In April, the NLRB and the DOL both revealed their stance that Uber drivers should be classified as independent contractors. Last month, the NLRB released a memorandum that outlines their reasoning.
While there are 10 qualitative factors when determining contractor status, the NLRB places the most emphasis, in the case of Uber at least, on just two: “level of control by the company over the worker and how the workers are paid in relation to the company.”
Meanwhile, California has passed its own bill that applies a three-part test, called the ABC test, when determining employer status. “To be a true independent contractor, it says, a worker must be free from a company’s control, doing work not central to the company’s business, and have an independent business in that trade.” The bill still needs Senate approval to go into effect.
In New York, lawmakers just proposed the “Dependent Worker Act,” which isn’t so much trying to get more independent contractors classified as employees, but rather to provide more benefits to those who work within the gig economy. Click here for details.
The gig economy isn’t going anywhere. In fact, IRS reporting shows that at least 11.8% of US workers are now participating in this kind of part-time work, with that number on a steady incline.