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Gig Economy Business Model Dealt a Blow in California Ruling

posted by martyb on Wednesday May 02 2018, @04:54PM   Printer-friendly
from the GIGantic-decision dept.

Fnord666 writes:

In a ruling with potentially sweeping consequences for the so-called gig economy, the California Supreme Court on Monday made it much more difficult for companies to classify workers as independent contractors rather than employees.

The decision could eventually require companies like Uber, many of which are based in California, to follow minimum-wage and overtime laws and to pay workers' compensation and unemployment insurance and payroll taxes, potentially upending their business models.

Industry executives have estimated that classifying drivers and other gig workers as employees tends to cost 20 to 30 percent more than classifying them as contractors. It also brings benefits that can offset these costs, though, like the ability to control schedules and the manner of work.

"It's a massive thing — definitely a game-changer that will force everyone to take a fresh look at the whole issue," said Richard Meneghello, a co-chairman of the gig-economy practice group at the management-side law firm Fisher Phillips.

Source: https://www.nytimes.com/2018/04/30/business/economy/gig-economy-ruling.html

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  • (Score: 1, Flamebait) by Entropy on Wednesday May 02 2018, @07:13PM (2 children)

    by Entropy (4228) on Wednesday May 02 2018, @07:13PM (#674708)

    1.5x is more than enough. You can deduct a TON of things under 10-99 that you can't under W2. You can basically deduct almost everything. Unfortunately Obama screwed up health care costs for everyone(healthy people, sick people) so that made health care about 5x what it was, but eventually that should return to a more normal figure.

    I'm sure you can find a field this isn't true in, of course. But it's true for quite a few. If you're in the technology field you can deduct your Internet, all computer related expenses, phone, cell phone. If you ever have to go anywhere business related you can deduct your car, car insurance. Health care is deductable, etc.

    Starting Score:    1  point
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  • (Score: 2) by Thexalon on Wednesday May 02 2018, @08:08PM (1 child)

    by Thexalon (636) on Wednesday May 02 2018, @08:08PM (#674735)

    You can deduct a TON of things under 10-99 that you can't under W2. You can basically deduct almost everything.

    Which only means something if your deductions come in over the standard deduction. Which, for a typical Uber driver, they don't.

    --
    The only thing that stops a bad guy with a compiler is a good guy with a compiler.

    • (Score: 2) by Entropy on Wednesday May 02 2018, @08:33PM

      by Entropy (4228) on Wednesday May 02 2018, @08:33PM (#674748)

      It's not all about Uber. But for starts their vehicle, cell phone, car insurance start it off pretty well..