robot by tehcyder · · Score: 1

      People won't really NEED jobs. Just a gig every now and then

      People have been saying this since the 1950s. As with personal flying cars, I'll believe it when I see it.

      --
      To have a right to do a thing is not at all the same as to be right in doing it
  16. Casual or irregular worker by Richard_at_work · · Score: 1

    In the UK this would be classed as a "Casual or Irregular Worker" under the following criteria:

    Casual or irregular work

    Someone is likely to be a worker if most of these apply:

    they occasionally do work for a specific business

    the business doesn’t have to offer them work and they don’t have to accept it - they only work when they want to

    their contract with the business uses terms like ‘casual’, ‘freelance’, ‘zero hours’, ‘as required’ or something similar

    they had to agree with the business’s terms and conditions to get work - either verbally or in writing

    they are under the supervision or control of a manager or director

    they can’t send someone else to do their work

    the business deducts tax and National Insurance contributions from their wages

    the business provides materials, tools or equipment they need to do the work

    https://www.gov.uk/employment-...

    Seems to fit what Uber want out of a worker...

    The other categories identified by the UK Government are "employee", "shareholding employee", "self employed or contractor", "director" and "office holder".

  17. Disposable Workers by captaindomon · · Score: 1

    "Gee, how do we create a legal category for workers that don't have any of the hard-won protections of being employed, but also don't have the flexibility of being contractors? Something like non-skilled dependent slaves that can be hired and fired several times a day, depending on the market?"

    --
    Just because I can hook a shark from a boat, I do no offer to wrestle it in the water.
    1. Re:Disposable Workers by Anonymous Coward · · Score: 0

      hired and fired several times a day, depending on the market
          Ah, I see you have worked for a fast food restaurant in the past. (the several times a day thing is what it seems like to me)

    2. Re:Disposable Workers by tmosley · · Score: 1, Interesting

      "don't have the flexibility of being contractors?"

      What, exactly, is your malfunction? Uber requires that you take one trip once every 180 days to stay active. Not exactly suffering from a lack of flexibility there.

      Now they do get to arbitrarily set rates, which I don't like. Which is why I don't drive for them.

    3. Re:Disposable Workers by Dr_Barnowl · · Score: 1

      We've had periods where McDonald's employees were directed to clock out if there were no customers in the restaurant, because they "weren't working", so it's almost literally true.

    4. Re:Disposable Workers by pnutjam · · Score: 1

      No, Uber wouldn't like that. You have to take care of slaves...

    5. Re:Disposable Workers by Anonymous Coward · · Score: 0

      Yes and no. My wife used to manage one. I asked her about this way back when we first started going out - she said (maybe it's Canadian law, who knows?) that they would offer their employees the opportunity to go home, but never ORDERED them to. Since these were typically bored teenagers making pocket money, someone more often than not would take them up on the offer. There was no pressure or retribution for declining.

      I think that Jeb Bush was right even if he misspoke (and the alst thing America needs is another Bush) but yes, America needs to work more; the current labour laws, from tax standards to Obamacare, make it more convenient to have under 24 hours per week employees. Worse yet are arbitrary schedules where you cannot predict what you are working next month, so you cannot plan your life. A small number may benefit from casual or part-time work, but I suspect the majority would prefer the standard 5-day 40-hour week. It would be trivial to tweak tax policy to encourage full time, making part-time more expensive... I.e. if more than half your employee hours are part time, then you pay an additional tax to Social Security to help pay for all the supplementary support underpaid workers will need at retirement.

  18. We are all screwed.... by Anonymous Coward · · Score: 0

    If America keeps going down this road of temporary/flexible employment the middle class will be totally FUCKED.

    1. Re:We are all screwed.... by Anonymous Coward · · Score: 0

      If America keeps going down this road of temporary/flexible employment the middle class will be totally FUCKED.

      And this is a surprise why? Everyone (except middle classers, and even some of them) hates the middle class. They suck up wealth that the uber class (telling that the cab company in question chose that name) would rather have for its own, and they exert way too much (lessening, but still too much) influence on politics and everything else. (Remember Leona Helmsley? Classic uberclass bitch.) They serve as an example that most of the serf class is unwilling to live up to, prompting envy and hate.

      There's an undeclared war on the middle class, which is largely an abberation stemming from the industrial revolution. (There's always been a small but necessary middle class -- skilled tradespeople, mid-level military officers, etc -- but historically they've been a tiny minority rather than the majority.) Karl Marx was right about a lot but totally messed up his recommended fixes, which ignored human nature.

    2. Re:We are all screwed.... by Anonymous Coward · · Score: 0

      The middle class is dead.

      In the USA, the middle class are now the 1%ers, and everybody below that is working class.

      Unfortunately people just haven't realized that yet.

    3. Re:We are all screwed.... by tehcyder · · Score: 1

      US political discourse doen't really allow discussion of class, as it leads to awkward conversations involving Marx or Kropotkin.

      --
      To have a right to do a thing is not at all the same as to be right in doing it
  19. Re:In the past this has been working under the tab by aaarrrgggh · · Score: 1

    I would say working under the table is a little different class; it might be the same ends, getting some extra cash, but working under the table is more like "doing odd jobs." (Tax law already accommodates this; you don't need to give a W2 or 1099 to someone you pay less than $500/year.) On the "employee" side, you just have more flexibility in reporting your income; not reporting is still a violation.

  20. extra paperwork AND extra money by NotQuiteReal · · Score: 1

    In California, the annual S Corp tax MINIMUM is $800 (plus 1.5% of the net income).

    --
    This issue is a bit more complicated than you think.
    1. Re:extra paperwork AND extra money by PPH · · Score: 2

      Incorporate in a state with lower taxes and fees. Delaware comes to mind as a popular location. Or the Cayman Islands.

      --
      Have gnu, will travel.
    2. Re:extra paperwork AND extra money by Anonymous Coward · · Score: 0

      So don't live in California. It is a silly place.

      Seriously, I love visiting California, have friends there, but I doubt anyone would be willing to pay me what it would take to make me live there. We're talking seven figures. (I'm easy, but I ain't cheap.)

    3. Re: extra paperwork AND extra money by Anonymous Coward · · Score: 0

      Unfortunately, California requires all foreign corporations doing business there to register as such. The fee structure is pretty much the same.

    4. Re:extra paperwork AND extra money by plopez · · Score: 1

      But you have to weigh that against opportunity. CA is the 7th largest economy in the world.

      --
      putting the 'B' in LGBTQ+
    5. Re:extra paperwork AND extra money by BradMajors · · Score: 1

      BTW, the $800 has to be paid in advance. i.e. before the tax year starts.

    6. Re:extra paperwork AND extra money by cayenne8 · · Score: 1

      In California, the annual S Corp tax MINIMUM is $800 (plus 1.5% of the net income).

      That seems strange...as that S-Corp is a federal filing, not the state.

      You incorporate in your state (LLC or regular corp usually), then you file Subchapter S corp with the Feds, which sets you up for the savings in employment taxes like I described above.

      Is this $800 minimum in CA for any corporation or specifically aimed at the state companies that file subchapter S status with the feds for some reason?

      --
      Light travels faster than sound. This is why some people appear bright until you hear them speak.........
    7. Re:extra paperwork AND extra money by Anonymous Coward · · Score: 0

      All domestic and foreign corporations, limited liability companies, and limited partnerships doing business in California must register with the Secretary of State and pay a minimum $800 franchise tax. It makes no difference if the business entity has pass through income.

    8. Re:extra paperwork AND extra money by Hadlock · · Score: 1

      Delaware is still effective $400/yr. + contracting out a Delaware mailing address ($75/yr?). Texas (I think) does not require any taxes if your corporation's income is below $1000 but their corporation protection laws are not (nearly) as strong as Delaware or Nevada's.

      --
      moox. for a new generation.
  21. Contract work as practiced == benefits dodging by sethstorm · · Score: 1

    In more cases than not, contract work (fixed term) only exists to dodge benefits laws.

    --
    Twitter supports and protects racists - by smearing their critics with the "Hate Speech" label.
  22. In and Out by Sponge+Bath · · Score: 1

    That's what I want in a service my life depends on: here today and gone tomorrow like a fart in the wind.

  23. Marxism by any other name is still Marxism by Anonymous Coward · · Score: 0

    Capital is still screwing labor. In the 21st century the trendy name is "sharing economy" and "freelance worker".

  24. News for nerds? by CurryCamel · · Score: 1

    Stuff that matter? This is an article about some academic excercise in employment law?

    1. Re:News for nerds? by Virtucon · · Score: 1

      Did you forget who owns Slashdot now?

      --
      Harrison's Postulate - "For every action there is an equal and opposite criticism"
    2. Re:News for nerds? by tehcyder · · Score: 1

      Stuff that matter? This is an article about some academic excercise in employment law?

      You could write a story about how to make hair ribbons for kittens and it would get published here if it mentioned Uber.

      --
      To have a right to do a thing is not at all the same as to be right in doing it
  25. Not really getting it. by pushing-robot · · Score: 1

    I'm fairly certain contingent work existed before Uber.

    Why do we need to reinvent this, unless we're simply looking for a new way to reclassify full time employees as contractors?

    --
    How can I believe you when you tell me what I don't want to hear?
  26. Turking it out by adriccom · · Score: 1

    In recent scifi I think this is classed as "turk" work, a unfortunate term based on the scam of the Mechanical Turk, which Amazon also adopted for one of their service offerings.

    This term is used in at least the Metatropolis story anthologies by multiple authors (John Scalzi editing) and there's development on the theme in the plot of some stories (Detroit) so I don't want to give too many details.

    http://www.goodreads.com/book/...

    There's some parallel with "runners" from various cyberpunk scifi and gaming, too: Work for money with little formal relationship with the source of the contracts ("Mr Johnson") and a very simple professional code of ethics.

    http://tvtropes.org/pmwiki/pmw...
    http://shadowrun.wikia.com/wik...

    Doomo chums!

    --
    <script>alert("I never liked JavaScript, really; it just seemed a bad idea.");</script>
    1. Re:Turking it out by rwa2 · · Score: 1

      Yeah, I was thinking that too! The stories from Metatropolis were sort of the polar opposite of the world of Snow Crash, where the only workers left worked on big government projects to unwittingly destroy humanity as we know it (or well, at least just the CS nerds)

      I do kinda think this is the way of the future, though, whether we like it or not. Used to be that you got a job with one employer for life, and a 30-year mortgage to tie you down and help maintain "stability" in the economy.

      But to some extent, that "stability" also prevents free market forces (snicker) from arranging things optimally... things change every 5 years or so, and your skillset could probably be put to use better elsewhere, hopefully for higher pay. So now that people have increased "freedom" to jump between jobs and employers, hopefully they're doing better work and supporting the economy better than if they had just stagnated at their first employer filling a seat.

      Of course, people can and do bounce around too much... Personally I try to stick to each employer for a few years because it takes me at least 6 months to learn enough about their IT systems to reach what I'd consider full productivity enhancing and building new ones. Of course, unskilled labor needs less spinup time to reach full productivity.

      But what I anticipate will happen (heck, most businesses are halfway there already) is that we'll just all become contractors, both skilled and semi-skilled workers. We'll all become full-time employees of a labor farm which will handle training and HR and benefits, and they'll subcontract us out to whatever corporation actually has money to do projects. The corporations working on projects just want to get shit done and don't care to maintain big HR departments and take care of their people. The contracting agencies just want to maintain their labor farms and negotiate the highest rates possible for the just barely competent enough employee in their pool. Yes, there will be a proliferation of middlemen, but on the plus side they'll be negotiating a higher salary for you since they get a cut.

  27. A new category of worker by Dunbal · · Score: 1

    How about illegal worker?

    --
    Seven puppies were harmed during the making of this post.
  28. Control by rahvin112 · · Score: 4, Interesting

    1099 Contractors can't be controlled like a regular employee. You can't train them and you can't direct their behavior (such as work hours, etc) while working. Companies don't like this, as in some of these internet companies are pulling their 1099 employees in as W2 employees so they can control them better. What these finance guys want is a new category where they can control you like a W2 employee but don't have to give you benefits like a 1099. The employer gets the best of both worlds and the employee gets bent over and taken.

    I'm sure the people suggesting this would like to see the minimum wage dropped to zero as well so they can make more cash exploiting people.

    1. Re: Control by Anonymous Coward · · Score: 0

      Companies can't control you but they can stop calling you for work. Got too much of an attitude for Uber? I'm sure they'll quit using your "independent contractor" services as well.

      Try telling Uber how much your going to charge them per mile. Ain't happening!

    2. Re: Control by Anonymous Coward · · Score: 0

      1099 if better in many cases for the employer. No health insurance, no unemployment, no tax collection.

      Trust me Uber is far from the first to deal with this. What's going to happen is Uber will setup a shell corp to hire the employees and Uber will contract with the new company. *That is what is going to happen.*

    3. Re:Control by blue9steel · · Score: 3, Interesting

      I'm sure the people suggesting this would like to see the minimum wage dropped to zero as well so they can make more cash exploiting people.

      Which would be a great idea if we coupled it with a guaranteed basic income. Lose the threat of starvation and homelessness and you put the labor negotiation back on fair footing.

    4. Re:Control by Anonymous Coward · · Score: 0

      I like the idea of a basic income, but not to the extent of a living wage. I feel that would be a huge tax burden.

      See this post: http://tech.slashdot.org/comments.pl?sid=7672649&cid=50084317

      Assuming 29% are under 22, 25% are seniors, and the rest are in between..
      Assuming 300 million legal citizens and permanent residents.
      87000000 at $250/month = $261000000000/year
      Assuming no one is married...
      75000000 at $750/month = $675000000000/year
      138000000 at $500/month = $828000000000/year (although, this assumes no social security)

      Total maximum: $1,764,000,000,000 or $1.76 trillion/year

      Although, I don't think a new category of employee is needed. Although, I do want to see exemptions if a driver earns less than $2000 doing this so-called "ride-sharing". If they earn less than $2k/year, then allow them to not bother with getting a commercial license and whatnot. Also, require insurance companies to cover the cost even if said insurance is for non-commercial activity.

    5. Re:Control by tehcyder · · Score: 1

      I like the idea of a basic income, but not to the extent of a living wage. I feel that would be a huge tax burden.

      It probably depends on how you define a "living wage". If the basic income is not enough to exist on, it's pointless having it.

      --
      To have a right to do a thing is not at all the same as to be right in doing it
  29. Why not a new tax system instead? by Anonymous Coward · · Score: 0

    Perfect time for the fairtax.

    The only reason this is a problem is because of the tax implications.

    1. Re:Why not a new tax system instead? by Dr_Barnowl · · Score: 1

      "Fairtax" is regressive. The rich love it, because it's a sales-only tax, and they spend less as a proportion of their income than anyone else. Who spends more? The poor.

    2. Re:Why not a new tax system instead? by suutar · · Score: 1

      which is why it's usually linked to a basic income.

    3. Re:Why not a new tax system instead? by Anonymous Coward · · Score: 0

      It should be coupled with much, much higher property taxes. Then it might work and live up to its name which at the moment seems farcical.

  30. Re:In the past this has been working under the tab by bluefoxlucid · · Score: 1

    If you ALSO want me to behave like an employee, controlling my hours, sitting through useless HR presentations, and acting like an agent of a corporation, then I'm an employee and I want the full benefit package

    Funny, that's exactly what contractors do. I was a contractor for 4 years at a desk where I had to show up in exact hours, attend OIG presentations about sexual harassment and child pornography on business systems, and of course was not allowed to post on Facebook where I work.

  31. Oh hell no! by duckintheface · · Score: 4, Insightful

    There is no reason why Uber can't have work rules for employee drivers that fit the current Uber business model. They just don't want to pay for benefits and offer employment protection like unemployment compensation and minimum wage. Uber wants to take the profits while transferring all the risk to the driver.

    There is no question that the current taxi system is a relic of another time and should be dismantled. But that can be done without dis-empowering the workers. The current trend in the courts is to classify drivers as employees rather than contractors since it is Uber that decides (via their app) when and where the work can be done. A contractor is free to decide when and where the work is done. So Uber does not fit the contractor model.

    --
    "He took a duck in the face at 250 knots." -- William Gibson, Pattern Recognition
    1. Re:Oh hell no! by gcnaddict · · Score: 4, Informative

      A contractor is free to decide when and where the work is done. So Uber does not fit the contractor model.

      And before anyone disagrees with this, I should note in duckintheface's favor that Uber penalizes drivers who decline too many fares, especially drivers of upscale services such as UberBlack who turn down too many UberX fares. Ergo, drivers cannot reasonably decide which work to take, reinforcing duckintheface's point.

      A cab doesn't have this problem.

      --
      Viable Slashdot alternatives: https://pipedot.org/ and http://soylentnews.org/
    2. Re:Oh hell no! by duckintheface · · Score: 1

      What you say is true gcnaddict. But at an even more fundamental level, the app which is used by the driver is controlled by Uber. The customer may use an app to submit their request to Uber but it is Uber that passes that to the driver. There is no direct connection between customer and driver. If there were, Uber could be cut out of the revenue stream. If Uber takes the money, Uber must take responsibility for the work assignment. And if Uber is responsible for the work assignment (time and place), the driver is not a contractor.

      --
      "He took a duck in the face at 250 knots." -- William Gibson, Pattern Recognition
    3. Re:Oh hell no! by Registered+Coward+v2 · · Score: 0

      What you say is true gcnaddict. But at an even more fundamental level, the app which is used by the driver is controlled by Uber. The customer may use an app to submit their request to Uber but it is Uber that passes that to the driver. There is no direct connection between customer and driver. If there were, Uber could be cut out of the revenue stream. If Uber takes the money, Uber must take responsibility for the work assignment. And if Uber is responsible for the work assignment (time and place), the driver is not a contractor.

      While I understand your logic i don't think it applies in Uber's situation. Uber does not dictate who must pickup a ride, instead it offers the opportunity to the rivers who can chose what fares to take; thus they are technically not directing their activities.

      --
      I'm a consultant - I convert gibberish into cash-flow.
    4. Re:Oh hell no! by Aaden42 · · Score: 1

      I'm not sure Uber as a middle man disqualifies the contractor status completely. (Other things might, though.)

      Compare to a sub-contractor in a web design gig. UberConsultCorp contracts with the client, takes their money. They call me to do some WordPress plugin work and pay me for it, of course retaining a cut for themselves. No question I'm a 1099 contractor, but I may not have had contact with the real "customer" nor could I have done the work without UCC farming it out to me.

      The time & place situation muddies the contractor status, but that's not unheard of in 1099. "I need this done by 5pm!" is still a valid 1099 gig. (You can bet you're getting my "you pissed me off and I don't like you" rate, but...) That's the time covered. Say I'm contracting to do hardware maintenance for a company, then it's, "We need you here by 5pm!" Time & place, but still clearly contractor status.

      I'm not sure the negative consequences of declining a gig necessarily hurt the 1099 status either. If UCC calls me up and I decline the job, it doesn't seem unreasonable that they'd look to find more dependable subs in the future. Their choice to call someone else next time doesn't mean they "fired" me as an employee.

      I'm not sure (other than nanny state, etc.) why there's such a push to re-class Uber's activities. If you could show me a rash of drivers being harmed in such a way that being "employees" would have protected them, maybe I'd feel differently. As it is, it seems like there are a large number of drivers content to work as contractors and Uber is obviously willing to pay them as such. It sounds like consenting adults conducting mutually beneficial business. (Unless you paid $1,000,000 for a NYC hack license, then I could see why you'd want to do everything you could to disrupt Uber's business model even though you're not really a party to it at all...)

    5. Re:Oh hell no! by Anonymous Coward · · Score: 0

      This isn't just an issue in the taxi business. Anywhere where you have a brokerage where goods or services are only connected with customers at the will of the owners of the brokerage is subject to control by said owners up to and including cutting off suppliers or customers for any arbitrary reason.

      The Internet was supposed to "cut out the middleman", but it didn't. Now we have Etsy, Elance, Uber, and countless others, and, if anything, there's less Free Market competition than before. Because when you have a dozen choices, you may shop around, but where there's a million choices, the odds are that you'll take the well-known one.

    6. Re:Oh hell no! by fraxinus-tree · · Score: 1

      Uber work also has pretty much enough similarities to "contract work". Uber decides where and when there IS work, contractor decides if and how it will be done (by him). And, PLEASE, I don't want my employer to pay for MY unemployment protection. YMMV, but I generally am much more efficient than the government.

    7. Re:Oh hell no! by duckintheface · · Score: 1

      If a driver accepts a particular piece of work (i.e. drive a particular customer), that work must be done at a time and place which is defined by Uber. A contractor would be able to do the work at the time and place of the contractors choosing. That's why car rides don't fit the contractor model.

      The illusion that the assignment is coming from the customer is part of the confusion. The assignment comes from Uber via the app. Yes, a driver can accept for reject a particular piece of work, but the time and place (and the standards that apply to the driving) are all decided by Uber.

        If you want to test my logic, just imaging that an Uber driver accepts the piece of work but then decides that he/she will perform the work half an hour later and will drive to a different place that that requested by Uber. If that is not ok, then this is not contractor work. The driver is an employee.

      --
      "He took a duck in the face at 250 knots." -- William Gibson, Pattern Recognition
    8. Re:Oh hell no! by LifesABeach · · Score: 1

      I have a feeling the lawyers are running up billing services; again. I have been a W2, and have done multiple 1099 types of work, at the same time. The IRS separates the two. You fill out the appropriate tax forms, and move on.

    9. Re:Oh hell no! by duckintheface · · Score: 1

      Aaden42: "The time & place situation muddies the contractor status, but that's not unheard of in 1099. "I need this done by 5pm!" is still a valid 1099 gig. (You can bet you're getting my "you pissed me off and I don't like you" rate, but...) That's the time covered. Say I'm contracting to do hardware maintenance for a company, then it's, "We need you here by 5pm!" Time & place, but still clearly contractor status."

      If the employer tells you every day that you need to be there at 5 PM, then you are an employee. If your continued association with the employer is dependent on constantly meeting a time and place requirement, you are an employee. I think, rather than showing that Uber drivers are contractors, you are showing that many supposed contractors are really not contractors at all. This is a common game played by employers who don't want to pay social security, workers comp, minimum wage, etc. But it's not working in the courts. That's why Uber is now calling for a 3rd classification.

      --
      "He took a duck in the face at 250 knots." -- William Gibson, Pattern Recognition
    10. Re:Oh hell no! by Anonymous Coward · · Score: 0

      And, PLEASE, I don't want my employer to pay for MY unemployment protection

      Your employer doesn't pay for YOUR unemployment protection, he contributes towards everybody's. It's a socialized system. That's how they work. If you think it's run inefficiently and you could do better please run for government and fix that. Caveat: lots of people have tried this already.

    11. Re:Oh hell no! by NotDrWho · · Score: 1

      "Honey, we just got an overdue notice for the mortgage, and the baby's sick and we don't have any insurance!"

      "Yeah, but in the Uber economy, I get to set my own hours!"

      --
      SJW's don't eliminate discrimination. They just expropriate it for themselves.
    12. Re:Oh hell no! by Aaden42 · · Score: 1

      There's nothing about my example nor about Uber that's "every day that you need to be there at 5 PM." In both cases, the time & place are agreed upon between contractor & client on a per-instance basis. The client's willingness to continue doing business with a particular contractor is based upon said contractor's past reliability at meeting the agreed upon conditions, but that's the essence of any business arrangement.

    13. Re:Oh hell no! by pnutjam · · Score: 1

      And, PLEASE, I don't want my employer to pay for MY unemployment protection. YMMV, but I generally am much more efficient than the government.

      I'm glad you think your more efficient, but I can almost guarantee you are not. Your just lucky enough to be in a good situation.

    14. Re:Oh hell no! by Straif · · Score: 2

      Most contractors work within strict location and time restrictions set by the clients.

      I would love to be a contractor working on your kitchen upgrade; I'll get it done when I damn well feel like it and if I get bored at 2am, don't be surprised if I head over the your house to start work on the marble countertops.

      --
      Of course that's just my opinion...... you could be wrong!
    15. Re:Oh hell no! by duckintheface · · Score: 1

      Straif, if you were working on my kitchen as a contractor, you would not continue to work on my kitchen after the work was finished. You would do a particular piece of work and move on. That is a sign of a contractor. Uber drivers finish a piece of work (driving a customer to a location) and then take another piece of work from Uber and another and another. That is a sign of an employee.

      The critical point is that the driver is working for Uber and not the customer. So the driver has persistent employment with Uber.

      --
      "He took a duck in the face at 250 knots." -- William Gibson, Pattern Recognition
    16. Re:Oh hell no! by slew · · Score: 1

      Most contractors work within strict location and time restrictions set by the clients.

      I would love to be a contractor working on your kitchen upgrade; I'll get it done when I damn well feel like it and if I get bored at 2am, don't be surprised if I head over the your house to start work on the marble countertops.

      On the other hand, most contractors are allowed to subcontract. Say if you are a kitchen contractor on the upgrade and you can't get all your work done (because you took too long on your previous job), you can hire your buddy to help you start this new job. Uber doesn't generally allow you to sub-contract your piecework to your buddy (say your buddy that has a commercial licence and occasionally works for Lyft, so has essentially equivalent qualifications to you). This would fail one of the more common tests for being a contractor vs an employee.

      In any case, the IRS has provided reasonably clear guidance in the area of limousine service. If the employing company is a pure dispatch company (e.g., it doesn't control how the drivers drive and the driver is not accountable to the company), then drivers can be considered contractors. If however, the employing company is a transport service (e.g., the company provides detailed instructions to its drivers
      and monitors their daily performance and the driver doesn't maintain business like doing advertising or keeping logs), then the drivers must be considered employees.

    17. Re:Oh hell no! by duckintheface · · Score: 1

      " the time & place are agreed upon between contractor & client on a per-instance basis."

      If the "contractor" is working on a defined time and place basis for the same client (Uber) over and over and does NOT work for any other client (Lyft) , then that "contractor" is an employee.

      Based on your definition, there are no employees at all anywhere. If you are a bank teller and you agree about time and place of each customer interaction on a per-instance basis, are you a contractor? I'm sure banks could create an app that would direct a customer to the next teller if you didn't accept the assignment. But that's not the meaning of "contractor".

      If instead you are an employee of a bank teller company, they could provide your services to the bank on a contractor basis. But you, yourself would not be the contractor.

      --
      "He took a duck in the face at 250 knots." -- William Gibson, Pattern Recognition
    18. Re:Oh hell no! by Registered+Coward+v2 · · Score: 1

      Straif, if you were working on my kitchen as a contractor, you would not continue to work on my kitchen after the work was finished. You would do a particular piece of work and move on. That is a sign of a contractor. Uber drivers finish a piece of work (driving a customer to a location) and then take another piece of work from Uber and another and another. That is a sign of an employee.

      The critical point is that the driver is working for Uber and not the customer. So the driver has persistent employment with Uber.

      Hardly. I work as a contractor and do so repeat work routinely for clients. It's my choice wether to do the work just as theirs to offer it but that is still a contractor - client relationship; not an employer - employee.

      --
      I'm a consultant - I convert gibberish into cash-flow.
    19. Re:Oh hell no! by Registered+Coward+v2 · · Score: 1

      If a driver accepts a particular piece of work (i.e. drive a particular customer), that work must be done at a time and place which is defined by Uber. A contractor would be able to do the work at the time and place of the contractors choosing. That's why car rides don't fit the contractor model.

      The illusion that the assignment is coming from the customer is part of the confusion. The assignment comes from Uber via the app. Yes, a driver can accept for reject a particular piece of work, but the time and place (and the standards that apply to the driving) are all decided by Uber.

      If you want to test my logic, just imaging that an Uber driver accepts the piece of work but then decides that he/she will perform the work half an hour later and will drive to a different place that that requested by Uber. If that is not ok, then this is not contractor work. The driver is an employee.

      You have a very odd, and incorrect, definition of contractor. The contracting company can define where the work is to be done; i.e. you will perform x at location y without it becoming an employer employee relationship. In Uber's case, a person requests a specific service, Uber provides the opportunity for a driver to respond, and if he does he performs the contractually agreed to work. The contract defines the time, place and scope of work; Uber cannot dictate that a particular person must do it, rather they offer the terms to any takers. It's conceivable that no driver wants the trip and it goes unfulfilled; if they were employees Uber could say you must take all trips assigned from time X to Y in the following area. Since Uber doesn't dictate when and where drivers must work; but offers them jobs they are free to turn down classifying them as contractors is not unreasonable.

      --
      I'm a consultant - I convert gibberish into cash-flow.
    20. Re:Oh hell no! by Registered+Coward+v2 · · Score: 1

      On the other hand, most contractors are allowed to subcontract.

      The key is most. You can contractually prevent a contractor from subing out work; doing so does not mean they are an employee.

      In any case, the IRS has provided reasonably clear guidance in the area of limousine service. If the employing company is a pure dispatch company (e.g., it doesn't control how the drivers drive and the driver is not accountable to the company), then drivers can be considered contractors. If however, the employing company is a transport service (e.g., the company provides detailed instructions to its drivers and monitors their daily performance and the driver doesn't maintain business like doing advertising or keeping logs), then the drivers must be considered employees.

      That's the crux of the question - is Uber acting as a taxi dispatch company that uses smart phones instead of land lines and radios to match fares with drivers or are they doing more than simply dispatching rides.

      --
      I'm a consultant - I convert gibberish into cash-flow.
    21. Re:Oh hell no! by lgw · · Score: 1

      If the employer tells you every day that you need to be there at 5 PM, then you are an employee. If your continued association with the employer is dependent on constantly meeting a time and place requirement, you are an employee.

      None of that is in any way true. Why would you believe that? Or are you talking about your personal ideal utopia? 1099 contractors often work the same hours and conditions as employees, in a desk next to employees, indistinguishable from employees, for some fixed duration. Many states now have a law that if you keep the contractor for a year or two, indistinguishable from employees in the work they do, then they're forced to employee status.

      This is a common game played by employers who don't want to pay social security, workers comp, minimum wage, etc.

      It's not just "a common game", it's the way things have always worked. The government mostly cares about getting its cut for SS from contractors (double what employees pay, what fun), but as long as taxes are paid, most states don't care.

      --
      Socialism: a lie told by totalitarians and believed by fools.
    22. Re:Oh hell no! by lgw · · Score: 1

      100% of my savings against becoming unemployed are retained by me, plus some (tiny) amount of interest after taxes. That's efficient. Saving for unexpected unemployment, at least to the amount UI pays out, is every adults fundamental responsibility. That's not "lucky", that's "grown up". Few enough grow-ups around these days, I guess.

      --
      Socialism: a lie told by totalitarians and believed by fools.
    23. Re:Oh hell no! by Anonymous Coward · · Score: 0

      The GP missed the point, and did not understand the case: http://www.scribd.com/doc/268911290/Uber-vs-Berwick

      Taken directly from the court case.

      • involved in every aspect of the operation
      • vet prospective drivers who must provide
      • provide personal banking information
      • provide residence information
      • provide SSN
      • pass DMV background checks
      • control the tools drivers use
      • must register cars
      • cannot be more than 10 years old
      • refer to industry standard... unclear what industry other than "taxi industry
      • constantly monitor via ratings.
      • passengers pay Defendants set price for trip, and Defendants, in turn, pay their drivers a non-negotiable service fee.
      • driver is not guaranteed a cancellation fee.
      • drivers encouraged to not take tips as counterproductive to advertising & marketing
      • drivers may hire people, no one other than defendants approved and registered drivers and allowed to use defendants IP
      • drivers do not pay for use of ip.
      • drivers have no managerial responsibilities that could affect profit or loss
      • Other than car, no investment in business.
      • application provided by defendant is essential for work.
    24. Re:Oh hell no! by pr0fessor · · Score: 1

      Uber wants to take the profits while transferring all the risk to the driver.

      They also want to transfer all the expense to drivers. I would be curious to know if they had designed Uber as a ride booking app and tried to sale or license it to existing taxi services somehow and failed prior to the current situation.

    25. Re:Oh hell no! by duckintheface · · Score: 1

      " 1099 contractors often work the same hours and conditions as employees, in a desk next to employees, indistinguishable from employees, for some fixed duration."

      I'm aware that happens lgw, but that's not what the law says. So it is a game. In any particular state, depending on the political leanings of the legislature or the opinion of the current US Atty. Gen, the "contracting company" may get away with it for awhile. But the law and the clear meaning of the words "contractor" and "employee" make clear what a farce this is.

      --
      "He took a duck in the face at 250 knots." -- William Gibson, Pattern Recognition
    26. Re:Oh hell no! by duckintheface · · Score: 1

      Your comments remind me of Julia Roberts in the film "Pretty Woman".

      "I say where, I say when, I say who." Yep, that's a contractor alright. :)

      --
      "He took a duck in the face at 250 knots." -- William Gibson, Pattern Recognition
    27. Re:Oh hell no! by david_thornley · · Score: 1

      There's no hard distinction on contractors vs. employees, but a lot of guidelines. If it were straightforward, we wouldn't have contentious lawsuits about whether certain people were contractors or employees. There's lots of guidelines. My cleaning service does the job on my premises (wouldn't be much good otherwise), but pretty much on their own schedule, they bring their own equipment, and perform their work not under our supervision. They're contractors. I don't know what the ruling would be on Uber workers, but it sounds like contractor to me.

      --
      "When you have eliminated the unacceptable, whatever is left, however improbable, must be the truthiness" - Holmes
    28. Re:Oh hell no! by lgw · · Score: 1

      Ah, I guess the 6-month workers are then employees of the 1099 contracting company in the normal case (with shit benefits and a tiny portion of the billed cost as pay).

      --
      Socialism: a lie told by totalitarians and believed by fools.
    29. Re: Oh hell no! by lgw · · Score: 1

      Thanks for the moralizing douche bag.

      Personal responsibility isn't even a moral issue - things you do that hurt or help others are moral issues (by most codes of ethics), this is simple enlightened self-interest, no morality required. Shit happens: be prepared.

      --
      Socialism: a lie told by totalitarians and believed by fools.
    30. Re:Oh hell no! by Anonymous Coward · · Score: 0

      While I understand your logic i don't think it applies in Uber's situation. Uber does not dictate who must pickup a ride, instead it offers the opportunity to the rivers who can chose what fares to take; thus they are technically not directing their activities.

      By this standard, I wasn't an employee when I drove a tow truck doing AAA motor club calls. I was paid by commission unless I fell below minimum wage for the week and could refuse or delegate calls.

      This is also a common model for sales people.

      I think a lot of people are getting caught up in the real contracting jobs that tech workers do, where people commonly work for multiple employers. Many Uber drivers only work for Uber. They are much more like a tow truck driver or sales person than a project worker.

      Some things that a project worker can often do that Uber employees can't:

      1. Negotiate their own prices with the actual customer.
      2. Negotiate the job parameters with the customer before accepting the price.
      3. Determine the actual job before determining if they will take it.
      4. Set the hours when they'll perform the job after taking it.

      Uber sets prices and specifies the job parameters. They do not communicate the details of the job to the drivers until they accept the job. Drivers have to do the job within a relatively short time frame. They can't wait until midnight when the roads are clear.

      Drivers can choose their routes to pickup, from there to the destination, and onward. But I could also do that when driving a tow truck. Drivers use their own vehicles. But I did that when delivering pizzas. Drivers can choose which leads to pursue but so can sales people. Uber drivers can work for multiple services but often don't.

      I don't think that it's as simple as having another agent assign work to you. When contracting, I would subcontract out work and other contractors would send work to me. But neither is it as simple as having some autonomy. I had a lot of autonomy when towing. In fact, I could go home and go to bed if I wanted. But no one ever thought that I was anything but an employee.

    31. Re:Oh hell no! by rch7 · · Score: 1

      This is the same how it may work in regular taxi companies, except that means of communication are different.
      The whole business model competitive advantage is skipping on employee taxes and regulations and marketing it as "cool new thing", that is all.

    32. Re:Oh hell no! by Registered+Coward+v2 · · Score: 1

      The whole business model competitive advantage is skipping on employee taxes and regulations and marketing it as "cool new thing", that is all.

      Yup. Uber sees to think because they are on this app thingy they are somehow different and the rules don't apply; except the one start say higher lawyers and lobbyists to get what you want. That part of the old economy they have down.

      --
      I'm a consultant - I convert gibberish into cash-flow.
    33. Re: Oh hell no! by tehcyder · · Score: 1

      this is simple enlightened self-interest, no morality required

      Acting in your own self interest IS a moral system.

      --
      To have a right to do a thing is not at all the same as to be right in doing it
    34. Re: Oh hell no! by lgw · · Score: 1

      Only trivially so.

      Acting in your own self interest is the default state if you will. You can call it a moral or ethical "code" if you like, but that's like debating whether Atheism is a religion - it doesn't really matter.

      I would personally reject any moral code that excludes my self-interest, as I believe moral codes should concern themselves with the interests of people, and I'm a people too! Moral codes that exclude my interest because of my race or sex or whatever don't count in my book.

      But my point was: humanity will likely never agree on the definition for moral behavior, but simple self-interest is much easier to discuss, and action which server neither your self-interest nor any moral code, well, don't do those.

      --
      Socialism: a lie told by totalitarians and believed by fools.
  32. Re:In the past this has been working under the tab by Anonymous Coward · · Score: 0

    >Implying anyone on Slashdot will ever collect from Social Security.

  33. NOOOOOO!!!!!! by halfdan+the+black · · Score: 5, Insightful
    I can think of few things that can destroy an economy faster than having a large amount of workers with ZERO job stability.

    What do think caused all of the stock market crashes: volatility. When you have people with no stability, like say working for a few days, then trying to find another job, they spend most of their time trying to find a job rather than actually working and doing something productive. Worse yet, with this kind of stability, people can not even begin to image of buying a house, a car, and I doubt working day to day, you can even get an apartment.

    This form of volatile, "at-will" employment is just INSANE.

    1. Re:NOOOOOO!!!!!! by Anonymous Coward · · Score: 0

      Well then you should be very afraid then, zero job stability is the goal of both industry and out government for years now.....

    2. Re:NOOOOOO!!!!!! by khallow · · Score: 1

      When you have people with no stability, like say working for a few days, then trying to find another job, they spend most of their time trying to find a job rather than actually working and doing something productive.

      Uber solves that problem by near eliminating the effort in finding short term work while you look for additional work. You work a job, switch over to Uber while you find a new job, and then you work the new job.

      Worse yet, with this kind of stability, people can not even begin to image of buying a house, a car, and I doubt working day to day, you can even get an apartment.

      You could always just start saving money. Self insuring against unemployment downtime solves a lot of these problems.

    3. Re:NOOOOOO!!!!!! by Anonymous Coward · · Score: 0

      This is just fear mongering. We do need to create as many well paying stable jobs as possible, but not all jobs are necessarily good jobs or stable jobs in the first place. We shouldn't try to make them into that either. The answer isn't to artificially stabilize jobs at the cost of making those products/services unaffordable (which is exactly what happens currently with excess regulation). The primary thing that ends up doing is funnelling the profits into the pockets of the top 1% and leaves the population with poor-paying low-skill no-skill employment opportunities (even if they are more stable).

      What we do a poor job at is directing our youth and our population in general at skills/educational training that will open up opportunities. We need to identify people who are going into training that won't succeed in the fields they are pursuing. Basic English skill are important for example yet how many of those English majors were informed about there potential career opportunities after graduating. If they knew 95% of English majors ended up working for low-pay as waiters and waitresses maybe they'd think twice about maintaining that education path.

      We should be funding research, development, manufacturing, and other productive start-ups.

    4. Re:NOOOOOO!!!!!! by tehcyder · · Score: 1

      You could always just start saving money. Self insuring against unemployment downtime solves a lot of these problems.

      Yeah, it makes you wonder why anyone ever bothered with unemployment benefits or social security in the first place. Everyone should just put aside enough of their wages to pay for themselves.

      It's so simple when you put it like that.

      --
      To have a right to do a thing is not at all the same as to be right in doing it
    5. Re:NOOOOOO!!!!!! by tehcyder · · Score: 1

      If they knew 95% of English majors ended up working for low-pay as waiters and waitresses maybe they'd think twice about maintaining that education path.

      That's part of the 95% of statistics that are made up bullshit.

      Here's a clue: just because you're an English major doesn't mean your only career option is being a literary critic or English professor.

      Do you really think that all chemistry graduates work as research chemists, all French graduates as translators or all CS graduates as actual computer science researchers?

      --
      To have a right to do a thing is not at all the same as to be right in doing it
    6. Re:NOOOOOO!!!!!! by khallow · · Score: 1

      Yeah, it makes you wonder why anyone ever bothered with unemployment benefits or social security in the first place

      Nobody in the US actually does bother with those things. They get covered whether they want it or not.

  34. By all means by fluffernutter · · Score: 1

    YES! Let's create a category where a company is allowed to associate with a worker so temporary they have absolutely no obligation to them whatsoever. The Walmarts and McDonalds of the nation won't start to jump on that AT ALL. Nothing can go wrong!

    --
    Laws are rules for the court, but merely a bottom bar to hit for life. Think beyond laws in your actions always.
    1. Re:By all means by Dr_Barnowl · · Score: 1

      McDonald's have experimented with this - people forced to clock out when the restaurant was empty because "they weren't working".

    2. Re:By all means by Anonymous Coward · · Score: 0

      YES! Let's create a category where a company is allowed to associate with a worker so temporary they have absolutely no obligation to them whatsoever.

      Indeed, let's.

      The Walmarts and McDonalds of the nation won't start to jump on that AT ALL.

      I hope so.

      Nothing can go wrong!

      Indeed, nothing can go wrong.

    3. Re:By all means by suutar · · Score: 1

      When I was working at BK, there were times I'd have rather done that than do the cleaning, but I don't recall a time when neither was needed except during some severe weather where we wound up just closing early for safety reasons (blackouts and hot grease do not go well together).

    4. Re:By all means by Anonymous Coward · · Score: 0

      You may have misunderstood.

      You don't get to go home, you juts don't get payed. You probably also are still expected to do the cleaning as anyone who doesn't "volunteer" for it is going to be seen as "not as dedicated a worker" as the ones who do come time to write up the next schedule.

  35. This is getting ahead of itself by Anonymous Coward · · Score: 0

    Because it still hasn't been conclusively argued or demonstrated that Uber drivers actually are being employed by anyone. If I ran a ride-sharing (or whatever you want to call this Uber/Lyft type thing) service on my Facebook wall, would I be considered an employee of Facebook?

    So why is it any different if I find my customers using Uber instead of Facebook? The only thing even remotely resembling an employment relation I can see is between ride-hailer and driver. All Uber does is provide the network for the two to find each other, and it's specious to assume on that basis alone that there's an employment relationship between the company and the hailer.

    (If Uber drivers aren't employees, they're not salaried/waged/permanent employees, contract employees, or casual employees. I mention this because there are people in this thread suggesting that casual/temp employment is a suitable classification. It isn't, and it can't be a suitable classification until the existence of an employment relationship is demonstrated.)

    Basically, an Uber driver is self-employed. Hiring an Uber driver to drive you around is like hiring a bricklayer to lay you some bricks. There is no employment relation between the worker and hirer.

  36. Bullshit ... by Anonymous Coward · · Score: 1

    This is increasingly about billion dollar corporations trying to create a new category of worker which gives them maximum benefit, while giving nothing at all to the employee.

    This is entirely about greedy assholes whose business model is reliant on screwing up the labor market so badly they can abuse employees in any way they see fit.

    All so that some asshole of a CEO can make millions in bonuses as he works to hype his over-inflated stock so he can cash out and leave someone else holding the bag.

    Greedy assholes want the economy to change around them so they can be the best damned greedy assholes possible.

    This is just the continuation of the raping of society to benefit a relatively small amount of people, while telling us the lie that somehow that gives us all prosperity.

    And this "new class of worker" is pretty much an example of this. We fuck everybody else over so this bullshit libertarian "sharing economy" can be made profitable by assholes who want to bypass both industry regulations and employment laws.

    Uber are fucking crooks and liars, pretending like fucking over everybody else is somehow good for us.

    American political thought is a fucking venereal disease.

  37. Re:In the past this has been working under the tab by tlhIngan · · Score: 1

    Funny, that's exactly what contractors do. I was a contractor for 4 years at a desk where I had to show up in exact hours, attend OIG presentations about sexual harassment and child pornography on business systems, and of course was not allowed to post on Facebook where I work.

    Then more likely you weren't a contractor. You were an employee treated as a contractor.

    It's why tax agencies are scrutinizing employment contracts because there are a bunch of differences between a contractor and an employee. And simply calling an employee a contractor doesn't make them one - there are many things a contractor is free to do, and tax agencies look to that.

    In other words, most "contractors" are really working in an environment where the employer is just screwing them over - they aren't real contractors.

    Uber's probably looking at the same as well - paid indentured servant perhaps? I mean, it isn't that hard to make them real independent contractors - you just have to run the risk that half your Uber drivers might also work for Lyft and competitors. Binding them to Uber and making them follow Uber's way is closer to employee than contractor.

  38. Re:In the past this has been working under the tab by Chelloveck · · Score: 1

    If you ALSO want me to behave like an employee, controlling my hours, sitting through useless HR presentations, and acting like an agent of a corporation, then I'm an employee and I want the full benefit package. It's pretty black-and-white and has never really been an issue in the dozens of contracts I've been involved in.

    Glad that works for you, but you do realize that there are an awful lot of contractors who sign contracts stipulating that they'll be available certain hours, work in a certain place, and even dress a certain way? You're certainly within your rights to respond to such a contract with, "If you're going to treat me like an employee, then I want the full package." A lot of other people would rather be considered contractors despite the employee-like restrictions. It's not a black-and-white contractor-with-only-acceptance-criteria versus employee-with-working-restrictions choice for everyone.

    --
    Chelloveck
    I give up on debugging. From now on, SIGSEGV is a feature.
  39. Re:In the past this has been working under the tab by FlyHelicopters · · Score: 1

    Funny, that's exactly what contractors do. I was a contractor for 4 years at a desk where I had to show up in exact hours, attend OIG presentations about sexual harassment and child pornography on business systems, and of course was not allowed to post on Facebook where I work.

    You weren't a contractor, you were an employee.

    If you did that for 4 years, it may be worth your time to open a complaint with the IRS, the company owes you SS contributions and tax payments. You might be shocked how much money it ends up being.

  40. You can call it what you want... by Anonymous Coward · · Score: 1

    "Dependent contractor" or "Independent contractor"... The government doesn't care if you call them scabs, dickwads, or chodes!

      Regardless of your terminology, Uber will end up collecting taxes for their employees. I guarantee it. Uber will be the example!

    Too bad they just bought their new huge headquarters because the American taxpayer is going to be the one footing the bill for that shit once they're gone.

  41. We already have this class of worker by Chelloveck · · Score: 1

    We already have this class of worker. It's called a "day laborer". Show up looking for work, or don't, on a day to day basis. Get paid if you show up and somebody has work for you. Drop in and out of the labor pool at will. There's no fancy app to arrange day labor, but apart from that how is driving for Uber any different from hanging around outside Home Depot hoping someone happens by who needs half a dozen cheap construction workers or landscapers?

    --
    Chelloveck
    I give up on debugging. From now on, SIGSEGV is a feature.
    1. Re:We already have this class of worker by FranTaylor · · Score: 1

      We already have this class of worker. It's called a "day laborer".

      In a population of day laborers, who has the steady income required to get a mortgage? Nobody, that's who. Who's putting away money to give their children a better future? Nobody! What a great system!

    2. Re:We already have this class of worker by Moof123 · · Score: 1

      Day laborers are often off the books, and do not pay into social security or get any sort of protections in old age. More often than not hiring day laborers is illegal.

    3. Re:We already have this class of worker by Chelloveck · · Score: 1

      I didn't say it was a good system, just that it wasn't a new system and therefore didn't need a new category of worker. As a matter of fact I actually expect Uber drivers will end up with all the prestige and advantages of any other day laborers -- which is to say none at all, and living hand-to-mouth unless they're simply using it to supplement some steady form of income.

      --
      Chelloveck
      I give up on debugging. From now on, SIGSEGV is a feature.
  42. Unlicensed fireman by xxxJonBoyxxx · · Score: 1

    >> fireman (Jerry, you really have to stop making those 'wee-ooh wee-ooh' sounds while you drive)

    Where I live we call them "volunteer firefighters" and everyone knows to get their kids away from the streets when the town whistle sounds because a couple of pick-ups with flashing lights on their dashboards will be flying through your residential neighborhood at 3x the speed limit anytime now.

    1. Re:Unlicensed fireman by FranTaylor · · Score: 1

      Where I live we call them "volunteer firefighters" and everyone knows to get their kids away from the streets when the town whistle sounds because a couple of pick-ups with flashing lights on their dashboards will be flying through your residential neighborhood at 3x the speed limit anytime now.

      these are the poor souls who end up getting vaporized in industrial accidents

      nobody even knows what's going on in that big factory, do they?

      they are "volunteer" on purpose, it's better to vaporize those without income.

  43. Re:In the past this has been working under the tab by Anonymous Coward · · Score: 0

    So which party is going to commit political suicide by removing it?

    They were talking about it not existing 25 years ago when I started working. Its about 25 years until I start using it. That is not THAT long from now.

  44. Conservation of Ambiguity by wol · · Score: 1

    For the people who complain about the gray line between the two existing categories - creating a third will not solve that problem. Then you just get two gray lines between three categories. This is sometimes referred to as the conservation of ambiguity.

    --
    If you think deeply enough, you will have no single direction for your outrage.
  45. Re:In the past this has been working under the tab by xxxJonBoyxxx · · Score: 1

    >> So which party is going to commit political suicide by removing it?

    I'll bite. I'll bet it's the Democrats, who start to shift more retirement benefits into services (particularly health services, food stamps and housing assistance for the elderly; all such programs currently exist) and away from cash payouts (which will be how they get some Republicans to go along). Long story short, the government will claim that your total benefit continues to increase while your cash payments drop.

    (Many corporations have already piloted this model in the last 6 years with "total benefit" statements that show why it's OK there are no raises because the company picked up the tab for health insurance spikes instead, for example.)

  46. Re:Benefit Dodgers by sethstorm · · Score: 1

    No thank you, but you're asking to make the problem worse.

    Default to FTE's, and make any lesser form (contract work, third party, and/or combinations) be strictly on no-duress consent.

    --
    Twitter supports and protects racists - by smearing their critics with the "Hate Speech" label.
  47. Re:In the past this has been working under the tab by bluefoxlucid · · Score: 1

    Then more likely you weren't a contractor. You were an employee treated as a contractor.

    It's why tax agencies are scrutinizing employment contracts because there are a bunch of differences between a contractor and an employee.

    Well maybe the IRS should scrutinize itself, because guess who hires contractors who must come in between 6am-6pm, span 8 hours, take a half-hour lunch (and it MUST be taken--if you work straight with no lunch, you must stay 8.5 hours and file a 30 minute lunch, and it can't be taken within an hour of arriving or leaving), track your time using only the Deltek software, use their specific tools and software systems, attend sexual harassment training required by HR, attend yearly presentations by the agency's Office of the Inspector General about child pornography and fraud, etc... all while the agency carries no responsibility for your benefits, and has the ability to fire you?

  48. Re:In the past this has been working under the tab by bluefoxlucid · · Score: 1

    The IRS hires contractors this way. The IRS also defines, in IRS publications, what a contractor is. Do you not know what OIG is? It's the Office of Inspector General, the law enforcement branch of any government agency. Social Security has OIG, the IRS has its own OIG, your state unemployment agency has its own OIG. These are the people who show up at your house with guns when you lie on your forms and get money that doesn't belong to you.

    The IRS, the agency which defines what a contractor is, hires contractors who must work on 6am-6pm flex time, straight 8 hours, with a half hour lunch--if you don't take a lunch, you must work 8.5 hours straight, and file it as 8 hours (you don't get paid that last half hour). They can also fire you, specifically, without eliminating your position. They also don't pay your benefits, because you're a contractor.

    I don't work as a contractor anymore because the logistics are annoying.

  49. SLAVERY by Anonymous Coward · · Score: 1

    A NEW category OF WORKER IE a .... SLAVE!

  50. Be careful "Inc.'ing yourself" to avoid taxes by davidwr · · Score: 1

    Incorporating yourself and paying yourself a salary to avoid payroll taxes is likely to attract auditors (well, not this year, the IRS is too poor, but in the future, it will).

    If you do this, be sure to contact a tax professional so you know what hoops to jump through to survive an audit.

    On the plus side, you can write off the tax professional's fees as a business expense :).

    --
    Knowledge is how to play a game, intelligence is how to win, wisdom is knowing what game to play.
    1. Re:Be careful "Inc.'ing yourself" to avoid taxes by cayenne8 · · Score: 1

      Incorporating yourself and paying yourself a salary to avoid payroll taxes is likely to attract auditors (well, not this year, the IRS is too poor, but in the future, it will).

      If you do this, be sure to contact a tax professional so you know what hoops to jump through to survive an audit.

      On the plus side, you can write off the tax professional's fees as a business expense :).

      This is NOT something new. This is something S-Corps have been set up for and used for years. I know some people push the limits on them, but not me. I act fully within the law and use every legal means to save every bit of money from taxation that I can. The rules are there, you just have to learn them and play within them.

      Yes, like anyone doing business today dealing with all this, I have a CPA that does my annual taxes and advises me when I have questions. Yes, that is a write off too.

      :)

      But again...this is something many contractors do and set up to save tax money. It is fully legal. Sure, anyone can get audited, and the IRS these days *DOES* seem to pick on the little guy because they don't have a fleet of lawyers, but if you don't try to push the limits and are reasonable on deductions and all...you can get by without raising flags.

      --
      Light travels faster than sound. This is why some people appear bright until you hear them speak.........
  51. With sane courts by Anonymous Coward · · Score: 0

    With sane courts, if you provide the tools and pick when and where you work, you're a contractor. If you don' supply the tools, or you have to show up and do what you're tasked with, then you're an employee. California has differences deliberately to make farm laborers into "employees" in order to at least get employment taxes out of illegals.

  52. A category already exists by ThatsNotPudding · · Score: 1

    Homeless, or a sub-classification to match the story: Living In Your Car.

  53. We all know what this is really about. by tlambert · · Score: 2, Insightful

    We all know what this is really about.

    Revenue collection.

    It's about the IRS and the state governments not liking that there are 162,037 independent contractors they have to go after for taxes, rather than going after a single choke-point for those same taxes. Thus they would prefer that Uber drivers be employees, rather than contractors.

    The answer for Uber is obvious: The cheapest S-corp incorporation runs $39. So to get those 162,037 incorporated as contracting agencies with a single employee would cost $6,319,443.

    I'm sure Uber would be happy to pay that out of petty cash. Now the IRS has 162,037 contracting agencies to deal with, all under the total number of employees thresholds that would subject them to most of the government regulations that Uber would be subject to, were they Uber employees.

    So they are back in the same regulatory boat they started in, without the ambiguity that regulators are trying to exploit to get their hands on the money, and leaving with exactly the same enforcement issues they wanted to avoid.

    They could probably also spin off an "Uber Business Services Division" that charges a flat fee for:

    Business license
    Business name and/or DBA registration
    Account for taxes
    Sales tax account
    Federal and State Tax ID
    Business checking credit accounts
    Merchant account (to process credit cards) (or used the new "Uber Payment Provider Gateway" instead)
    Insurance (business, liability, property, if applicable)
    Accounting software (or use the new "Uber Books" online accounting system)

    Or they could just create a damn franchising company, and make them all franchisees, with Uber's take coming as franchise fees.

    P.S.: I suggested a similar approach to AirB&B to incorporate them all as actual B&B's...

    1. Re:We all know what this is really about. by Anonymous Coward · · Score: 0

      It's more about screwing workers. Not paying benefits to workers and social security etc saves companies money, that's why big evil companies want to avoid paying it. Sure, some govt agencies are in search of tax revenues, and we should not waste our money, but one day your will be old, one day you will need govt health insurance. Unless you are a very fortunate 1%. 99% change you won't be one of them :-)

        My mom worked her whole life (and had health insurance), then in her 50s she had some health issues, got really sick, and lost her health insurance. And she died. My family had some money to help her pay for her medical bills, but if she wasn't so fortunate, should she just have had no place to live, no money for food?

      That's an important part of where the taxes go to pay for.

    2. Re:We all know what this is really about. by tlambert · · Score: 1

      It's more about screwing workers. Not paying benefits to workers and social security etc saves companies money, that's why big evil companies want to avoid paying it.

      How is an employer holding that money back and giving it to the government, instead of paying it to the worker directly, any different than paying the whole thing to the worker, and the worker making the payments to the government out of what they receive?

      How is it any different from paying it to a contracting agency that hass full time employees, and the contracting agency holding that money back and giving it to the government, instead of paying it to the worker directly?

      Sure, some govt agencies are in search of tax revenues, and we should not waste our money, but one day your will be old, one day you will need govt health insurance. Unless you are a very fortunate 1%. 99% change you won't be one of them :-)

      Over 23% of the U.S. workforce, including former congressmen, presidents, mail carriers, and military personnel, will receive some form of government pension which covers these things already. The rest of us are expected to have to pay for either ACA or medigap insurance ourselfs -- for which we can receive a tax credit, but we only get that if we paid taxes in that fiscal year, and it only comes back to us as a tax refund. Otherwise, the money is just "gone"; for example, if we are retired.

      My mom worked her whole life (and had health insurance), then in her 50s she had some health issues, got really sick, and lost her health insurance. And she died. My family had some money to help her pay for her medical bills, but if she wasn't so fortunate, should she just have had no place to live, no money for food?

      That's an important part of where the taxes go to pay for.

      You seem to have the stupid idea that contractors are not responsible for paying their taxes, or that they will get away with not paying them, and that this will kill people like your mom, because the federal government isn't already running at a deficit, and is loathe to go into debt to pay benefits.

      At the very worst, enforcement becomes a bigger job; and while states don't like it, it will mean more jobs for enforcement personnel, including auditors, and more jobs for CPAs and for tax preparers, and so on. So it will result in a net creation of jobs by making tax collection a more manual process.

      From my point of view (jobs creation, disruption of a taxi industry who won't do pickups in the Inner Sunset in San Francisco, even if you schedule your trip to the airport days ahead of time), Uber contractors are a win all the way around.

      And yeah, if it starts becoming a big issue, I'm going to follow up on the "incorporation as a private contracting agency franchise" idea myself. I've already had some emails from a couple of interested VCs.

  54. Incorp in a cheap state doesn't help by Anonymous Coward · · Score: 0

    If you're doing the business in California, then California gets their taxes. In order to do business in California, you'd have to register as a "foreign corporation" (i.e. one that is not incorporated in CA). And guess what, the Franchise Tax Board wants to see your $800+1.5% too.

    And, as a business operating in California, don't forget you need to pay personal property tax (approx 1% per year) on all business property. That gets down to stuff like the chair you're sitting on (which you can depreciate, of course), your computer, the paper in your printer, etc.. This applies whether you incorporated in CA or elsewhere.

    There may be other reasons to incorporate elsewhere. You might be able to use your incorporation state as a legal venue for interpretation of contracts and various regulatory matters. Delaware has fairly light requirements on reporting, for instance.

  55. Re:In the past this has been working under the tab by cayenne8 · · Score: 1

    Funny, that's exactly what contractors do. I was a contractor for 4 years at a desk where I had to show up in exact hours, attend OIG presentations about sexual harassment and child pornography on business systems, and of course was not allowed to post on Facebook where I work.

    Then more likely you weren't a contractor. You were an employee treated as a contractor.

    Not necessarily, this is almost exactly how it works on Federal Contracts. You work in the federal building on their networks, etc. You have core hours you have to adhere too, but you can be fully 1099 with no problem.

    --
    Light travels faster than sound. This is why some people appear bright until you hear them speak.........
  56. Re:In the past this has been working under the tab by Anonymous Coward · · Score: 0

    Unless the client hired you directly and you billed them for your time, you were an employee of the staffing agency that placed you.

  57. Great article on same topic by Anonymous Coward · · Score: 0

    What A New Class Of Worker Could Mean For The Future Of Labor
    But while a third classification sounds progressive, nobody’s really sure what it would mean in practice. The hope is to find find a way to distribute the responsibility of employment over multiple employers, making it possible for them to jointly contribute to a single benefits package that is linked to the individual, wherever that person happens to be working at any given time.

  58. Spidey sense is tingling... by Moof123 · · Score: 1

    When I see lines like "...that would be better for businesses, consumers, and all those workers themselves." I get VERY skeptical. Rarely do we all win.

    Uber has all the smell and feel of Wiley Coyote staying in air by running fast enough and not looking down. Drivers are not making good enough wages once you factor in depreciation and other costs. A whole bunch of the usual costs of doing business are being swept under the rug, such as benefits, unemployment protection, and social security payments. Of these part time drivers who come and go, it means someone else is footing those bills (like their main employer, or the worker when their car dies).

    1099 contractors are already an abused definition, just as exempt is. Adding more categories is just going to make it easier for corporations to arbitrage people's desire to put food on the table.

  59. That worker category has been around forever by Anonymous Coward · · Score: 0

    Initially, it's casual labor. Join the line at the edge of the Home Depot parking lot or sign up with Uber.

    It's also what craft (not manufacturing) unions were for. Hiring halls and all that were to make it easier for employers to get labor under standardized conditions, with the union handling the administrative details and (often) the benefits. Of course, that got a bit out of hand and people began treating them as casual labor (see above) killing off the unions.

  60. Re:In the past this has been working under the tab by ortholattice · · Score: 1

    If you ALSO want me to behave like an employee, controlling my hours, sitting through useless HR presentations, and acting like an agent of a corporation, then I'm an employee and I want the full benefit package

    Funny, that's exactly what contractors do. I was a contractor for 4 years at a desk where I had to show up in exact hours, attend OIG presentations about sexual harassment and child pornography on business systems, and of course was not allowed to post on Facebook where I work.

    In a fair world, none of this should have any relevance to whether one is an "employee" or "contractor". In the past, as an employee I have had huge freedom to work my own hours, and as a contractor, I have worked under a rigidly controlled corporate structure with fixed hours and so on. It all depends on the situation, such as whether regular employees need to have you available during their working hours.

    A key difference as I see it is that if you are a contractor, you should be paid at least the loaded rate (i.e. with benefits) of an employee doing the same work. If you aren't, the company is screwing you. And yes, I'm sure many companies are screwing many "contractors" who aren't in a good position to bargain. But I think that should be a primary part of the test of whether a "contractor" is really an employee.

  61. No thanks by Anonymous Coward · · Score: 0

    A "aharing economy" is a socialist one. That is not acceptable. For all you people that want that, understand that's not what America was founded on, and we are willing to fight. Many people are willing to fight with military force.

    Stop infringing on constitutional rights.
    Stop trying to control all aspects of our lives.
    Stop trying to obstruct our freedom.

    Leave us alone, and people will leave you alone. It's pretty simple.

  62. Re:In the past this has been working under the tab by bluefoxlucid · · Score: 1

    The real difference is just how you file taxes. It's even a stretch trying to say it's efficiency--it used to take 4 people of diverse skillsets to run a data center, but better management practices and software platforms have left us 80% idle, so we have 4 people contract out to 5 companies and replace 20 workers; but then you have contractor who work 40 hours each week at one desk at one business.

  63. Exactly. The Category is called "Robots". by Qbertino · · Score: 1

    Uber ist just the fairly short transition phase.

    --
    We suffer more in our imagination than in reality. - Seneca
    1. Re:Exactly. The Category is called "Robots". by Anonymous Coward · · Score: 0

      self driving cars will absolutely require that the ENTIRE traffic system, road and every vehicle is automated. you have to eliminate human drivers completely before you can have a self driving transportation system.

  64. Some comments by Anonymous Coward · · Score: 2, Interesting

    but on the plus side they'll be negotiating a higher salary for you since they get a cut.

    Are you sure? Maybe it's more likely that these agencies are going to compete against each other, and will offer lower rates than their competition.

    I feel we need either a negative income tax or a basic income.

    For a negative income tax...
    If Poverty Level > Federal AGI, then (Poverty Level - Federal AGI) / 2 = Credit
    For citizens and permanent residences only. For those who are 22+ years old.
    The divide by 2 thing is to incentivize working still as it doesn't completely fill the gap to get out of poverty.

    For a basic income...
    For citizens and permanent residents only.
    22-65, $500/person/month and $750/couple/month
    21-, $250/person/month
    66+, $750/person/month or $1125/person/month or social security, whichever is higher
    The 1.5 multiplier assumes less expenses when a married couple lives together. Although, someone can avoid that by simply not getting married I guess.

    I figure this would be beneficial towards the homeless, especially if four homeless individuals were to pool their money and live together.
    This wouldn't be a replacement for SNAP. If it were, I'd add a flat $200/person/month into those figures above.
    This would need to be adjusted annually for inflation.

  65. A faster race to the bottom by Anonymous Coward · · Score: 0

    So as a dependent contractor I get all the financial risk with the added benefit that I can pick and choose my own hours.

    Sounds like a good way to skirt the protections of labor laws to me.

  66. Re:In the past this has been working under the tab by Anonymous Coward · · Score: 0

    I was thinking the same thing when I came in here. There's a class of casual employee that has always existed. Jobs to small, too fleeting to go through the hassle of determining SSN and full withholding, issuing cheque, etc. In many cases, employers simply ignore the law and pay cash. Small job contractors are happy to accept payment under the table to avoid reporting income. With the new economy and Uber-like employees the situation has escalated to the point where it cannot be ignored. At the very least, Uber must be able to report aggregate income for its contractors. It may seem like an intrusion to have the government know all this, but paying taxes is everyone's duty and I kind of like the roads and air traffic control and other benefits that it pays for.

  67. Easily solved by Anonymous Coward · · Score: 0

    It's okay guys, I got this one:

    "Student Athlete"

  68. Re:Benefit Dodgers by david_thornley · · Score: 1

    "Gee, you're a month away from losing your home and your baby's sick? Here, sign this contract." is not duress.

    --
    "When you have eliminated the unacceptable, whatever is left, however improbable, must be the truthiness" - Holmes
  69. STOP IT by Anonymous Coward · · Score: 0

    Damnit

    STOP shifting focus to the top of the page when I am trying to fucking read the comments. 4th time in 2 stories. If we lose our place I guess we will stick around longer eh? Bastards. The new ads are NOT THAT FUCKING important :/

  70. Statutory Employee by Anonymous Coward · · Score: 0

    We already have a third category ...

    http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Statutory-Employees

  71. A new category for employees by OrangeTide · · Score: 1

    So like sharecropping?

    --
    “Common sense is not so common.” — Voltaire
  72. Sorry, but you miss the key word. "Dependent." by aussersterne · · Score: 1

    This is a "contractor" that has one "contract" with one company, and possesses none of the infrastructure or expertise generally associated with operating an actual "business," meaning that they are, in fact, *dependent* on this *particular* contract and its stability for most or all of their income and livelihood, without the ability to easily find or draw others, particularly if they are to avoid putting this primary and essential (for them) contract at risk.

    In fact, there is a word for this relationship already: employment.

    What is being suggested here could just as easily be rephrased as "it's time for a new kind of relationship, 'employee without benefits that is not subject to federal labor laws.'"

    --
    STOP . AMERICA . NOW
  73. Let's take your argument at face value. by tlambert · · Score: 1

    Drivers are not making good enough wages once you factor in depreciation and other costs.

    Let's assume this is true, for the sake of argument. It isn't, as published financials demonstrate, but let's ignore them as propaganda, and assume your statement is true.

    Your argument boils down to:

    (1) Uber drivers are bad at math

    (2) I am better at math, so I can see how they are being cheated

    (3) Uber drivers must be protected by society from being bad at math

    (4) Despite the fact that society condones state run lotteries, which are a tax on people who are bad at math

    Is there anything I have missed?

    1. Re:Let's take your argument at face value. by Chris+Johnson · · Score: 1

      No, that's actually a terrific analogy. Uber is lottery economics, but in a different way from things like writing apps for iPhone (where you will fail and lose time and money hoping to be one of the three trendy apps that makes somebody millions).

      In the Uber model, you are the lottery ticket, and Uber is the gambler. Their purpose is to keep squeezing the situation and conditions of employment until they are holding a large number of winning lottery tickets. That is defined as 'person who is dumb enough to substantially lose money and resources competing with rivals for that Uber job'.

      Everybody haughtily suggests that THEY would insist upon good terms, put away money for retirement (rather than dump it back into the vehicle and into fancier bottles of water: hey look, an Uber driver with a complimentary wet bar for passengers! Top that, taxis! Stuff like that)

      As such, they are saying that THEY are not Uber's winning tickets, because they would demand too much or call Uber's bluff and leave. Every time they do, Uber gets another chance to try and find somebody more desperate. It's a race-to-the-bottom condition, not necessarily even for passengers depending on the terms Uber sets, but for anybody trying to conduct business in that market segment. It's dumping to try and lock in total control of the market.

      We don't know Uber would take the Wal-Mart approach of cutting back customer quality and draining money that way. They could also take the Google approach of doubling down to try and get into a unassailable position in order to control future transportation completely (when the self-driving cars take over).

      For the time being, if you are an Uber driver you are the lottery ticket Uber purchases. If you exercise rational self-interest you are a losing lottery ticket. Uber requires that you not do that. The business is based on taking maximum advantage of people prepared to be cheated in order to undercut the next guy, and this is not a model where you can bring rational choices and expect to survive for long.

      To be a winning ticket for Uber, you need to act as if you are sacrificing heavily in the short term so you can build a better position competing for work in the future as a day laborer. Because if you won't, the guy next to you might: and then you lose everything, Uber doesn't want you. The self-sacrificing guy made a better (to them) offer.

      This is the problem with setting up a class of employment based on rational self-interest where employers benefit most by people abandoning that rational self-interest. It's a lottery, and you know you can't trust most people to stay rational enough of the time.

  74. Isn't Uber actually the house? by tlambert · · Score: 1

    In the Uber model, you are the lottery ticket, and Uber is the gambler.

    In your analogy, Uber is the state and the driver is the gambler.

    Only it isn't gambling, if the slot machine always pays out to the gambler.

  75. I know this thread is pretty dead by rsilvergun · · Score: 1

    but can't let this slide. A _good_ Uber driver makes about $15/hr after accounting for the cost of driving. That's not even $30k/year. Dude, they're not anywhere near the level's your thinking about, nor will they ever be. If they worked 80 hours a week (which would be incredibly dangerous) they _might_ clear $60k... You've spent too much time in cushy Computer Science and/or engineering gigs. These folks don't have anything to save. The best of the best barely qualify as "Working Poor"...

    --
    Hi! I make Firefox Plug-ins. Check 'em out @ https://addons.mozilla.org/en-US/firefox/addon/youtube-mp3-podcaster/
  76. Re:In the past this has been working under the tab by tehcyder · · Score: 1
    Working "under the table" on a cash in hand basis is decidely NOT "common and well-accepted" and if you get caught doing it I have no sympathy when your tax authorities dump a ton of shit on your head.

    The rest of us don't pay taxes for the fun of it. Tax evasion is a cowardly, anti-social and selfish crime.

    --
    To have a right to do a thing is not at all the same as to be right in doing it