The question that continues to loom over Uber and Lyft — and vex lawyers
The number of independent contractors continues to rise, with up to 30% of the working-age demographic in the United States and Europe currently engaged in some form of independent work, according to an October study by the McKinsey Global Institute. A well-known example is the number of drivers working for ride-hailing companies such as Lyft and Uber; California had four of the five fastest-growing metropolitan areas in the country for ride-hailing drivers between 2012 and 2014.
California assemblywoman Lorena Gonzalez Fletcher is currently working on authoring another bill for the governor’s signature in 2018, one which would grant more power to drivers and other independent workers to negotiate pay and benefits. A similar California bill was dropped last year due to strong challenges from businesses and some labor leaders. Operating expenses could increase by more than 30% for businesses if independent contractors were considered employees, while some labor leaders feared that the bill would give too much control to businesses if allowed to negotiate with unions with fewer members. The bill’s other obstacle lies in the fact that giving drivers employee status would give companies stronger control over working schedules, which would remove one of the benefits of independent contracting - namely being able to work part-time on flexible schedules for extra money.
See "The question that continues to loom over Uber and Lyft — and vex lawyers", Liam Dillon, The Los Angeles Times, April 3, 2017