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Uber and Lyft face the music as employee ruling is upheld

(BUSINESS NEWS) The battle for Uber and Lyft drivers’ status continues, and despite company protests, the official ruling has been upheld.

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Interior of Uber and Lyft rideshare looking out on palm trees

A gig economy has its pros and cons. For anyone who has ever been an independent contractor, done freelance work, or worked for companies like Uber, Lyft, and DoorDash, the pros are clear – you get to work when you want, where you want and how much you want. Flexibility and gigs go hand in hand.

And the cons? Well, those are a little more complex. Without a W2 linking you directly to the company, you as an independent contractor don’t receive the same rights and perks that your 9-5 employee friends might. For example, your employer is not required to provide a healthcare option for you. You are also not entitled to earned time off or minimum wage.

So which is better?

The gig economy conundrum has made its way all the way to an appellate court in California last week. The ruling was that Uber and Lyft must classify their drivers as employees.

Back in May, Attorney General Xavier Becerra and city attorneys from L.A., San Diego and San Francisco brought forth a lawsuit that argues Uber and Lyft gain an unfair, unlawful competitive advantage by not classifying their workers as W2s.

Uber and Lyft responded to the suit, stating that if they were to reclassify their drivers as employees, their companies would be irreparably harmed – though the judge in last week’s ruling negated that claim, stating that neither company would suffer any “grave or irreparable harm by being prohibited from violating the law” and also that the financial burden of converting workers to employees “do[es] not rise to the level of irreparable harm.” Essentially, the judge called their BS.

Additionally, according to the judge, there is nothing that would prevent Uber and Lyft from offering flexibility and independence to their drivers – and they have had plenty of time to transition their drivers from independent contractors to employees (the gig worker bill that spurred this lawsuit was decided in 2018). Seems fair to me!

However, there is an oppositional proposition on the ballot that muddies the waters. Proposition 22, if passed, is a measure that would keep rideshare drivers and delivery workers classified as independent contractors, meaning that those workers from Uber and Lyft would be exempt from the new state law that classifies them as W-2 employees. And you might be surprised to know how many of the app-based rideshare workers are in favor of Prop 22!

In a class-action lawsuit, Uber has been accused of encouraging drivers and delivery workers to support Prop 22 via the company’s driver-scheduling app. It appears, unfortunately, that Uber is manipulating its workforce by wrongly hanging their jobs over their heads.

On this matter, Gig Workers Rising stated: “If Uber and Lyft are successful in passing Prop. 22 and undo the will of the people, they will inspire countless other corporations to adapt their business models and misclassify workers in order to further enrich the wealthy few at the expense of their workforce.”

Ultimately, the fate of California Uber and Lyft driver’s in still in question. It’s unclear if the question we should be asking is, will Lyft drivers have proper healthcare through their jobs or will they have jobs at all. All of this is occurring at a time where millions are jobless and 158,000 individuals sought unemployment support this week due to COVID-19 layoffs.

Personally, I have little sympathy for tech-giants that rake in billions off the backs of the exploited working-class. If the CEO of Uber is an ostentatious billionaire, then his employees should have health insurance. Clear and simple.

The scariest part of the gig economy is that workers have become increasingly happy to work for a company that gives them little to no benefits. More companies are dissolving or combining positions so that they can further bypass their responsibilities to their employees. Let us not be fooled: The dispute over whether or not to make Uber and Lyft workers W2 employees does not affect the health of the companies themselves. What it will affect is how fat the bonuses will be the big guys at the top, and that’s exactly why the companies are so adverse to the ruling. They’d rather their workers suffer than lose a single dime.

Anaïs DerSimonian is a writer, filmmaker, and educator interested in media, culture and the arts. She is Clark University Alumni with a degree in Culture Studies and Screen Studies. She has produced various documentary and narrative projects, including a profile on an NGO in Yerevan, Armenia that provides micro-loans to cottage industries and entrepreneurs based in rural regions to help create jobs, self-sufficiency, and to stimulate the post-Soviet economy. She is currently based in Boston. Besides filmmaking, Anaïs enjoys reading good fiction and watching sketch and stand-up comedy.

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1 Comment

  1. independent contractor

    November 12, 2020 at 9:18 am

    Very interesting to read, especially in the immediate aftermath of the election. I wonder how California’s Prop 22 will affect this — and the folks who do the taxes of gig workers all over the country

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Business News

How to stop reeking of desperation when you job hunt

(CAREER) Hunting for a job can come with infinite pressures and rejection, sometimes you just want it to be over – here’s how to avoid reeking of desperation.

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desperation when job hunting

Whether you were one of the millions of people who quit their job this year in The Great Resignation or you’ve been unemployed since the pandemic began, when you’re looking for work, it can feel hopeless after a while. Just like that student in class who raises their hand at every question, you don’t want to come across as desperate, “pick me, pick me!” Money might be tight. You want to be eager, but you don’t want to be so anxious that you sabotage your job search.

Right now, job seekers have the upper hand, but you want to show off your skills and professionalism, not your neediness.

5 ways you come across as overly desperate for a job:

  1. Applying for multiple positions at the same company. Employers want you to be a fit for a particular job. Instead, tell the hiring manager that you’re open to other positions that might be a good fit.
  2. Checking in with the hiring manager too much. Follow up after an interview, but don’t keep checking in. If they have news, they’ll share it.
  3. Talking about how much you need a job. Don’t bring up your personal issues in an interview. Stay focused on why you are the best person for the job.
  4. Being willing to accept any offer. You should negotiate and go to bat for yourself when you get an offer. Explain why you’re worth more money because you probably are.
  5. Forgetting to ask questions about the bigger picture. You don’t want to be so eager to impress that you don’t think about the company culture and perks. You might be desperate, but getting into a job that doesn’t fit your needs and personality won’t help your situation.

Desperation can make you appear to be in the clearance bin at the store. Sure, you may get something for a great price, but will you actually be able to fully use it when you get it home? As a job seeker, you want to be the premium brand on the shelf. Maybe not every buyer (employer) can appreciate you or even afford you, but when the right one comes along, it’s a good fit.

Employers want team members who will be assets for their company. Your job search needs to start with a strong resume and impressive cover letter. Instead of going for quantity, choose job openings for quality, where you can bring something to the table for the company.

Ask a Manager’s Alison Green has some great resources for getting a job, including a free guide to preparing for interviews. Practice interviewing. Make a great first impression. Know that there is a job out there for you.

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Business News

Study: Employers are inadvertently punishing women that suffer from Endo

(BUSINESS NEWS) A new study reveals the widespread impact of Endo (Endometriosis) in the workforce as well as the entire economy. Change must be made. Quickly.

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endo endometriosis pain

Women still face many barriers in their career. It’s been more than half a century since federal law addressed gender discrimination in the workplace, but it still occurs. Whether it’s lack of access to training, an inability to speak up, or pay inequality, it’s all wrong. Sadly, a new study identifies another potential barrier to a woman’s career path – endometriosis.

What is endometriosis?

The Office on Women’s Health (OWH) reports that “endometriosis happens when tissue similar to the lining of the uterus (womb) grows outside the uterus.”

Endo, as its often called, causes varying levels of pain, often chronic pain in the lower back and pelvis. The tissue outside the uterus grows in areas where it can cause even more problems by blocking fallopian tubes and forming scar tissue. There is no cure, but there are some treatment options that can work.

Endo affects about 11% of American women who are ages 15 to 44. Despite the fact that the American Journal of Obstetrics & Gynecology describes endometriosis as “nothing short of a public health emergency,” data suggests that about 60% of endo cases go undiagnosed.

I repeat: 60% of endo cases go undiagnosed.

More than 6 million American women are living with the symptoms of endo without knowing the cause or having the capability to manage their symptoms.

Endometriosis was once considered a career woman’s disease, but a two-year-long study from Finland shows that the disease shapes a woman’s career, not the other way around.

Women with endo take 10 or more sick days than women without endo. They also use more disability days. Other studies support these findings. A 2011 analysis reported that women with endo could lose almost 11 hours of work each week because their endo made it difficult to complete tasks. One US study estimated that women with endo experience more sick days each year, up to 20.

These women often have a lower annual salary and slower salary growth.

How can employers address endometriosis in the workplace?

It’s difficult enough to discuss any type of health problem at work, let alone one that relates to menstruation. Employers have a big problem just dealing with short-term illnesses. It’s hard when a key employee is out for one or two weeks from a surgery. Long-term chronic illnesses, especially those that are invisible, are challenging in the workplace.

Most workplace cultures aren’t designed for people with chronic conditions or disabilities.

It’s going to take a major shift in thinking to deal with endometriosis in the workplace.

Endo isn’t painful period cramps. It’s a serious condition without a cure. Employees who are dealing with endo may be battling intense pain or fatigue. Yes, work needs to get done, but when people are living with a chronic condition, they need accommodations.

Endometriosis may be a woman’s disease, but it does impact the entire economy. One study found that endo had a similar economic burden to that of heart disease or diabetes. Most employers would not think twice about a man who needed extra time to deal with coronary disease, but women often don’t get that consideration, regardless of the condition.

Women with endo aren’t incapable or shirking their duties. They may just need to deal with their pain to stay focused at work. Let’s drop the stigma and help accommodate women who deal with endo.

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Business News

Everyone should have an interview escape plan

(BUSINESS NEWS) A job interview should be a place to ask about qualifications but sometimes things can go south – here’s how to escape when they do.

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interview from hell

“So, why did you move from Utah to Austin?” the interviewer asked over the phone.

The question felt a little out of place in the job interview, but I gave my standard answer about wanting a fresh scene. I’d just graduated college and was looking to break into the Austin market. But the interviewer wasn’t done.

“But why Austin?” he insisted, “There can’t be that many Mormons here.”

My stomach curled. This was a job interview – I’d expected to discuss my qualifications for the position and express my interest in the company. Instead, I began to answer more and more invasive questions about my personal life and religion. The whole ordeal left me very uncomfortable, but because I was young and desperate, I put up with it. In fact, I even went back for a second interview!

At the time, I thought I had to put up with that sort of treatment. Only recently have I realized that the interview was extremely unprofessional and it wasn’t something I should have felt obligated to endure.

And I’m not the only one with a bad interview story. Slate ran an article sharing others’ terrible experiences, which ranged from having their purse inspected to being trapped in a 45 minute presentation! No doubt, this is just the tip of the iceberg when it comes to mistreatment by potential employers.

So, why do we put up with it?

Well, sometimes people just don’t know better. Maybe, like I was, they’re young or inexperienced. In these cases, these sorts of situations seem like they could just be the norm. There’s also the obvious power dynamic: you might need a job, but the potential employers probably don’t need you.

While there might be times you have to grit your teeth and bear it, it’s also worth remembering that a bad interview scenario often means bad working conditions later on down the line. After all, if your employers don’t respect you during the interview stage, it’s likely the disrespect will continue when you’re hired.

Once you’ve identified an interview is bad news, though, how do you walk out? Politely. As tempting as it is to make a scene, you probably don’t want to go burning bridges. Instead, excuse yourself by thanking your interviewers, wishing them well and asserting that you have realized the business wouldn’t be a good fit.

Your time, as well as your comfort, are important! If your gut is telling you something is wrong, it probably is. It isn’t easy, but if a job interview is crossing the line, you’re well within your rights to leave. Better to cut your losses early.

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