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California bill could force Uber and Lyft to reclassify drivers as employees

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Re: California bill could force Uber and Lyft to reclassify drivers as employees

#101

Earlier quoted context omitted.

Uber is a marketing company. The Uber business model is nearly identical to the taxi business model it is replacing — except taxi drivers don’t have to lease or rent cars from Uber as they did with the taxi company. You also don’t have mobster-controlled “Medallions” as a means to artificially constrict supply. I think a lot of people have no idea how the old taxi business worked.. it was far worse than Uber — it was…

>...traits in very short supply in an era where people that literally sweep floors think that work is worth $15 per hour. The move to increase the minimum wage to 15 is presented by the uninformed as a cash grab by the lazy. The truth is 15 dollars just isn't much nowadays. The old often have a hard time forgetting about the nominal value and considering the actual buying power. Lets ignore the fact that minimum wage…

More concisely, while wages have stagnated wrt inflation, they’ve fallen significantly once the consumer price index (CPI) is accounted for.

Re: California bill could force Uber and Lyft to reclassify drivers as employees

#102
post #25

Earlier quoted context omitted.

Drivers who are aquainted with you may make a modest wage, and I’ll wager you know no drivers in Minneapolis nor Orlando, for their mileage rates cause their rideshare labor to be an entirely charitable endeavor.

No one forces anyone to drive for Uber or Lyft. If they don't like the money they're making, they can go work at a regular job. With sub-4% unemployment there are PLENTY of jobs out there.

Funny — unemployment only appears so low because gig workers list themselves as employed full-time. [0]

[0] https://axios.com/gig-economy-employment-economic-data-effec...

Re: California bill could force Uber and Lyft to reclassify drivers as employees

#103

Earlier quoted context omitted.

What's driving housing prices up are bad city/state level policies, not airbnb. Airbnb makes housing more effective, by housing more people for longer periods of time. Housing utilization goes up with Airbnb, not down.

I have left my house empty every time I have stayed in an AirBnB. Anecdotal? Sure, but I am not the only one.

But the other side hasn't, so in your case its 50% increase in utilization (1/2 parties uses Airbnb). If you had use Airbnb, it would have been 2 more houses per 2 vacation trips.

Re: California bill could force Uber and Lyft to reclassify drivers as employees

#104
What supporters of these kind of bills don't understand is that if you increase the risks and liabilities that companies providing these jobs carry, they will stop providing these jobs.

Classifying the people working these jobs as employees increases the risks and liabilities for the platform providers.

And those claiming we'd be better off with those jobs not existing are lying to the public. It's against the worker's interest to remove any employment (or self-employment) opportunity from the job marketplace. Now of course they will accuse opponents of the bill of lying, so the public has to investigate and decide for itself.

Re: California bill could force Uber and Lyft to reclassify drivers as employees

#105
post #100

Earlier quoted context omitted.

So... Why not make contractors pay National Insurance?

They do, like all employees, but the employ er usually pays a contribution too, by insisting that workers are 'self-employed contractors' it reduces the money being paid to the NI fund. Contractor fees are somewhat assumed to include the rates necessary for a genuine contractor to pay the full NI amount, but Uber/Lyft relies on their 'contractors' not really being fully aware of that.

I’m not following....

In the US, employers pay part of some taxes, with the employees themselves responsible for the rest. Self-employed folks pick up both halves, so the government gets a similar amount of money either way.

Does this not happen in the UK? Otherwise, it seems like it would be fairly easy to audit Uber (etc) “contractors” and to collect that money.

Re: California bill could force Uber and Lyft to reclassify drivers as employees

#106
post #80

If your business requires a consistently high amount of labor hours worked and the survival of that business depends on none of those labor hours being filled by employees, I'm not sure you have a profitable (in any term: short- to long- inclusive) business model. You have a VC ponzi scheme that inevitably collapse.

What? Have you considered that most hairdressers, plumbers, construction workers are all contractors that do just this?

Re: California bill could force Uber and Lyft to reclassify drivers as employees

#107
post #100

Earlier quoted context omitted.

They do, like all employees, but the employ er usually pays a contribution too, by insisting that workers are 'self-employed contractors' it reduces the money being paid to the NI fund. Contractor fees are somewhat assumed to include the rates necessary for a genuine contractor to pay the full NI amount, but Uber/Lyft relies on their 'contractors' not really being fully aware of that.

I’m not following.... In the US, employers pay part of some taxes, with the employees themselves responsible for the rest. Self-employed folks pick up both halves, so the government gets a similar amount of money either way. Does this not happen in the UK? Otherwise, it seems like it would be fairly easy to audit Uber (etc) “contractors” and to collect that money.

> Otherwise, it seems like it would be fairly easy to audit Uber (etc) “contractors” and to collect that money.

Yes, this could, and should happen, most Uber drivers would not be correctly filing their taxes and NI contributions, almost all would likely end up with hefty fines or prison time.

Most of those drivers are going to then be pissed at Uber for not making it clear to them that as contractors they are responsible for paying NI contributions and properly filing self-employed contractor status taxes. It wouldn't be pretty, but it'd be fun.

But since Uber were simply forced to accept that their drivers are employees, and thus Uber is responsible for the 13% NI contributions, it won't happen to Uber at least.

Re: California bill could force Uber and Lyft to reclassify drivers as employees

#108
post #27

Now for a truly unpopular opinion: Uber, Lyft (on basically all other on-demand/delivery services) are making urban living qualitatively far worse on average than the benefit of extra commerce facilitated by them. They should be banned outright. Give us our streets back. Back when ride-share and on-demand/delivery services were not so ubiquitous, you could either get out and do a chore yourself or do without. For exa…

Seems like you should argue for the outright banning of cars if your argument is that cars make things too easy and have a negative environmental impact.

Re: California bill could force Uber and Lyft to reclassify drivers as employees

#109

Earlier quoted context omitted.

The law may not state it but economics does. Even the cheapest insurance plans cost 500/mo. If you drive an hour a month and earn $100 for the month, it is not cost effective to issue a full health plan for that. There is a break even point of course. But that break even point will not allow driver flexibility.

If its not legal to drive uninsured and your insurance wont cover you driving commercially why is it OK for you to drive in such a way such that if you hurt someone they are screwed because you can't pay and your insurance wont? I think most of planet earth only wants to work 1 gig or at most 2 for somewhere between 20 and 40 hours. I doubt people who want to work a tiny number of hours make up a meaningful proportio…

Uber drivers definitely have to have their own auto and liability insurance.

The benefits being discussed are health insurance.

Re: California bill could force Uber and Lyft to reclassify drivers as employees

#110

Earlier quoted context omitted.

Why would having a person classified as an employee turn it into a full time job? Like why would they hire managers and set schedules when it gives no benifit to Uber? To me this closes a loophole. As you say these people drive for Uber, uber is doing the employing. This is not like if a contracted a builder to renovate my kitchen. That is the class of employment that are real contractors.

> Why would having a person classified as an employee turn it into a full time job? I'm not too familiar with employment law, but in most governments, employees have rights and benefits that cost a company a fixed amount that a contractor doesn't.

Isn't that only Fulltime employees? When I worked part time for a grocery store, I did not get benefits like insurance. If somebody only drives for Uber 10 hours a week, don't they only qualify as a part time employee and only get those meager benefits?
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