Discussion Prompt: The gig economy has exploded over the past five years. Independent workers who work by the “gig” or by assignment and are paid by assignment. Uber and Lyft drivers come first to mind. They are paid by the passenger and are not considered employees of the companies. Long-haul truck drivers, package and food delivery drivers, rental services, writers, musicians, and graphic artists also fall into this group. These workers are paid by the assignment and typically will work for multiple employers and work only when they want to work.
In 2019, California enacted a law (AB 5) that greatly restricts the ability of companies to classify gig workers as independent contractors. The bill requires these workers to be classified as employees and eligible for state mandated employment benefits (which are some of the most expensive in the nation). The costs of these benefits are mostly paid by the employer.
AB 5 went into effect on January 1, 2020. Many gig workers found themselves out of work after the law was implemented (and this was pre-coronavirus).
Uber. Lyft, DoorDash, Instacart, and Postmates sponsored a statewide referendum, Prop 22. to exempt ride sharing and delivery companies from the statute. The referendum was approved by 59% of the vote in November 2020.
Those in favor of the law argue that these workers are being exploited and denied benefits available to non-gig employees.
Those opposed to the law argue that these workers can make their own decisions as to the best working environment for themselves. They are trading off benefits for the flexibility to work when they want to work and for whom they want to work.
Employers argue that they can’t bring many of these workers on as regular employees because they need the flexibility of staffing when the work demand warrants increased personnel.
First:
Discuss:
(1) what you do you think about AB5 if you were a gig worker?
(2) What do you think about the law if you were an employer?
