Employee or Independent Contractor?

Could Creating A New Class Of Worker Solve The Sharing Economy’s Labor Problems?

From Fast Company, Tristan Zier discusses an alternative to categorizing workers as either employees or independent contractors.  Tristan suggests that a new category of worker — a dependent contractor — and provides some interesting ideas on how it might work and some of the implications.  He writes:

The judge in the case against Lyft in Northern California summarized the issue well: “the jury in this case will be handed a square peg and asked to choose between two round holes.”

Is the answer to create a third class of workers—perhaps somewhere in the middle? Here is what a new kind of job, the “dependent contractor,” could look like.

1: ADDITIONAL LIABILITY INSURANCE COVERAGE FOR PROVIDERS

2: LIKELY NO HEALTH INSURANCE COVERAGE FOR PROVIDERS

3: MORE ACCESS TO PROVIDERS’ DATA AND REVIEWS

4: HELP WITH COLLECTING AND REMITTING TAXES/FEES

5: MORE CLARITY AROUND TAX LIABILITIES

6: BETTER “TERMINATION OF CONTRACT” PROCEDURES

We’re witnessing a monumental shift in the labor market. Existing labor laws are outdated and don’t address the current state of work well. Technology is changing so quickly that legislation likely won’t keep up. But this technology is also improving access to work opportunities that previously weren’t available simply by sharing existing spare time or assets.

It’s tough to say what will happen in the lawsuits. Ultimately only one thing is certain, which Steve King (the go-to expert in the independent contractor research space) puts well: “The next five to seven years are going to be a great time to be a labor lawyer.”

Read the full story at Could Creating A New Class Of Worker Solve The Sharing Economy’s Labor Problems?

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