Across the country, it is taken for granted that just a few taps on a smartphone can get you just about anywhere you want to go. Ride-sharing apps like Uber and Lyft have revolutionized urban transportation and it’s easy to forget that this convenience didn’t exist even just 10 years ago.
Now, California is set to return to those days this Friday—the day that Uber and Lyft say they will be forced to suspend operations in the state due to a new state law. The impending suspension is bad news for both the customers who rely on the service and the 220,000 drivers earning income through the platforms.
As is often the case, this disruption stems from a well-intentioned but poorly thought out law designed to protect workers from exploitation. Last year, California lawmakers passed Assembly Bill 5 (AB5), setting stricter standards for when workers should be classified as employees rather than independent contractors.
Despite being able to decide their own workdays, working hours, start times, and end times, drivers for ride-sharing platforms like Uber and Lyft must now be classified as employees rather than as independent contractors.
Continue reading at Southern California News Group.
Ben Wilterdink is the former Director of Programs at the Archbridge Institute. Follow him @bgwilterdink.
Economics of Flourishing
Across the country, it is taken for granted that just a few taps on a smartphone can get you just about anywhere you want to go. Ride-sharing apps like Uber and Lyft have revolutionized urban transportation and it’s easy to forget that this convenience didn’t exist even just 10 years ago.
Now, California is set to return to those days this Friday—the day that Uber and Lyft say they will be forced to suspend operations in the state due to a new state law. The impending suspension is bad news for both the customers who rely on the service and the 220,000 drivers earning income through the platforms.
As is often the case, this disruption stems from a well-intentioned but poorly thought out law designed to protect workers from exploitation. Last year, California lawmakers passed Assembly Bill 5 (AB5), setting stricter standards for when workers should be classified as employees rather than independent contractors.
Despite being able to decide their own workdays, working hours, start times, and end times, drivers for ride-sharing platforms like Uber and Lyft must now be classified as employees rather than as independent contractors.
Continue reading at Southern California News Group.
Ben Wilterdink
Ben Wilterdink is the former Director of Programs at the Archbridge Institute. Follow him @bgwilterdink.
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