A recently passed referendum in California that defines workers in the so-called “zero-wage economy” as independent contractors rather than employees could have implications for labor laws across the United States and beyond.
The ad, posted on YouTube as part of an unprecedented $200 million hit by a California referendum by Raffles, Uber and others, is designed to convince voters that those who use their apps to find work should be defined as “independent contractors,” thereby overturning a 2019 California law that defines them as employees.
This is a huge victory for these companies, as they no longer have to provide health care and paid time off for their drivers. The companies see the victory as a vote of confidence in their agreement to define app-based “zero work” as a “third way” work model, and could lead to similar actions elsewhere.
This will be something we can witness that will affect more than just one state, California, right now,” said Chris Grace, a driver and blog contributor. Because other states are considering the challenge, including Massachusetts, New York, and even New Jersey.
Grace supports the referendum, he says, because as an independent contractor, the promise of flexibility works for him.
Grace said, “I don’t work full time, I work part time, so I can choose my commute as much as I want, and it’s more convenient for me.
But opponents say these companies’ victories come at the expense of workers’ rights. They claim that this app-based piecework seems to offer flexibility, but it also has serious problems.
Karin Carter Patton, chief business representative for the Chicago Truckers Union, said, “In general, the definition of piecework is a labor problem everywhere, and the absence of unemployment benefits and the denial of compensation to workers, which deprives them of the protections to which they are entitled under the law, are lost.
Some labor experts say the victories of app companies like Uber and Raffles may encourage other industries to put their workers into “third way” mode.
I think the scary thing about that prospect is that it provides a path for a lot of other types of companies to follow,” said Brian Gasty, a researcher at the University of California, Los Angeles, Labor Center, “and I suspect and worry that there will come a day when Wal-Mart decides to say, ‘Hey, actually our workers are independent contractors, too.
The concept of what we now call having a “job” may be changing as Uber, Raffles and other app companies look beyond California.
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