Law Commons^™

Precarious Work And Independent Contractors: An Overview And Comparative Analysis Of Recent Developments In California And Ontario, Lou Beckett

Canada-United States Law Journal

No abstract provided.

Independent Contractors In Law And In Fact: Evidence From U.S. Tax Returns, Eleanor Wilking

Northwestern University Law Review

Federal tax law divides workers into two categories depending on the degree of control exercised over them by the service purchaser (i.e., the firm): employees, who are subject to direct supervision; and independent contractors, who operate autonomously. Such worker classification determines the administration of income tax and what it subsidizes, as well as which nontax regulations pertain, such as workplace safety and antidiscrimination protections. The Internal Revenue Service and other federal agencies have codified common law agency doctrine into multifactor balancing tests used to legally distinguish employees from independent contractors. These tests have proved challenging to apply and costly to …

How To Pay Off Hard Work, Juliette Hernandez

University of Miami Business Law Review

No abstract provided.

California And The Terrible, Horrible, No Good, Very Bad Statutory Employee Classification Scheme, Richard H. Gilliland Iii

Washington and Lee Law Review

The battle over worker classification between state governments, on the one hand, and gig economy companies, on the other, has raged since at least the first time someone ordered an Uber. Nowhere has this battle played out more prominently in recent years than in California. In 2019, the state legislature passed AB 5, a bill which adopted a stringent independent contractor standard and effectively classified all gig economy workers as employees of the companies whose apps they use to find work. AB 5’s ripple effects were enormous—the significant popularity of gig economy apps among consumers launched what might have been …

Individuals As "Employees" Or "Contractors": Why It Matters What You Are Called When It Comes To Federal Taxes, Robert Eisentrout

Michigan Business & Entrepreneurial Law Review

When we file federal taxes, our individual tax burdens are affected by whether our employers and the IRS classify us as “employees” or “contractors.” Today, that distinction is not a neat one. Classifying workers as “employees” or “contractors” belies increasing similarities—like the ability to work remotely during the COVID-19 pandemic—between those classifications. With those increasing similarities in mind, this Note makes two arguments about the employee / contractor distinction in federal tax law. First, federal tax law draws an increasingly arbitrary and unfair line between employees and contractors given the modern substantive convergence of work done as an “employee” or …

Defining Who Is An Employee After A.B.5: Trading Uniformity And Simplicity For Expanded Coverage, Edward A. Zelinsky

Catholic University Law Review

A.B.5 made a significant but limited expansion of the coverage of California labor law but at a notable cost. Even as A.B.5 broadened the reach of the Golden State’s labor protections, A.B.5 also made the definition of “employee” more complex and less uniform. Those seeking federal or state legislation like A.B.5 confront the same trade-off under which greater coverage is achieved at the expense of more complexity and less uniformity in the definition of who is an employee. The same political forces and policy considerations which molded A.B.5 in California will have similar effects in other states and in the …

The Dynamex Dichotomy And The Path Forward, Leticia Chavez

Golden Gate University Law Review

The gig economy is a collection of markets that connects consumers with on-demand service providers (“gig workers”), and it has revolutionized the way in which consumers seek and receive services, such as transportation and household tasks. The ease of calling an Uber or Lyft, as opposed to hailing a cab, led to a decrease in arrests for driving under the influence in major cities. Similarly, it transformed the way in which many workers seek and perform work, as many gig workers enjoy flexibility and control over their work schedule. Gig workers can work for multiple platforms and also have authority …

Employment Classification And Human Dignity In The Gig Economy, Bridget Nicole Gonzalez

St. Thomas Law Review

What drives a business? Most simply put, profit. But to what end? Employment classification has a significant impact on a business’s profit. The two most common worker classifications recognized globally are the independent contractor and the employee. This classification determines whether the individual receives access to pay, qualifies for benefits, and gains protection from discrimination. All these factors come at a cost to an employer and result in a cut in their overall profit. In the twentieth century, employment classification has been subject to heavy litigation in a particular field: the gig economy. The gig economy, which primarily grew in …

Challenges For Black Workers After 2020: Antiracism In The Gig Economy?, Michael C. Duff

All Faculty Scholarship

Black workers’ fortunes in the coming decades are tied to the expansion of the Gig economy, the impact of which is to destroy employee status. Because much antiracism law and policy has been transmitted to society through the medium of employment law, the disappearance of employee status should be of concern to all foes of racism. This short essay argues that Section 1981 of the Civil Rights Act of 1866 should be expanded to cover all forms of racist workplace conduct. Regulatory arbitrage will continue to challenge the definition of employment for the foreseeable future. It is fitting that one …

Aligned: Sex Workers’ Lessons For The Gig Economy, Yvette Butler

Michigan Journal of Race and Law

Society’s perception of a type of work and the people who engage in money-generating activities has an impact on whether and how the law protects (or does not protect) the people who perform those activities. Work can be legitimized or delegitimized. Workers are protected or left out to dry depending upon their particular “hustle.” This Article argues that gig workers and sex workers face similar challenges within the legal system and that these groups can and should collaborate to their collective advantage when seeking reforms. Gig workers have been gaining legitimacy while sex workers still primarily operate in the shadow …

The Gig Economy’S Battleground – California Proposition 22, Rebekah Didlake

GGU Law Review Blog

This November, California voters will have the chance to voice their opinion in the ongoing battle between app-based tech companies and the state of California. These companies want to continue classifying their drivers as independent contractors even though the state of California has determined these drivers are employees. So far, Uber, Lyft, and Doordash have spent $110 million backing Proposition 22, titled the “Save App-Based Drivers & Services Act.” These companies are hoping California voters will give them the relief they have not been able to receive through the courts or the state. This article analyzes Prop 22 in light …

All The World’S A Platform?: Some Remarks On 'Marketplace Platform' Employment Laws, Michael C. Duff

All Faculty Scholarship

This paper addresses the enactment of marketplace platform laws, which have arisen as a remarkable feature of the "gig" economy in recent years. A marketplace platform law decides the question of whether an individual worker is an independent contractor or an employee — an ongoing controversy in all employment law, including workers’ compensation law — by emphasizing factors other than those normally considered in traditional legal analyses. As of this writing, seven states appear to have enacted marketplace platform laws.

In short, marketplace platform laws — developed substantially and lobbied aggressively by the company Handy, Inc. — make it much …

Opposite Sides Of The Same Coin: Worker Classification In The New Economy, Griffin Toronjo Pivateau

Hofstra Labor & Employment Law Journal

Massive changes have disrupted the institution of employment. The growth of the service sector, technological advancements, and developments in the finance market have created a demand for new employment models. Employers have responded by increasingly utilizing independent contractors to fill positions traditionally held by employees.

Designating a worker as either "employee" or "independent contractor" determines the degree to which employment law applies to the worker. An independent contractor falls outside many of the benefits and protections that the law provides employees. Currently, courts, states, and administrative agencies use a confusing array of employment tests, created for different purposes and different …

Age Discrimination In The On-Demand Economy And Crowdwork, Miriam A. Cherry

Faculty Publications

(Excerpt)

The dominant narrative about the on-demand or gig economy focuses on the plight of Millennials, the generation born between 1982 and 2004. Reporters, bloggers, and commentators have largely confined their account of gig platforms to what the on-demand economy means for Millennials who are just beginning their careers. Media sources have spotlighted the hardships facing young, tech-savvy workers who are forced to cobble together a living through a combination of part-time work, entrepreneurial activities, and insecure gigs online. These sources note that these Millennials are barely scraping by and often lack job security or benefits. When discussing the problems …

Whose Gig Is It Anyway? Technological Change, Workplace Control And Supervision, And Workers' Rights In The Gig Economy, Alex Kirven

University of Colorado Law Review

Under the current regime of employment and labor laws, coverage is determined on the basis of whether a given worker is an employee as opposed to an independent contractor. These laws contain inadequate definitions of "employee," leaving it up to the court system and administrative agencies to define the term. The current tests that they use fail to capture the realities of the gig economy, a system that purports to promote greater worker freedom through the fragmentation of work assignments into smaller tasks or gigs. The gig economy has offered consumers lower prices and has given workers greater autonomy in …

Uber Drivers: A Disputed Employment Relationship In Light Of The Sharing Economy, Nicholas L. Debruyne

Chicago-Kent Law Review

Ride-sharing companies such as Uber Technologies Inc. (“Uber”) have revolutionized the ride-sharing industry. In the realm of employment classification, Uber has a substantial financial motivation to classify its drivers as independent contractors because it frees Uber from financing workers’ compensation programs, payroll taxes, and employee benefit programs. Others argue that Uber should not be able to escape such direct liabilities. In light of this ongoing debate, the U.S. District Court for the Northern District of California has recently denied Uber’s class-action settlement agreement, thereby preserving the issue of whether Uber drivers should be classified as employees or independent contractors. Federal …

"Dependent Contractors" In The Gig Economy: A Comparative Approach, Miriam A. Cherry, Antonio Aloisi

American University Law Review

No abstract provided.

Are Uber And Transportation Network Companies The Future Of Transportation (Law) And Employment (Law)?, Miriam A. Cherry

Faculty Publications

(Excerpt)

Uber, Lyft, and other transportation network companies (“TNCs”), have garnered a great deal of attention in the media and popular press for the efficiencies of their service, their “disruptive” business models, and their labor practices. Uber has almost 400,000 drivers in California and Massachusetts alone. Other TNCs have countless drivers of their own, and TNCs have become especially popular in densely populated cities. Gone are the days when one needed to hail or flag down a taxi, or call a dispatcher to request one. Now customers can summon TNC drivers using “apps” on their smartphones, and TNC platforms match …

The Tax Lives Of Uber Drivers: Evidence From Internet Discussion Forums, Shu-Yi Oei, Diane M. Ring

Faculty Scholarship

In this Article, we investigate the tax issues and challenges facing Uber and Lyfi drivers by studying their online interactions in three internet discussion forums: Reddit.com, Uberpeople.net, and Intuit TurboTax AnswerXchange. Using descriptive statistics and content analysis, we examine (1) the substantive tax concerns facing forum participants, (2) how taxes affect their driving and profitability decisions, and (3) the degree of user sophistication, accuracy of legal advising, and other cultural features of the forums.

We find that while forum participants displayed generally accurate understandings of tax filing and income inclusion obligations, their approaches to expenses and deductions were less accurate …

Lessons From The Dramatists Guild For The Platform Economy, Matthew T. Bodie

All Faculty Scholarship

Are platform workers part of a firm or are they working as individual businesses? Are they providing their labor as part of a team, or do they hold on to individual capital throughout their transactions? This essay explores the question of employee versus independent contract through the specific examples of dramatists and screenwriters. Dramatists have chosen to conduct their work as separate artists; they maintain copyright over their work, and they retain control over its use. Screenwriters, on the other hand, work as part of a team; they hand over their copyright to the production company and cede control over …

The Uberization Of Arbitration Clauses, Jill I. Gross

Elisabeth Haub School of Law Faculty Publications

In the early part of this decade, the Supreme Court’s decisions interpreting the Federal Arbitration Act (FAA) strictly enforced predispute arbitration clauses (PDAAs) with class action waivers and so-called “delegation” provisions in consumer contracts. Just after the Court’s 2013 ruling that clauses with class action waivers did not prevent claimants from vindicating their statutory rights, Uber— a company at the heart of the “gig economy”—started inserting PDAAs in agreements with its drivers and passengers. Uber’s move has generated dozens of challenges to its clause in lawsuits across the country, and thus dozens of federal court opinions contributing to modern FAA …

Does Work Law Have A Future If The Labor Market Does Not?, Noah D. Zatz

Chicago-Kent Law Review

This Essay is based on the 37th Annual Kenneth M. Piper Lecture. It offers a new perspective on the much-discussed “future of work.” That discussion typically highlights changes within the labor market that undermine the employment relationship’s role as the bedrock for work regulation. But might something even deeper be afoot, namely the disintegration of “the labor market” itself? Several recent developments challenge the legal construction of employment as occurring wholly inside a distinctive, and distinctively economic, market sphere. This Essay considers Uber and the relationship between work and “sharing,” Hobby Lobby and the relationship between work and religion, the …