California Political Review: In a recent sweeping ruling that helps labor unions but runs contrary to small businesses and Silicon Valley innovation and the developing “gig” economy inspired by companies like Uber and Lyft, the California Supreme Court has decided that hiring companies no longer have much a say in whether a person who provides services for hire is classified as an “independent contractor” or an “employee.” The implications of the new ruling, filed on April 30, in the “Dynamex Operations” decision are huge, as it will extend onerous state employment and labor laws to new classes of workers, and will force the reclassification of tens of thousands of business relationships in the state between businesses and their former contractors, in the process, eliminating or raising the costs of goods and services to average Californians, while standing as a major obstacle to new popular ideas in technology such as ride sharing and delivery services.
The facts of the case itself center on a delivery driver for a company who claimed he was misclassified as an independent contractor. The attorneys for the driver successfully argued against the current standard, which used a multi-factor test to determine the proper classification of a worker.
Many new technology-aided companies like Uber and Lyft depend on workers who want independence with flexible hours and who want to set their own pace of work. However, workers classified as employees under the state and federal labor laws are generally guaranteed more expensive health care benefits and worker compensation, as well as collective bargaining rights, especially in California. Unions are particularly opposed to independent contractor relationships and they seek leverages in the law to add more members and therefore more political power. Citing the need for more “worker-friendly” laws, one lawyer in support of the change said, hyperbolically, “as the federal government increasingly abandons its past commitment to protecting workplace rights, the states are stepping up to fill the gaps.”
Under the new rules, businesses have almost no say in how their business relationships between employees and contractors are separated and classified. more here
National Socialism, writ LARGE.
(all mediation through the State even though the “means of production” is still “privately” held – as opposed to communist socialism which expropriates the “means of production” as well as all mediation)
Ha ha! CA – been nice knowin ya!
(not really – can’t fail soon enough)
izlamo delenda est …
Workers hardest hit. As usual when government is involved.
California has always hated independent contractors – not because the state wants to “protect workers,” but because the state loses money and power. In many instances, both the company and the worker want an independent contractor relationship – but what the parties want is no factor in California defining the relationship.
Companies like Uber and Lyft, who develop business models utilizing technology and independent contractors, may likely disappear in California if the drivers are classifieed as employees. Once a Uber driver alerts Uber that he or she is available for fares, the driver is ostensibly on the clock, and Uber is also responsible for costs associated with the vehicle. There are many areas currently served by Uber and Lyft which may not receive service because of the additional costs of the employer/employee relationship. Many Uber drivers also turn down assignments because it is not cost effective for them; if they are employees then their ability to decline giving rides could be curtailed.
But California politicians don’t care. It’s all about state revenue and power.
More bureaucratic bs and bogus government jobs, more tax revenue, more control, lots of unintended consequences, destruction of jobs and prosperity. What more can you ask for? The handwriting is on the wall. Those who live a parasitical life have run out of other people’s money and are in panic mode.
The independent contractor “test” was created by the IRS, and has been used for decades. One greedy asshole, and an unelected judge have thrown the system into chaos, the end result will be more businesses fleeing the state, and more people out of work. But hey, the climate is great!
California Committing Suicide.
Has a nice ring to it!
more regulation
in the land of the free !