What would happen if Uber transitioned its drivers from contractors to employees? It’s a question being hotly debated right now, with drivers, companies, and investors all coming down on different sides. So what really could it look like if drivers became employees? Senior RSG contributor Christian Perea weighs in.
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Are Uber Drivers Independent Contractors? What Happens If They Become Employees?
There’s been a lot of debate in parking lots, boardrooms, and court rooms over the last few years over whether or not drivers for companies like Uber, Lyft, or DoorDash are really considered independent contractors. A recent ruling in California has once again brought this question to the forefront by adopting a new legal test known as the “ABC Test” to determine whether or not a company can classify a worker as a contractor.
The new criteria leans heavily in the direction of classifying almost every worker in the on-demand economy as an employee. Under the new rules, a company must prove that the worker in questions satisfies all three conditions before they can be labelled a contractor.