Question 1

The situation in the U.S. goes well beyond Uber drivers

Accepted Answer

In Sept. 2020—when the U.S. was at a —California passed a piece of legislature called the California Assembly Bill 5 ( ). It started with the same hopes as the U.K. legislation on Uber drivers' worker status ( their rights). However, AB5 extends to almost all independent contractors. This includes wedding photographers, writers, theater actors, and musicians. And anyone else who chose to work on a freelance or contractual basis. People with LLCs or S Corp's weren't immune either. If they wanted to be hired, they'd have to be paid via a W-2, a 1099. This caused a whole mess. A lot of Uber drivers wanted the protections that AB5 delivered, but gig workers across the spectrum suffer. They had chosen their line of work for a reason. Reasons like job flexibility and the chance to charge higher rates were part of the argument against AB5.

Question 2

Introducing the ABC test

Accepted Answer

To keep their independent contractor status, a Californian freelancer must now pass the ABC Test. Developed during the Great Depression, the is a three-question test that asks: "(A) the individual is free from control and direction in connection with the performance of the service, both under the contract for the performance of service and in fact; (B) the service is performed outside the usual course of the business of the employer; and (C) the individual is customarily engaged in an independently established trade, occupation, profession, or business of the same nature as that involved in the service performed." For example, an event photographer couldn't work independently for a client that dictates their rate (control). They also couldn't work for a client that requires them to be on duty during business hours (relationship). And they couldn't work for a magazine, because the magazine's key business task includes photography (business). You can see how this would cause an uproar for the who consider themselves to be independent contractors. This is a whooping 28.2% of the workforce. California has since removed certain trades from the requirement. However, this excludes Uber drivers. Those who are still eligible as freelancers are having difficulty finding work. Subsequently, many employers are nervous to hire them.

Question 3

Are independent contractors in the U.S. at risk?

Accepted Answer

AB5 is not immune from nationalization. The PRO Act is currently on the table and on track to become federal legislation. This act also includes the ABC test used in California. It would change a lot for how workers in the U.S. function. While good for unions overall, the inclusion of the ABC test ostracizes freelancers.

Question 4

What's good for Uber drivers may not be good for all independent contractors

Accepted Answer

Uber drivers and drivers for other ride-sharing services deserve protection. Especially from employers who have the potential to take advantage of them. At a time when economic stimulation is keeping many Americans and businesses afloat, it's no wonder these protections are so popular. Historically, unions have delivered amazing results for labor rights in the country.

However, sweeping legislation tends to have some casualties. In the era of the Fiverr millionaire, the PRO Act could redefine what it means to be an independent contractor in America. Adjusting the 90-year-old ABC test for the modern day would drastically improve the act's relevance and equitability in an intersectional way.

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