Contract Killer

“Hundreds of thousands of independent contractors, including Uber and Lyft drivers; DoorDash, Uber Eats, Instacart and Postmates couriers; Amazon Flex drivers; taxi drivers; translators; medical professionals; franchise owners and more, could become employees after the law takes effect in 2020.” As the SF Chronicle reports, California is close to passing a law which would turn contractors into employees, a move that could dramatically impact the business models of your favorite internet era services. “Proponents say that companies call workers independent contractors to avoid paying minimum wage, overtime, workers’ compensation, unemployment insurance and a range of other benefits … But opponents, who include both companies and workers, say they value the flexibility of independent contractors. Businesses … warned that adding the costs of employment could be devastating and result in higher charges to consumers and curtailed service.”

+ The move could threaten the existence of gig economy companies, some of which have business models that don’t pencil out even with the advantages offered by the current system; and instead are propped up by a bottomless pit of investor money. (Don’t get me wrong, if deep-pocketed Silicon Valley VCs want to subsidize the delivery of my kitty litter, I’m all for enjoying it while it lasts.) In other words, there’s gonna be a fight. Motherboard: Uber, Lyft, and DoorDash Plan to Spend $90 Million to Undo a Law That Protects Their Workers.

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