...Let's talk about that. Uber would like us to agree that one driver was disgruntled. However, something a lot more complex is happening here. Labor laws, and regulations designed to promote passenger safety, are the current focus of this story. And those are important to understand--along with the larger implications of businesses built to rely on contractors rather than employees, a loophole in employment law, going to state appeals courts to defend their business model.
It's established law that businesses can't insulate themselves from the responsibilities of employing their workers just because they prefer it that way. Uber and other on-demand service firms have snuck into a side door in that law, by acting as the marketplace where drivers and riders meet. But this case, and others like it, have the potential to result in updated regulation governing how businesses can compensate and manage the people who work for them.
The first debate of the 90s was the question of employee classification--who is exempted from overtime. Once it was resolved in court, the answer turned out to be a specific set of duties rather than a name tag saying 'assistant manager'. Then contractors replaced employees, and IRS regulation and a couple of court cases clarified the test for who is an employee vs a contractor.
Proxima B2B developed the project-based way we work to make it clear and simple: Our teams are not your employees. They are not independent contractors you compensate with 1099 tracking. Our staff work for Proxima, and we plan and carry out sales projects for companies on the grow.
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