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I was really surprised by the 3rd requirement of the law to qualify as a contractor. Recall, the new law says that you can be counted as a contractor (instead
by supernova87a 6y ago
I was really surprised by the 3rd requirement of the law to qualify as a contractor. Recall, the new law says that you can be counted as a contractor (instead of an employee) only if all 3 conditions are met [1]:
-- Are free from control of the company in how the job is executed
-- Perform work outside the company's normal line of business
-- Are customarily engaged in this work anyway as an independent worker
This last condition is really unreasonable I think. Basically someone can only be counted as a contractor if they already do that kind of work as their primary employment. This basically forecloses anyone from casually offering their time as a driver, even if that's a perfectly efficient and reasonable thing for people to do.
If I were cynical, I would say that this is a concession to taxi / labor lobbies to protect their wages. Which I do not support.
Strange how Sacramento representatives, in trying to fix certain failings of current laws, always try to insert something extra like this while they do it.
[1] https://www.dir.ca.gov/dlse/faq_independentcontractor.htm https://www.dir.ca.gov/dlse/faq_independentcontractor.htm
- dmode 6y agoI don't think the third pillar is a problem. You can claim you customarily engaging in driving as a work. The primary problem Uber and Lyft are running into is #2. The courts think that drivers perform work within the company's normal line of business, while Uber and Lyft believe they are a technology marketplace and not a transportation company.
- supernova87a 6y agoWell, on #2 I agreed with the court's analysis -- at least in how Lyft/Uber are operating now. These companies would not exist if not for being in the transportation business. It is a real stretch to divorce them from the aspect of cars driving -- that is their very business. On #3, so companies would just ask the people driving whether "this is your customary line of work" and if you don't answer right, you're not allowed to drive? Or would there be some independent way this would be verified? Or is it up to the company to test how much risk they're willing to look the other way on?
- dmode 6y agoI not 100% sure, but I am wondering if #3 the burden of proof is with the contractor