What does [this proposed legislation](https://www.dol.gov/agencies/whd/flsa/misclassification) mean?
I am an Uber driver — an independent contractor — in the hotseat and spotlight of the news today with this. However I honestly don’t know whether or not to support this. Can someone please explain this like I’m 5?
In: 4
Generally speaking, you should support it.
As you probably know, there are differences between an employee and an independent contractor. ICs are _generally_ supposed to be employed by a different organization (maybe even self employed) and are paid to do a specific job for a client; when that job is done, the IC’s contract is complete and the move on or sign a new one. Employees, in contrast, work for the company and take whatever work the company has for them; they don’t typically work for others. There are specific tests that the court uses to determine an employee vs. and IC, but those are a bit beyond our scope.
Companies like Uber et al have been playing in the grey area between the two definitions – gig work like driving for Uber has _some_ similarities to being an employee and _some_ similarities to being an IC. Because of the ambiguity, Uber treats all of its drivers as ICs (which is far more financially favorable to Uber).
The proposed guidance will color in the grey area making the standards more clear. While the rule is still in draft right now, it is _highly_ likely that this will make it harder – if not impossible – for Uber to classify drivers as ICs. This could mean that drivers would be required to make minimum wage _after_ expenses, would be eligable for health benefits/overtime/vacation, and a host of other benefits given to employees.
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