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California law tries to help independent contractors, but what’s really happening?

(BUSINESS NEWS) California is trying to make Uber and Lyft turn their independent contractors into employees, but what does this mean for the state’s freelancers?

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In a serious blow to freelancers across the state, California has recently made a move to force Uber and Lyft — the popular rideshare companies that act as an alternative to taxicabs — to recognize their drivers as employees. As it stands, California is the country’s biggest market for these two industries, and these new measures are calling into question the future of the state’s gig economy.

Back in January, California introduced a new bill (the controversial AB-5), which made it harder for companies like Uber and Lyft (as well as other courier-type businesses, such as DoorDash and Grubhub) to categorize their drivers as independent contractors. The bill arose out of protests from these drivers, who are not given certain privileges that waged employees receive. Their demands included healthcare, overtime, and unemployment…all things that are fairly standard for employees, but not available to independent contractors.

Unfortunately, this bill not only didn’t accomplish what it had set out to do, but it also completely devastated the freelance industry in California. Immediately gig workers and independent contractors across the state found their employment status called into question, with many out-of-state companies firing their freelancers out of fears that they’d have to categorize them as employees, as well. Other industries in the state released a number of their independent contractors, making the remaining ones work twice as hard to pick up the slack from fallout left behind by this bill.

While AB-5 still hasn’t taken its final form (and already amendments to this bill have been made to reflect the feedback from the state’s independent contractors), that hasn’t stopped Uber and Lyft from pushing back on it. In response to this new measure, they’re trying to introduce their own bill, citing that it would better serve the needs of their drivers. In a statement, Uber noted that their drivers prefer the independence afforded to them by their contractor status, and if this bill passed, some 158,000 drivers would lose their jobs.

Proponents of the bill, on the other hand, cite the potential benefits of it. They remark that passing it can help increase efficiency in the major cities, reduce traffic congestion, and while it can possibly lead to higher prices on these rideshare apps, it may also help dramatically decrease pollution, as well.

Both Lyft and Uber have rallied together to present their own ballot initiative, bringing their own money (to the tune of some $90 million) to the table to counter this measure. Instead of forcing these companies to turn their drivers into employees, they argue that the measure should be voted upon by constituents. These new policies should help appeal to the displaced drivers, providing them with benefits such as a minimum of 120% of minimum wage, an added $0.30 per mile for gas and wear and tear, automobile and liability insurance, and protection against discrimination.

As far as the existing freelancers and independent contractors in California, the jury is still out. Many of them have been left without a means to earn an income and are currently struggling in today’s coronavirus-impacted economy to find a source of sustainable income. Many companies are too anxious to take on the risk of accidentally finding themselves with an employee on their hands, making it all the more difficult for these freelancers to secure work.

If California Attorney General Xavier Becerra’s move to force the state to classify these gig workers as employees actually goes through, it will undoubtedly have a lasting impact on the state’s freelancers, gig workers, and independent contractors. It’s too early to tell what this impact will be, though. Perhaps it will be better for the freelancers in the state. It’s evident that many of them do want this bill to pass, but is bypassing a vote and moving directly to legislation the ideal move? Sadly, for the number of freelancers who want to retain their autonomy, their voices have ultimately been drowned out by the more vocal dissenters.

Karyl is a Southern transplant, now living on the Central Coast with her husband. She's proud to belong to two very handsome cats, both of which have made it very clear as to where she ranks on the social hierarchy. When she's not working as an optician, you can either find her chipping away at her next science-fiction novel or training for an upcoming race. She holds an AAT in Psychology, which is just a fancy way of saying that she likes poking around inside people's brains. She's very socially awkward and has no idea how to describe herself, which is why this bio is just as dorky and weird as she is.

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Business News

Leadership versus management: What’s the difference?

(Business News) The two terms, leadership and management, are often used interchangeably, but there are substantial differences; let’s explore them.

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leadership Startups meeting led by Black woman.

Some people use the terms “leader” and “manager” interchangeably, and while there is nothing inherently wrong with this, there is still a debate regarding their similarities or differences.

Is it merely a matter of preference, or are there cut and dry differences that define each term?

Ronald E. Riggio, professor of leadership and organizational psychology at Claremont McKenna College, described what he felt to be the difference between the terms, noting the commonality in the distinction of “leadership” versus “management” was that leaders tend to engage in the “higher” functions of running an organization, while managers handle the more mundane tasks.

However, Riggio believes it is only a matter of semantics because successful and effective leaders and managers must do the same things. They must set the standard for followers and the organization, be willing to motivate and encourage, develop good working relationships with followers, be a positive role model, and motivate their team to achieve goals.

He states that there is a history explaining the difference between the two terms: business schools and “management” departments adopted the term “manager” because the prevailing view was that managers were in charge.

They were still seen as “professional workers with critical roles and responsibilities to help the organization succeed, but leadership was mostly not in the everyday vocabulary of management scholars.”

Leadership on the other hand, derived from organizational psychologists and sociologists who were interested in the various roles across all types of groups.

So, “leader” became the term to define someone who played a key role in “group decision making and setting direction and tone for the group. For psychologists, manager was a profession, not a key role in a group.”

When their research began to merge with business school settings, they brought the term “leadership” with them, but the terms continued to be used to mean different things.

The short answer, according to Riggio is no, not really; simply because leaders and managers need the same skills to be productive and respected.

This editorial was first published here in June of 2014.

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Does Raising Cane’s have the secret to combatting restaurant labor shortages?

(NEWS) Fried Chicken Franchise, Raising Cane’s, has turned to an unusual source of front-line employees during the labor shortage- Their executives!

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White paper sign with black text reading "Help Wanted."

I wouldn’t call myself a fried chicken aficionado or anything, but since chains are designed to blow up everywhere, I have experienced Raising Cane’s.

I’m pretty sure the Cane’s sauce is just barbecue mixed with ranch, but hey, when you’ve got a good idea, keep with it.

In the further pursuit of good ideas, the company has resorted to an intriguing method of boosting staff in a world where the lowest paid among us are still steadily dying of Covid, and/or choosing to peace out of jobs that they don’t find worth the infection risk.

Via Nation Restaurant News: “This is obviously a very tough time, so it was a joint idea of everybody volunteering together to go out there and be recruiters, fry cooks and cashiers —whatever it takes,” said AJ Kumaran, co-CEO and chief operating officer for the Baton Rouge, La.-based quick-service company, from a restaurant in Las Vegas, where he had deployed himself.”

The goal of this volunteer mission, which involves 250 of the 500 executives deployed working directly in service roles, is to bolster locations until 10,000 new hires can be made in both existing locations and locations planned to open.

It’s obvious that this is a bandaid move – execs exist for good reason, and in terms of sheer numbers (not to mention location and salary changes), this is hardly tenable long-term. But I can say this as someone who’s gone from retail to office, and back (and then forth…and then back again) several times – if this doesn’t keep everyone at the corporate level humble, and much more mindful of employees’ needs, nothing will.

The fast-food world is notorious for wonky schedules only going up a day before the week begins, broken promises on hours (both over and under), horrendous pay, and little to no defense of employee dignity in the face of customers with rank dispositions. With the wave of strikes (Nabisco, John Deere, IATSE) making the news, and lack of hazard pay/brutal physical attacks over mask mandates still very fresh in workers’ minds, smart companies are hipping themselves to the fact that “low level” employee acquisition and retention needs to be much more than the ‘work here or starve’ tactics that have served since the beginning of decades of wage stagnation. The best way for that fact to stay front-of-mind is to go out and live the truths behind it.

In Raising Cane’s case, the company also announced that they’re upping wages at all locations — to the tune of an actually not totally insulting $2 per hour, resulting in a starting wage of $15 and a managerial wage of $18.

Ideally, paying people more to cook, clean, and customer service all in one job will actually attract people back to fast food work. Seriously consider the fact that the people cleaning fast-food toilets are the same people making the food that goes into your mouth. The additional fact is that it’s better for everyone’s health when they’re paid enough to care about what they’re doing and stay healthy themselves.

Of course, one does also need to consider how much inflation has affected the price of goods and housing since the ‘fight for $15’ began almost a decade ago in 2012. Now, raising wages closer to the end point of multiple goods still might not be enough!

AJ Kumaran continued, “The chicken prices are through the roof. Logistics are very hard. Shipping is difficult. Simple things cups and paper napkins — everything is in shortage right now. Some are overseas suppliers and others domestic suppliers. Just in poultry alone, we have taken significant inflation.”

That’s global disruption for ya.

It remains to be seen whether this plucky move can save Raising Cane’s dark meat, but I’m very pro regardless. Send more top-earning employees into the trenches! No more executives with 0 knowledge of how the sausage sandwich gets made.

No more leading from behind.

Why not? What are ya? Chicken?

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Business News

Unify your remote team with these important conversations

(BUSINESS NEWS) More than a happy hour, consider having these poignant conversations to bring your remote team together like never before.

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Woman working in office with remote team

Cultivating a team dynamic is difficult enough without everyone’s Zoom feed freezing halfway through “happy” hour. You may not be able to bond over margaritas these days, but there are a few conversations you can have to make your team feel more supported—and more comfortable with communicating.

According to Forbes, the first conversation to have pertains to individual productivity. Ask your employees, quite simply, what their productivity indicators are. Since you can’t rely on popping into the office to see who is working on a project and who is beating their Snake score, knowing how your employees quantify productivity is the next-best thing. This may lead to a conversation about what you want to see in return, which is always helpful for your employees to know.

Another thing to discuss with your employees regards communication. Determining which avenues of communication are appropriate, which ones should be reserved for emergencies, and which ones are completely off the table is key. For example, you might find that most employees are comfortable texting each other while you prefer Slack or email updates. Setting that boundary ahead of time and making it “office” policy will help prevent strain down the road.

Finally, checking in with your employees about their expectations is also important. If you can discuss the sticky issue of who deals with what, whose job responsibilities overlap, and what each person is predominantly responsible for, you’ll negate a lot of stress later. Knowing exactly which of your employees specialize in specific areas is good for you, and it’s good for the team as a whole.

With these 3 discussions out of the way, you can turn your focus to more nebulous concepts, the first of which pertains to hiring. Loop your employees in and ask them how they would hire new talent during this time; what aspects would they look for, and how would they discern between candidates without being able to meet in-person? It may seem like a trivial conversation, but having it will serve to unify further your team—so it’s worth your time.

The last crucial conversation, per Forbes, is simple: Ask your employees what they would prioritize if they became CEOs tomorrow. There’s a lot of latitude for goofy responses here, but you’ll hear some really valuable—and potentially gut-wrenching—feedback you wouldn’t usually receive. It never hurts to know what your staff prioritize as idealists.

Unifying your staff can be difficult, but if you start with these conversations, you’ll be well on your way to a strong team during these trying times.

This story was first published in November 2020.

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