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Uber and Lyft drivers have garnered media attention in recent months over surrounding their claims that they deserve the rights of employees rather than independent contractors. Both rideshare companies classify drivers’ work as independent contract jobs, claiming the drivers control their schedules and working environments. However, legal questions have been raised about whether the drivers may be entitled to more benefits.
Organizations like the Mobile Workers Alliance and Gig Workers Rising were both involved in a three-day caravan in that ended in Sacramento on August 27 to support an assembly bill that will impact independent contractors, according to theverge.com.
Cars bearing the Lyft and Uber insignias participated in the caravan that passed by Uber’s San Francisco headquarters. The proposed legislation, known as Assembly Bill 5, would clarify whether California rideshare drivers and other gig workers, should be classified as independent contractors or employees.
Employers would have to meet certain requirements in order to classify workers as independent contractors. Independent contractors have fewer rights under the law given their status. In an effort to save money and limit a company’s liability and responsibilities, some businesses have been accused of misclassifying these workers
The proposed bill would formalize last year’s state Supreme Court decision which found that employers have to meet a three-step test to pay employees as contractors.
According to techcrunch.com, employers would have to show that the work is outside the regular scope of the business; that the worker is independently established in that trade; and that the worker is free from employer control.
According to claims from the Uber and Lyft drivers in independent contract jobs, their work is controlled by their employer this should allow them to be classified as employees instead. The drivers working independent contractor jobs also say that their work — driving customers — is key to the company’s overall functioning.
Since the drivers are currently classified as independent contractors, they are not entitled to numerous benefits, such as unemployment insurance, workers’ compensation, family leave, paid sick days, or minimum wage and overtime requirements. If they were to be reclassified, these drivers would be eligible to receive these protections and Uber and Lyft would have to classify other drivers in the same way.
Drivers have lodged complaints with Uber and Lyft about their classification as independent contract jobs as well as recent changes the company made with regard to how it pays its drivers. Some drivers say the rate of pay has been reduced to the point that they have to sleep in their vehicles. Others complain they’ve been pressured to provide more amenities to riders, such as candy, water, and phone chargers, adding in other costs for the driver amidst pay cuts.
Uber and Lyft aren’t the only companies that have come up in the discussion about independent contract jobs. House cleaners, truck drivers, and childcare workers have all raised similar concerns about the manner in which they work and receive pay. The rise of the gig economy has added to the discussion about companies taking advantage of independent contractor status.
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