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Limo Firm To Uber: You Misclassify Your Drivers As Contractors, Which Is Unfair (arstechnica.com)
An anonymous reader quotes a report from Ars Technica: A Southern California limousine company sued Uber in federal court earlier this week, alleging violations of state unfair-competition laws. While a company suing Uber is not new, the proposed class-action lawsuit appears to rely on a recently decided California Supreme Court decision that makes it more difficult for companies to unilaterally declare their workers as contractors, which effectively deprives them of benefits that they would otherwise receive as employees.
In that case, known as Dynamex, the court came up with a three-part test to figure out whether companies can assert contractor status or not. The new case is called Diva Limousine v. Uber. Some legal experts say that the earlier decision in Dynamex may bolster an argument in this new case around unfair competition that has previously been difficult to win on in federal court. In short, Diva Limousine just might succeed where other federal lawsuits have failed.
In that case, known as Dynamex, the court came up with a three-part test to figure out whether companies can assert contractor status or not. The new case is called Diva Limousine v. Uber. Some legal experts say that the earlier decision in Dynamex may bolster an argument in this new case around unfair competition that has previously been difficult to win on in federal court. In short, Diva Limousine just might succeed where other federal lawsuits have failed.
It also had the effect of ending many tech sole proprietorships. Whereas at one time I could simply bill the client for my itemized time, pay quarterly taxes, and the client would send me a 1099 each year, now the IRS scrutinizes it and companies shy away from doing this. Sure I could start an S corp but that makes tax filing more difficult that necessary and it makes negotiating contracts and T&C more difficult. I was happy with the prior arrangement.
But thanks to rulings like these and increased Obama administration oversight, I got screwed out of a sweet deal and now go through a contract company who charges a multiplier on my time. My client now pays more than necessary to avoid a tax fight that I am being misused even though it is my choice to be a contractor.
This big brother act pretending to protect workers is a sham. It is about making people wage slaves so taxes are paid each pay period instead of quarterly or yearly. They do not give a shit about workers at all if it does nothing to increase their power or tax revenues.