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California passes bill that classifies gig economy workers as employees

nytimes.com

21–30 of 754 posts

Re: California passes bill that classifies gig economy workers as employees

#21
What this means: much more expensive Uber/Lyft rides which in turn means fewer riders, and thus, fewer drivers out on the road and longer wait times.

The labor market is a complicated thing, much more complicated than just supply and demand. But these types of controls are often not the right tool for the problem.

Re: California passes bill that classifies gig economy workers as employees

#24
post #19

These "gig" companies are all unprofitable. Their current business models are consumer-friendly as they try to capture market share, so people mostly love them. But they are not sustainable, the prices will eventually have to go up or become a worse deal in some other way. They are just hoping to use all that cash to stumble into some kind of monopoly or lock-in that eventually removes customer choice. They are not g…

The funny thing is that the incumbents have largely enjoyed the monopoly and “lock-in” you described because their position was legislated. Services like Lyft and Uber were just so much better they couldn’t be stopped. Now this is just an attempt to legislate back the status quo.

Re: California passes bill that classifies gig economy workers as employees

#25
They're calling that "Remaking the Gig Economy"? Making Uber and Lyft drivers into employees? What a sham.

For 10 years I ran my own consultancy. Every new engagement was a new "job" where I could negotiate the rules of engagement however I deemed fit. Usually lasting no more than 5 days each. Every new month for 10 years I'd think: "this is it, it's over; I have no work scheduled for next month, I'm going to have to give up and get a real job." But somehow the work always rolled in, and I did really well. By the end I was billing over $300/hr, and I worked when and where I saw fit. As far as "gig workers" go, I was about as successful as you can possibly be.

And yet my wife had to work a Real Job at a Real Company because I couldn't buy reasonable health insurance for any price. Any price at all. So I spun down my company and got a real job. The Gig Economy is an utter poopshow; not even at the very top is it sustainable.

Making Uber's bottom-of-the-barrel jobs slightly less abysmal doesn't do crap for the Gig Economy. Driving for Uber isn't a Gig. You're not negotiating your rate on each pickup. It's a carefully managed relationship with the same company each time, who pays for your service on a recurring and predictable fee-for-work basis. It's a job.

Fixing the Gig Economy means making it possible for people to make a living without the shelter of an employer. And making Uber and Lift into real employers doesn't fix it. It's not even related.

Re: California passes bill that classifies gig economy workers as employees

#26
post #19

These "gig" companies are all unprofitable. Their current business models are consumer-friendly as they try to capture market share, so people mostly love them. But they are not sustainable, the prices will eventually have to go up or become a worse deal in some other way. They are just hoping to use all that cash to stumble into some kind of monopoly or lock-in that eventually removes customer choice. They are not g…

Killing Uber and Lyft outright means bringing back the taxi industry, which isn't better for anyone except the cab companies. The biggest benefit of ride sharing for me isn't that it's cheap: it's that I don't have to awkwardly assert my legal right to use a credit card every single time I ride. I'm fine with paying more to ensure drivers are earning a living wage.

Re: California passes bill that classifies gig economy workers as employees

#27
Workers have no choice but to get W2 status to get health care insurance, retirement compensation, etc.

And they fix it by simply moving them as FT employees, because to the State of California that's the easiest thing they can do. Single-payer free healthcare for all - which is the right thing to do is too much for the State.

This is just how bad the State of California is being run.

Re: California passes bill that classifies gig economy workers as employees

#28
post #25

They're calling that "Remaking the Gig Economy"? Making Uber and Lyft drivers into employees? What a sham. For 10 years I ran my own consultancy. Every new engagement was a new "job" where I could negotiate the rules of engagement however I deemed fit. Usually lasting no more than 5 days each. Every new month for 10 years I'd think: "this is it, it's over; I have no work scheduled for next month, I'm going to have to…

Your post makes it sound like the gig economy is actually unworkable right now, so the right solution, at least in the short term while we don't have an answer to problem of how to make it workable, would be to make those 'jobs' actual jobs with real benefits.

Re: California passes bill that classifies gig economy workers as employees

#29
post #22

Does anyone know how this will effect Google contractors? Seems like they'd have to make them employees under this ABC test.

Most Google contractors are already employees, just employees of some vendor or contracting firm instead of Google itself. I don't think the ABC test prohibits that kind of arrangement.

Re: California passes bill that classifies gig economy workers as employees

#30
post #22

Does anyone know how this will effect Google contractors? Seems like they'd have to make them employees under this ABC test.

I think most of those contractors are full time employees, just not of google.

Generally they work for the staffing company as full time employees, which then places them at google

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