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Gig Economy Business Model Dealt a Blow in California Ruling (nytimes.com)
In a ruling with potentially sweeping consequences for the so-called gig economy, the California Supreme Court on Monday made it much more difficult for companies to classify workers as independent contractors rather than employees. The New York Times: The decision could eventually require companies like Uber, many of which are based in California, to follow minimum-wage and overtime laws and to pay workers' compensation and unemployment insurance and payroll taxes, potentially upending their business models. Industry executives have estimated that classifying drivers and other gig workers as employees tends to cost 20 to 30 percent more than classifying them as contractors. It also brings benefits that can offset these costs, though, like the ability to control schedules and the manner of work. "It's a massive thing -- definitely a game-changer that will force everyone to take a fresh look at the whole issue," said Richard Meneghello, a co-chairman of the gig-economy practice group at the management-side law firm Fisher Phillips. The court essentially scrapped the existing test for determining employee status, which was used to assess the degree of control over the worker. That test hinged on roughly 10 factors, like the amount of supervision and whether the worker could be fired without cause.
Here is what they should do:
You are an employee if ANY of the following are true:
* They have any control over your clothing, besides requiring safety equipment
* They control your hours, rather than give deadlines.
* They can require you to do things using their method, rather than accepting any method.
* They make any attempt to find out if you are working for other people, let alone prevent you from doing this.
* They decide which sub-contractor does the work, rather than the head contractor.
excitingthingstodo.blogspot.com
potentially upending their business models
Good.
A company's business model should not be based on exploiting people who are desperate for work.
Pay decent wages and benefits, or, GTFO.
When someone working 40 hours a week at the federal minimum wage has a gross income (not take-home) that is less than the rent on the average studio apartment in LA, it's not a living wage.
On the other hand, California has its own minimum wage, which is quite bit higher (and still nowhere near a living wage), so your whining is fairly stupid anyway.
I do contract work for many companies and my work is core to what they do. I set my own hours, use almost all my own equipment, work in my own office, subcontract out some QA and repairs, I even bill in 15 minute intervals - I don't see how I'm different from an Uber driver. The existing test of control made perfect sense.
Question - will I now have to be an employee of the American companies I'm currently doing contract work for? or just companies in California?
This freethinking, gun-owning vegetarian apologizes, in advance, for any cognitive duress experienced by our clearly 'well-intentioned but otherwise government-educated' brethren in the UK - lay off the soy, boys; the effects of phytoestrogen are showing... ;)