Uber And Lyft May Define The Future Of New York State Labor Laws
A lot of us nowadays enjoy the ease and convenience of ride sharing apps such as Uber and Lyft. Uber was recently valued at $40 billion as a company. But Uber's success comes with a lot of drawbacks for the people who actually power the company -- the drivers -- and they've started throwing their weight around as a powerful company, alienating many. The precedent that Uber is setting is a powerful one as we progress to a new style of economy, and that precedent has a massive impact on labor law.
The Future Of Employment?
Uber and Lyft are simply apps for your smartphone. The company does not own the cars nor do they pay the drivers for gas or upkeep. This way, the companies can boast about the hourly rates that they are able to deliver their drivers without deducting the costs of taking care of the fleet of vehicles. They even brag that New York City drivers make $90,000 per year without any evidence. Depending on where you stand, it's either ingenious or sinister.
Dodging Responsibilities?
These ride sharing companies are also able to dodge employer responsibilities for full-time employees because of the employee's status as a "contract worker" rather than a full-time employee. This status allows the tech giants to dodge requirements for providing health care and paying overtime despite the fact that many work for these companies on a full-time basis.
Pros and Cons
This is not to say that working for Uber and Lyft does not come with benefits. Drivers can work whenever they want for as long or short a period of time as they want. Everything happens quickly. Sign up for the app, provide a few documents and you're on the road making money. Many who work for the ride sharers brag about the convenience and ease.
There are many battles to be fought over these types of "third-party" companies. Courts and lawmakers will decide the rights of workers in the near future, they will define a new era of New York State Labor Law, and it could all have an effect on you. If you work as a contractor for a tech company and believe you are mistreated, it may be in your best interest to hire a skilled labor lawyer so that you can help forge the future.
