Robert Reich: Uber's "share economy" is a "share the scraps" economy

https://www.facebook.com/RBReich/posts/1018294298183166

Hours ago the California Labor Commission ruled that Uber drivers are employees -- not independent contractors -- because Uber is "involved in every aspect of the operation," controlling the tools drivers use, monitoring their approval ratings, and terminating their access to the system if their ratings fall below 4.6 stars. Uber had argued its drivers are independent contractors and that it is "nothing more than a neutral technology platform."

If Uber drivers are employees, Uber has to give its drivers Social Security, workers’ compensation, unemployment insurance, time-and-a-half for overtime, employer-provided health care (under the Affordable Care Act), and the right to bargain collectively. All this could affect its valuation, currently above $40 billion, and the valuation of other "share economy" companies that rely on large networks of so-called "independent contractors."

The rise of “independent contractors” Is the most significant legal trend in the American workforce – contributing directly to low pay, irregular hours, and job insecurity. New software technologies are allowing almost any job to be divided up into discrete tasks that can be parceled out to workers when they’re needed, with pay determined by demand for that particular job at that particular moment.

Some workers prefer to be independent contractors because they like the flexibility. Mostly, though, they take these jobs because they can’t find better ones. And as the race to the bottom accelerates, they have fewer and fewer alternatives. The "share economy" is bunk; it's becoming a "share the scraps" economy.

Today, California's Labor Commission struck back. But the legal challenges have just begun.