Employment Classification in the Gig Economy
The employment classification in the gig economy, which has seen increased popularity because of firms like Uber and Lyft, is covered in the article Gigs with Benefits by J. Surowiecki for The New Yorker. Several variables are considered when deciding whether a person is an employee or an independent contractor (IC). Control is a crucial factor: if the employer controls the job and how it is done, the person is an employee; if the individual controls the work and how it is done, the person is an independent contractor (IC).
Factors Determining Employee vs. Independent Contractor Status
Factors like the kind of work being done, how long it lasts, how much is being paid, and how much skill is needed to do the job determine the employment status. All of these variables are considered when choosing a person’s job status. According to the article, independent contractors should be categorized as working for Uber and other “gig” companies (Surowiecki, 2015). These jobs are not equivalent to regular jobs because they require more independence and flexibility. As a result, the employer has less influence over the workplace, and employees have more freedom to choose their working hours and methods. As a result, the employee does not have the same control over the worker’s task, and the worker has more power over the job.
California Proposition 22 and Its Impact on App-Based Businesses
California Proposition 22 was a ballot initiative that attempted to exempt app-based businesses like Uber and Lyft from classifying their drivers as employees. If approved, the proposal would have allowed these businesses to keep classifying their drivers as independent contractors and spare them the expense of paying them minimum wage and health insurance (Surowiecki, 2015). Since the proposal was successful, California app-based businesses no longer need to designate their drivers as employees. For companies like Uber and Lyft, this has been viewed as a massive success because it enables them to continue operating without giving perks to their drivers.
Reference
Surowiecki, J. (2015). Are Uber drivers employees?. The New Yorker. Web.