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Uber and Lyft ordered by California judge to classify drivers as employees

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Re: Uber and Lyft ordered by California judge to classify drivers as employees

#91
post #7

It strikes me that these articles are always biased in the direction of the benefits of being an employee. I have several friends that actively choose to be contractors because they prefer the (legally protected) flexibility to decide their own hours, among other things. It's a personal decision, and there are upsides and downsides in both directions. Sure - some (non-insignificant) portion of Uber and Lyft drivers w…

I thought flextime is totally a thing.

Re: Uber and Lyft ordered by California judge to classify drivers as employees

#92
post #57

So I think the biggest question here is whether, as an employee, Uber/Lyft can set hours for a driver. Some specific implications: * Will we see employees (drivers) get a say in their shifts? An employee can be asked to work a 3AM - 9AM shift for example. * Can not arriving to shifts on time be grounds for dismissal? * Can refusing a shift be grounds for dismissal? * Can incurring unapproved overtime be grounds for d…

In a lot of ways this gives them more power over drivers than they had before.

Re: Uber and Lyft ordered by California judge to classify drivers as employees

#93
post #7

It strikes me that these articles are always biased in the direction of the benefits of being an employee. I have several friends that actively choose to be contractors because they prefer the (legally protected) flexibility to decide their own hours, among other things. It's a personal decision, and there are upsides and downsides in both directions. Sure - some (non-insignificant) portion of Uber and Lyft drivers w…

Your friends could still be considered contractors under this law. One of the provisions that allows you to remain a contractor is that "the worker is customarily engaged in an independently established trade, occupation, or business of the same nature as that involved in the work performed." The other prongs of the test have long been part of IRS law.

I work as a 1099 contractor doing software engineering under my own LLC consulting business. This is valid under CA law. The law is meant to protect people who are unfairly classified as contractors outside of a trade, not restrict choice of those of us already working in this capacity.

Re: Uber and Lyft ordered by California judge to classify drivers as employees

#94

Earlier quoted context omitted.

Why not? They currently do just that...

> Why not? They currently do just that... Right now they do that for contractors. After the drivers are reclassified as employees, things might change.

Things might also stay the same. There's inertia in the current system and the drivers clearly value their flexibility. Why would things change?

Re: Uber and Lyft ordered by California judge to classify drivers as employees

#95
post #7

It strikes me that these articles are always biased in the direction of the benefits of being an employee. I have several friends that actively choose to be contractors because they prefer the (legally protected) flexibility to decide their own hours, among other things. It's a personal decision, and there are upsides and downsides in both directions. Sure - some (non-insignificant) portion of Uber and Lyft drivers w…

Some things, like not being able to set their own rates, meant drivers were never contractors, even if they wanted the perks of contracting (e.g, choose your own hours). Saying 'I wish to be a contractor' isn't legally sufficient: the agreement needs to permit setting rates.

Ome might as well say that "Some things, like being able to work for Uber's competitors, meant that drivers were never employees."

This is a fuzzy line.

Re: Uber and Lyft ordered by California judge to classify drivers as employees

#96
post #84

Earlier quoted context omitted.

Some things, like not being able to set their own rates, meant drivers were never contractors, even if they wanted the perks of contracting (e.g, choose your own hours). Saying 'I wish to be a contractor' isn't legally sufficient: the agreement needs to permit setting rates.

Not all contractors set their own rates. Sometimes they bid on an already published rate. Which is what happens here. Uber/Lyft tell you what you will make before the ride starts. If you accept, you just set your own rate.

except uber/lyft will remove you from the platform if you decline too many rides, thereby only giving the illusion of choice.

Re: Uber and Lyft ordered by California judge to classify drivers as employees

#97
What I'm guessing will happen if Uber/Lyft are forced to treat drivers as employees is that those driving full-time will be hired and everyone else will be let go. The employees will lose some control over what hours they work and may be forced to sign non-compete agreements (not sure if that would fly in CA).

What I don't understand is why Uber/Lyft don't just allow drivers to set their own prices. Whatever their pricing algorithm is it cannot possibly be better than an efficient market of riders and drivers bidding on trips.

Re: Uber and Lyft ordered by California judge to classify drivers as employees

#98
post #7

It strikes me that these articles are always biased in the direction of the benefits of being an employee. I have several friends that actively choose to be contractors because they prefer the (legally protected) flexibility to decide their own hours, among other things. It's a personal decision, and there are upsides and downsides in both directions. Sure - some (non-insignificant) portion of Uber and Lyft drivers w…

These articles are written by people who have incentive to write such articles. Those who are contractors do not bother running around asking journalists to write stories about how much they enjoy being independent they just focus on driving Uber. A small % of people on other hand try to create a lobby for this sort of things and the opportunist politicians will use this to arm twist Uber and Lyft to seek rent. This creates a need for journalists who write these biased stories.

Re: Uber and Lyft ordered by California judge to classify drivers as employees

#99
post #30
post #13

Earlier quoted context omitted.

Regulation, in general, exists primarily as a response to exploitation. If drivers felt they were getting paid equitably, had fair dispute resolution, had access to benefits, etc., there wouldn't be a need for this.

The parent's point brings up the fact that the medallion system wasn't particularly beneficial to all drivers (or riders); medallions are good for medallion-holders, which are usually taxi companies.

Has anyone suggested the solution to this is to make another medallion system? It seems like the OP was putting the cart before the horse.

Re: Uber and Lyft ordered by California judge to classify drivers as employees

#100
post #7

It strikes me that these articles are always biased in the direction of the benefits of being an employee. I have several friends that actively choose to be contractors because they prefer the (legally protected) flexibility to decide their own hours, among other things. It's a personal decision, and there are upsides and downsides in both directions. Sure - some (non-insignificant) portion of Uber and Lyft drivers w…

Some things, like not being able to set their own rates, meant drivers were never contractors, even if they wanted the perks of contracting (e.g, choose your own hours). Saying 'I wish to be a contractor' isn't legally sufficient: the agreement needs to permit setting rates.

I get what you're saying, but I don't think "setting their own rates" has anything to do with it. Any driver would be able to set their own rates by going at it alone, completely independent from a ride share company. They would create their own service and charge what they want.

However, because the drivers choose to participate in the Uber/Lyft marketplace and benefit from the network affects that they have created, it follows that Uber/Lyft would have a say in the cost of goods sold in that marketplace. Just because the drivers can't set their own rates doesn't mean they aren't independent contractors.

If I hire you to mow my lawn, we mutually come to an agreement of what time and price you would perform the service. Just because you want to work for $100 / hour doesn't mean I'm willing to pay that. And because I'm only willing to pay a certain price only for your services doesn't make you an employee.

I think it's that simple. Uber/Lyft have a price they are willing to pay for services. They even allow their drivers to pick their own schedule (unlike my lawn service example). Drivers are not setting the price directly with the customers, they are getting paid by Uber/Lyft, but that doesn't make them employees.

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