Uber and Lyft ordered by California judge to classify drivers as employees (theverge.com)

Article summary

A California judge has ordered Uber and Lyft to classify their drivers as employees, rather than independent contractors, in a preliminary injunction. The ruling is stayed for 10 days to allow the companies to appeal. The classification of drivers as employees would require Uber and Lyft to provide benefits such as minimum wage, overtime compensation, and health insurance. The companies argue that this would limit the flexibility of their drivers and increase their operating costs.

Main themes

• gig economy
• employment law
• healthcare
• autonomous vehicles
• labor rights
• business models

What commenters say

• Some commenters argue that universal healthcare could alleviate the issue of employment-tied health insurance, allowing Uber and Lyft to reclassify drivers as employees without significantly increasing costs.
• Others believe that the companies' concerns about flexibility are a red herring, and that they can still offer flexible hours to employees while providing benefits.
• A few commenters think that the rise of autonomous vehicles will eventually make the issue of driver classification moot.
• Some argue that Uber and Lyft are simply trying to avoid paying the extra costs of hiring employees, and that they could work out a system to accommodate both flexible schedules and employee benefits if they wanted to.
• There is disagreement about the feasibility of self-driving cars, with some believing they are just a few years away and others thinking they are decades away from being widely available.
• Some commenters point out that the issue of driver classification is not just about benefits, but also about the fundamental nature of the employment relationship and the rights of workers.
• Others argue that the companies' business model is based on exploiting drivers and that reclassification is necessary to protect workers' rights.