The online sharing economy is supposed to make things simple for consumers. But it’s creating some complicated questions about labor laws.
A recent ruling by the California Labor Commission found an Uber driver should be classified as an employee rather than a contractor. Uber is appealing the decision. But if it stands, it could have expensive implications for Uber and similar platforms.
Shelby Clark is the executive director of Peers, a website that provides services and advice for workers in the sharing economy. Clark said the existing social safety net is designed around employers providing benefits to employees.
“Right now if you are an Uber driver or a Handy cleaner, it’s not possible for you to access something like workers compensation or anything along those lines, where if you were injured on the job you’d be taken care of," Clark said. "It’s absolutely not possible. Those products do not exist.”
Clark’s organization is trying to create those products. He said there are a number of other potential solutions, as well, including creating a new class of employees or overhauling what is currently in place.
“Right now, platforms cannot contribute to benefits for independent contractors. As soon as they do, it influences the decision that those workers are actually employees," Clark said. "That’s one reason why that I think we would need to see regulatory reforms.”
