Ride-hailing companies are still enjoying the freedom of gravitating round the law. Uber and its competitor Lyft did not receive yet a legal regulation that stipulates their obligations and benefits. The main dilemma that baffles lawmakers and lawyers regards the status of the drivers. Their nature is still unsure, and a legal Uber definition might reveal that they actually constitute a new type of workers altogether.
A Democrat Assemblywoman Allowed Gig Workers to Organize Themselves
Uber managed to become overnight a unicorn of startups. Even though the company doesn’t own any vehicle, it still managed to turn into the largest ride-hailing platform. The company defined itself as a tech organization. This is because it provides only the technology that enables drivers to carry a service for their clients. However, this explanation contains too many gaps for lawmakers. They have been looking for an Uber definition since its beginnings.
Democrat Assemblywoman Lorena Gonzalez Fletcher in San Diego has been struggling to solve this mystery for a long time now. For the moment, she managed to provide a temporary legal protection for gig workers. Despite strong opposition last year, she allowed drivers for ride-hailing companies to organize. However, she feels like her job isn’t done yet. Fletcher intends to draw a new bill regarding this type of company by the end of 2018.
This way, she found a temporary compromise between employees and independent contractors. However, ride-hailing companies prefer for their business to continue to cooperate with the latter ones. This way, they don’t have to cover for their driver mileage plus other costs. This would surge the expenses per employee by as much as 30%. On the other hand, companies would gain this way more control over their drivers. They would be capable of avoiding the part-time work culture that materialized around these ride-hailing organizations.
An Uber Definition Will Officially Acknowledge the Presence of the Platform Economy
For the time being, the country doesn’t own any numbers regarding how many independent contractors are there. State labor and officials can’t keep an eye on this modern transformation within professional mediums. However, there is awaited a federal report to discuss on-demand economy. Nonetheless, this is scheduled for June.
Thus, Lorena Gonzalez Fletcher is among the representatives that believe that the new platform economy is here to stay. In this case, it needs legal and safe parameters according to which to roll out its business practices. Thus, they will continue to work on obtaining a bill that designates the quality of work, safety net, benefits, and also responsibilities.
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