California Looking to Reclassify Independent Contractors as Employees

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California Looking to Reclassify Independent Contractors as Employees

The “gig economy” – people who work for Uber, Lyft, in similar ways – depends on independent contractors. Now California legislators are looking to change state law to reclassify most of these independent contractors as employees. They say this will lead to greater worker protection. Critics argue that it will end their work completely.

 

Under federal law, companies can contract with individuals to do work under certain circumstances, such as not having direct control over how work is done. This has allowed the flourishing of occupations in the “gig economy,” which allows people to work at jobs without meeting the traditional definition of being an “employee.”

 

Many of those who work at these jobs like this status. They say it allows them to pick and choose what jobs they do and when they do them. They like the flexibility and the lack of red tape that comes with traditional employment situations. Others, however, complain that such jobs do not offer the security and benefits of traditional jobs. They say that employers take advantage of independent contractors.

 

California legislators have listened to organized labor and others who take the latter view. The Assembly has passed legislation that would tighten rules in California for when employers can use independent contractors. The bill would narrowly limit who could work as an independent contractor.

 

Supporters of the bill argue that it will mean that employers will have to offer health and other benefits to a wider set of workers. Opponents counter that by adding more cost to hiring these workers, it will end their employment. Instead of helping independent contractors, they say, this will leave these people without work.

 

Uber, Lyft, and other companies that use independent contractors have vowed to fight this bill if it becomes law. They are sponsoring a ballot initiative that will increase protection for independent contractors while still allowing them to work. This ballot would be on the 2020 ballot.

 

Do you think that states should restrict who can work as independent contractors for companies such as Uber and Lyft?

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