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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.
Half of the gig economy is companies trying to cheap out on traditional worker benefits. Uber is one of them, and they can suck it up.
A worker-centric gig economy isn't managed by the platform: the workers should decide whether/how they deliver the goods or services, have some meaningful control over prices/profits, and be able to accrue a meaningful reputation.
If the gig platform forces its workers to behave 90% like employees, then yeah, round that number up and call them employees.
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According to the latest ruleset, this post should be modded as Vorpal Flamebait +5.
Having more people on the dole means more control so the government can take better caer of the people.
Save it the Libertarian/Conservative fairy tale shit.
The housing market has broken from the labor market. In the olden days, housing prices were limited by people's incomes.
No more. Thanks to cheap money for the last decade, hedge funds looking for returns, they have used that cheap money to buy housing; which subsequently pushed housing prices out of the reach of many people.
All over the country.
However, the market for labor - all up and down the food chain - hasn't kept up because unlike housing (and land), you can offshore labor one way or another (H1-bs, anyone?)
That's why in Silly Valley you can make what would be awesome money in most parts of the country and yet live pay check to pay check.
And that's why we're becoming a renters society.
Yeah....that seems to be a stickler in this country: many folks base a person's value on their ability to produce, IQ, and wealth (hence why Eric Trump is "worth" more than those school teachers in ....well, everywhere.)
Zuckerberg gets his ass kissed for pimping out people's data (and he'll never stop) while others get kicked in the ass for caring about the little things in life and the little people.
We have a segment of society that will literally kill to protect the unborn but when it comes to a living child's well-being, it's dog eat dog.
What a twisted fucked up society we live in.
Don't mind me; I have a great inheritance from a father that invested in defense stocks. Every time a POTUS says "bomb", I make enough to buy a low end BMW. And people kiss my ass because I got money from choosing my parents well.
I'd laugh if it weren't so pathetic.
The basic crux of the problem here is part-time employment. It's been abused and misused to an extreme that is just unimaginable.
What used to be a rare sight, a fluke, a unicorn in the overall job market, the part-time job. The paper-boy route for the aspiring teenager. Or the babysitting gig for the stay-at-home mom.
Someone took this and ran into hell with in it and dragged us all along for a painful experience that we're currently living through. Part-time was never supposed to be a career choice. It was never supposed to be the only thing you could find. It was a stop-gap, a place for the teenager or young adult. Now it's become THE JOB MARKET. Fulltime employment is hard to come by now.
Why? Well, because part-time employees are cheaper. You don't have to pay benefits, or retirement plans for part-time employees. It's supposed to be a temporary job after all, not your career. But now, it is. The part-time job has metamorphosed into the mechanism by which the employer is abusing the employee. When they realized the gold-mine of cheap labor they had with the part-time employee, they did any good business person would do. They got rid of the expensive full-time employees and just hired a few more part-timers to fill the gaps.
Now employers are taking it a step further. Our employees, they're not employees at all. At least on paper. We pay them as contractors and as such, we're not subject to ANY employer/employee rules at all. Even cheaper. Nice. Another win for the top. Yay?
The race to the bottom is making no winners except for those at the very top. And you jerkoffs who come in here and scream personal rights about part-time or 'gig employment', you can just go take a flying leap. Your kind landed us in this awful situation, and I don't think you have any right to say anything anymore. The part-time job needs to be restored to a temporary thing, not the new normal. An awful lot of people died, spent time in jails, or detention camps, to win the rights we have as employees and I think it's pretty fucking selfish for some of our population to sell that out for their own selfish reasons.