Gig Economy Model

2487 Words 10 Pages
Ordering an Uber has become a staple for urbanites everywhere. Whether one is going to work, get groceries or chill at the beach, you always know what you are going to get when you order an Uber, a smiling courteous driver happy to take you to your next destination, however, these smiles might be in short supply as many drivers are not happy with their current situation. Many other workers in the gig economy set up can sympathize with the Uber drivers as well. Currently, most gig economy workers are classified as independent contractors rather than employees, and while that may seem trivial, being classified as an independent contractor means that you have no claim to any employment benefits. Along with the possible ramifications of unpaid …show more content…
Other companies like Shyp, a shipping company that uses regular people, decided to abandon the gig economy model all together and make all their workers paid employees. These battles being faced by gig economy companies will serve as precedent for future companies. As more and more gig economy companies pop up, it might be worthwhile into looking at other possible solutions to this issue of employee misclassification. One such solution introduced by Buscaglia is the “Dependent Contractor”, a hybrid between the independent contractor and the employee. He outlines in his paper the qualities of a dependent contractor, namely being able to reap some benefits of an employee while still being able to control scheduling and other aspects of the job. This will take a lot of the burden off the company while keeping them legally clear. Another possible solution is to implement a system where drivers start out as independent contractors, and after driving a certain amount of hours, they are then considered employees or part-time employees. This again would take away the financial strain on the company as it would only have to provide for workers who have proved to be assets to the company. As society progresses, laws have to adapt to keep up with new and emerging technology and business practices, which is why a new economics realities test should be considered. Judge Chhabria, the judge of the Cotter v. Lyft trial, said “California law defines whether workers are employees or independent contractors, and there 's a test...but the test and classification system are woefully outdated. … it seems to me, as a matter of common sense, that Lyft drivers don 't fall into the traditional understanding of [either]. They seem to fall into a third category” (Winegarner). Adding conditions that deal specifically with gig economy situations would all together avoid these legal

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