California Labor Board Ruling

[Dick Seibert]

California’s labor commissioner said an Uber Technologies Inc. driver who connects with customers through the company’s app must be considered an employee, a decision that strikes at the heart of its business model.

“We see this as a problem that’s growing larger with each year, with employees lacking security and even basic rights when they are treated as independent contractors,” said Steve Smith, spokesman for the California Labor Federation, which has backed tougher regulations on ridesharing companies.

It’s not just startups that test the boundaries: FedEx Ground Package System Inc agreed to pay out a $228 million settlement to 2,300 California drivers who said they were misclassified as independent contractors, according to a June 12 filing with the Securities and Exchange Commission.

Uber spokeswoman Kristin Carvell said in a prepared statement that the California decision applied to a single driver and contradicted previous rulings.¹

¹ http://www.bloomberg.com/news/articl...missioner-says

[Ted S.]

Re: California Labor Board Ruling

Sounds like a Democrat's job program. Only really intended to increase tax revenue.

[Jason Laws]

Re: California Labor Board Ruling

It sounds like a perfect way to decrease business. I think I would have a hard time living in California.

[dgbldr]

Re: California Labor Board Ruling

I think it's actually a good idea.

Look, we bitch and moan all the time about illegal workers and unlicensed contractors, etc. etc. Suppose you're running a taxicab or limo business, which a buddy of mine actually does. They have to pay all kinds of insurance, fees, licensing, you name it. Their drivers all have to have a clean record, chauffeur license, they get paid a living wage, vacation, some modest bennies, you name it. In some places cab plates are limited and sell for real high $. Now here comes some outfit that can play the same game by different rules and undercut you by a bunch.

How would you like it from their shoes?

[TWhite]

Re: California Labor Board Ruling

Isn't that what email did to the USPS? There needs to be a way for a new business model to emerge.

[dgbldr]

Re: California Labor Board Ruling

Isn't that what email did to the USPS?

No, not at all. What email did to USPS is like what aircraft did to trains.

What uber does is providing the same exact service, by the same exact means (automobile and driver), but circumventing all rules and regulations that apply to the existing businesses.

There needs to be a way for a new business model to emerge.

And there needs to be no cheating also. If the authorities truly believe it's in the best interest of the public to NOT require any licensing, etc. for someone transporting passengers for hire, then fine. They can take those off the books and uber can play head to head with unlicensed, uninsured, unregulated cab companies.

This is not just an employment issue. If uber is found to be an employer engaged in the business of transporting passengers, then it's no different than a regular taxi company (which they really are) and all of a sudden they are out of business.

[Jason Laws]

Re: California Labor Board Ruling

I just don't have to deal with any of that where I live. But I am sure my thinking would change if I did. I think your points are vaild and I think you have said before that it goes on where you live, too.

My biggest problem right now is black flies.....I am sure they are an unlicensed company doing business illegally.

[dgbldr]

Re: California Labor Board Ruling

I think you have said before that it goes on where you live, too.

Yes, we have black flies in northern MI, I learned a long time ago not to go dirt biking in late June :)

[Dick Seibert]

Re: California Labor Board Ruling

Yes, we have black flies in northern MI, I learned a long time ago not to go dirt biking in late June :)

I'll take your black flies and raise you our Greenies.

[Jason Laws]

Re: California Labor Board Ruling

Yes, we have black flies in northern MI, I learned a long time ago not to go dirt biking in late June :)

I thought that was how you got away from them, at a high rate of speed.

[Jason Laws]

Re: California Labor Board Ruling

I'll take your black flies and raise you our Greenies.

Too late - they're here...in the woods somewhere, I think.

[dgbldr]

Re: California Labor Board Ruling

Apparently the French are not amused either, and they are a bit more pragmatic about it.

http://edition.cnn.com/2015/06/25/eu...l?eref=edition

[Kent Brobeck]

Re: California Labor Board Ruling

The cab companies help write the regulations which block competition. Total crony capitalist business model.

[Dick Seibert]

Re: California Labor Board Ruling

My intent publishing this ruling is that fact that the government wants all workers on jobs to be employees, the IRS told me during an audit in 1969 that all workers on construction jobs should be W-2 employees, 1099 subcontracting had to be ended, too many small contractors and subcontractors were not paying taxes, that was 46 years ago and there are many one-man contractors on jobsites not paying taxes, not only income taxes but FICA, unemployment, and disability insurance taxes.

[MarkMc]

Re: California Labor Board Ruling

Interesting fact Dick, as such you'll no doubt have something more substantial than a 1969 reminiscence to support it. Given it the Gov't and FOIA, should be a snap to do with relatively straight lines. Use chalk if necessary.