California is close to reclassifying gig economy workers as employees – It’s now headed to State Assembly and waiting for the governor’s signature.

17 comments

  1. koc77

    |Author

    The old general rule was if your employer sets your work hours and the place you do the work you are an employee.

    On the other hand, if you set your own hours and place of business you are a contractor.

  2. Spinolio

    |Author

    Oh well. Uber and Lyft were nice while they lasted. I guess we’ll go back to “am I desperate enough to try to get a cab to actually show up, not drive me miles out of the way to rack up the fare, then lie about the credit card machine being broken?” again.

  3. WhiteRaven42

    |Author

    It’s almost as if creating employment regulations causes people to seek ways around them. If only there was some magical way to butt out and stop trying to control everything.

    Government should not define the relationships between people.

  4. that_was_me_ama

    |Author

    So if I read the article correctly it’s going to become law but then companies like Uber and DoorDash have pledged multi million dollars for a ballot initiative for those companies to be exempt. And money buys votes. So in the end the companies that were targeted for this law will be exempt and the small mom and pop stores like nail salons will go out of business. Our system is broken.

  5. TheStandler

    |Author

    I used to work as a bike courier, for a company and an employer I really liked and respected. There were about 7-8 of us riders, only 5 riding a day. We worked as contractors for a while, but the ATO took issue with that (something having to do with contractors must own ‘significant assets’ in their contracting business, and a bicycle didn’t count as a significant asset – even if my bike cost more than my shithouse car.) They forced the company to pay us hourly wages, instead of per-job wages. At first, it sounded good – more consistent earnings per day, and no way for any rider to game the system in their favor, which definitely did happen.

    But it also meant that we, the workers, lost any agency we had in the work we did. Now, instead of being able to choose to work over 8 hours to chase higher paying jobs (ie anything after 3 pm paid a fair bit more, especially if they were long rides out of the city), it was a business decision – will that one job make the company enough money to justify paying your overtime? And we now needed someone to make those business decisions and dispatch us as riders accordingly, as opposed to coordinating ourselves based on what work we wanted to do. Even with raising our prices, needing to pay one more person per day – $50k whatever a year – made the business unsustainable. Now I don’t work as a bike courier any more, and all the other riders have either moved on to other things, work for one of the huge companies who supplant their rider wages through their van/truck work, or work purely for themselves for a handful of clients max – as opposed to the large number of clients we used to have throughout the city.

    I get why this is good for some people, but this sort of thing really ****** us over. It was too bad. I truly loved that job.

  6. dirtyuncleron69

    |Author

    The basics of this are that the employees are currently misclassified. The actual text is [here](https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=201920200AB5) but the breakdown is:

    >2750.3. (a) (1) For purposes of the provisions of this code and the Unemployment Insurance Code, and for the wage orders of the Industrial Welfare Commission, a person providing labor or services for remuneration shall be considered an employee rather than an independent contractor unless the hiring entity demonstrates that all of the following conditions are satisfied:

    Meaning employers need to prove the following to classify workers as contractors:

    >(A) The person is free from the control and direction of the hiring entity in connection with the performance of the work, both under the contract for the performance of the work and in fact.

    >(B) The person performs work that is outside the usual course of the hiring entity’s business.

    >(C) The person is customarily engaged in an independently established trade, occupation, or business of the same nature as that involved in the work performed.

    I think the biggest change is (B) that the company can’t have a business model centered around having all employees by 1099s to undercut other companies that have established business with actual employees.

  7. juloxx

    |Author

    I read somewhere this will be bad for musicians and artists, but am too stupid to verbalize why. If anyone wants to explain for me, that would be awesome

  8. glopezwach

    |Author

    This problem its spread all over the place. Many workers from all sectors are paid as contractors and not employees, that of course benefits the employer’s that avoid paying taxes and benefits, and leave the employee without any umbrella when they get fired, got medical issues etc. Plus when they do taxes with a 1099 instead of a W2 the employee got to pay what the company didnt pay to uncle Sam. It’s an unfair business practice known by all politicians that affects million of low income families, it’s legal and should end yesterday.

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