California says Uber driver was employee
He says over the years, the independent contractor workforce has grown, partly because employers don’t have to pay things like overtime or health benefits.
John-Paul Ferguson, who teaches strategy at Stanford’s business school, says if Uber drivers are considered employees, that means higher labor costs, and ultimately, “We would probably see that passed on as slightly higher prices to end customers.”
But that won’t kill Uber’s success, Ferguson says. It’ll just give them less of an advantage over regular cab companies. As to how this ruling might affect other app-based services like Airbnb or TaskRabbit?
“There’s going to be a lot of careful parsing of how different firms have treated the people who are using their apps to provide services to people,” he says.
Ferguson says it’ll probably depend on what kind of contracts exist between the firms and the service providers.
The sharing economy has been praised for its flexibility for employees — and criticized for its potential for discrimination and lack of benefits. Here are a few stories on the issue:
In the Sharing Economy, Workers Find Both Freedom and Uncertainty
How Everyone Gets the ‘Sharing’ Economy Wrong
Stories You Might Like
Marketplace is on a mission.
We believe Main Street matters as much as Wall Street, economic news is made relevant and real through human stories, and a touch of humor helps enliven topics you might typically find…well, dull.
Through the signature style that only Marketplace can deliver, we’re on a mission to raise the economic intelligence of the country—but we don’t do it alone. We count on listeners and readers like you to keep this public service free and accessible to all. Will you become a partner in our mission today?
