Law Commons^™

Capriole V. Uber Technologies Inc.: The Court Split Over The Interstate Commerce Worker Exemption Of The Federal Arbitration Act, Spencer Sellers

Golden Gate University Law Review

This case note analyzes Capriole v. Uber Techs., Inc., 460 F. Supp. 3d 919 (N.D. Cal. 2020) aff’d, 7 F.4^th 854 (9th Cir. 2021), a case wherein the U.S. Court of Appeals for the Ninth Circuit held that rideshare drivers who are employed as independent contractors do not qualify as interstate commerce workers within the meaning of the Federal Arbitration Act (FAA). Those who qualify as interstate commerce workers are exempt from certain arbitration requirements under the FAA. Because the court found that rideshare drivers do not qualify for this classification, rideshare drivers who want to complain about …

When Your Boss Is An Algorithm: Preserving Canadian Employment Standards In The Digital Economy, Fife Ogunde

Canadian Journal of Law and Technology

The platform or ‘‘gig” economy is a rapidly growing economy in Canada. Between 2005 and 2016, the share of gig workers among all workers in Canada rose from 5.5% to 8.2%. These include independent contractors, select freelancers and platform workers. In 2018, 28% of Canadians aged 18 and older reported making money through online platforms. Research by Payments Canada in 2021 showed gig workers as representing more than one in 10 Canadian adults with more than one in three Canadian businesses employing gig workers. As the share of platform workers in the economy has grown, so has the discussion regarding …

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 …

A Clarion Call For Businesses To Do Right, Tan K. B. Eugene

Research Collection Yong Pung How School Of Law

Prime Minister Lee Hsien Loong's National Day Rally on Sunday signalled a putative shift in the government's policy towards tackling workplace discrimination and supporting lower-wage workers. While the tripartite approach remains the bedrock in industrial relations, the government is prepared to adopt a more muscular approach through regulation by legislation. Businesses must recognise the concerns of workers amid the unpredictable arc of the global pandemic. It cannot be business as usual.

A Tale Of Two Societies: The Impact Of "Gig Economy" Laws On Rural America, Timothy W. Conner

Lincoln Memorial University Law Review Archive

In recent years, with the proliferation of online “gig economy” platforms and the growing number of workers relying on such platforms as sources of income, disputes have arisen concerning whether states should mandate that such workers be classified as employees versus independent contractors. This article considers whether such laws have the potential to impact rural populations in different ways than they impact urban populations.

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 …

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 …

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 …

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 …

Onlyemployees: Ending The Misclassification Of Digital Sex Workers In The Shared And Gig Economy, Mary Marston

American University Journal of Gender, Social Policy & the Law

I. Introduction

Mia Khalifa was only paid a total of $12,000 in shooting fees during her ten-month career in the adult film industry, but she remains one of the most searched adult film stars of all time. Social and monetary discrepancies between adult film stars’ payment and the revenue made by pornography studios parallel the difficulties other sex workers face, like exotic dancers and prostitutes, especially in terms of their misclassification as independent contractors instead of employees.

In addition to this misclassification, sex workers face a lack of financial and physical protections in traditional sex work. These lack of protections, …

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 …

Keeping Up With A Kardashian: Shedding Legal Educations' Vestigial Trade School Anxiety And Replacing The Dated Casebook Method With Modern Case-Based Learning, Jason G. Dykstra

Hofstra Law Review

Kim Kardashian West's choice to pursue her legal studies via a modernized version of apprenticeship rather than by attending law school represents an alarming vote of no-confidence in the efficacy of current legal education. Simply, legal education remains surprisingly and needlessly static despite decades of harsh criticism and the heightened velocity of change that has enveloped the legal industry. From big law to rural practitioners, the traditional law firm model proved ripe for disruption. This disruption is fueled by several discrete changes in how legal services are provided that cumulatively generated a substantial disruption across the board. They include technological …

Finding The Middle Ground: Establishing A Third, Hybrid Worker Classification, Spencer Bankhead, D. Taylor Petersen

Brigham Young University Prelaw Review

The advent of the gig economy has disrupted the current dichotomy of legal worker classification. Companies such as Uber, GrubHub, and AirBnb hire low-level workers as independent contractors, yet demand that these workers follow a litany of requirements as if they were employees. This apparent crossover between employee and independent contractor has caused serious confusion among workers and led to several class action suits around the country. In this paper we address this issue, as well as proposing that a third worker classification be established, the “dependent contractor,” which would provide protections and rights for those working in the gig …

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 …

Tax Compliance In A Decentralizing Economy, Manoj Viswanathan

Georgia State University Law Review

Tax compliance in the United States has long relied on information from centralized intermediaries—the financial institutions,employers, and brokers that help ensure income is reported and taxes are paid. Yet while the IRS remains tied to these centralized entities,consumers and businesses are not. New technologies, such as sharing economy platforms (companies such as Airbnb, Uber, and Instacart)and the blockchain (the platform on which various cryptocurrencies are based) are providing new, decentralized options for exchanging goods and services.

Without legislative and agency intervention, these technologies pose a critical threat to the reporting system underlying domestic and international tax compliance. Until now, legal …

Pluralism And Regulatory Response To The Sharing Economy, Erez Aloni

All Faculty Publications

Providers use platforms in dissimilar ways. Some providers create new capacity and designate it for exclusively commercial use via platforms. For example, a provider buys a car that serves predominantly for driving paying passengers, converts a standard residential rental to a short-term rental, or works full-time via a platform. Conversely, other providers leverage their idle capacity and monetize it (e.g., a provider uses the family car to drive platform passengers in the evenings). This chapter argues that the distinction between new and idle capacity is a fundamental concept that should guide regulation of activities in the platform economy. Creating new …

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 …

‘Airbnb’ In Western Australia: New Issues For Policy Makers Arising From A ‘Disruptive Innovatation', Bertus De Villiers

The University of Notre Dame Australia Law Review

The short terms rental market, colloquially referred to as ‘Airbnb’ accommodation, has proliferated the Australian (and international) accommodation market. The number of rooms being made available per nights in Australia via sort term rental websites runs into the hundreds of thousands. Policy makers have generally been slow to respond to this ‘disruptive innovation’. It is particularly in strata title schemes where the legality of short term rentals is being tested. In this article consideration is given to a recent judgement of the Supreme Court of Appeal in Western Australia to uphold a decision of the State Administrative Tribunal whereby a …

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.

Disrupting Work Law: Arbitration In The Gig Economy, Charlotte Garden

Faculty Articles

No abstract provided.

Comments On Restatement Of Employment Law (Third), Chapter 1, Charlotte Garden, Joseph E. Slater

Faculty Articles

This article addresses the Restatement of Employment Law, Chapter 1, on the “Existence of Employment Relationship.” The Labor Law Group previously responded to a draft version of this chapter. This article will not revisit all the considerations discussed in that article. Instead, it will focus on three issues within this topic that have become increasingly important in recent years that the Restatement does not adequately address. These three issues are: the joint employer relationship; the use of unpaid interns; and the rise of the “gig” economy, with its attendant questions about employee status in enterprises such as Uber or Lyft. …

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 …