Posted on 08/14/2020 4:14:34 AM PDT by Kaslin
I’m willing to bet that stupid laws like this one can easily be circumvented simply by having the worker set up shop as an independent entity rather than dealing with the employer directly. An Uber driver named John Q. Smith may be classified as an employee, but even under California law I’m sure there’s no mechanism for having “John Q. Smith LLC” classified as anything other than a contractor.
And that is the intention!
Solution :
Stay away from CA cities and drive your own car
Better yet, stay away from CA
If the independent contractors become corporations, they can make contracts as they please with no “employee” baggage. The corporations are then responsible for paying their employees
Now they want to destroy the gig economy as well to maintain the power they obtained from the economic powerhouse system they inherited and then ran into the ground and destroyed.
The American people are paying the price for these power hungry leeches desperate efforts to retain their power and relevance while destroying the system that gave them their power.
Depressing. I am just about to become a Dasher. Retired, need just a few bucks to make up where I am short. I hope the gigs will survive. For me, it’s a great solution.
One of the worst offenders are sports teams. My child chose to work in sports. My child makes okay money now but struggled severely to “pay dues.” Post college my child worked as an unpaid intern at one team and a “contractor” while interning for another team. When paid it was minimum wage and/or a commission at half the full time employee rate. We even had to fight to get commission money from the team that brought him in as an unpaid sales intern. After completing the last “internship”, while waiting to finally be picked up as a full time employee at another team, guess what, no unemployment benefits because of the contractors status the teams did not have to pay State benefits. No insurance, no unemployment and no PTO. Good life lessons were learned by working two jobs and learning that hard work pays off. Some major sports corporations are ripping off employees. My child was pushed into sales because he was told he had to start there before moving into the actual business side. This is someone with a Business BA from a reputable business school. It eventually worked out but only after a few years of mom and dad paying for medical insurance and occasionally for food. Hate Jeff Bozo, but used Amazon to make sure my child had food. My child’s current team does not abuse the system and only interns college students. From what I have been told and seen first hand West Coast sports corporations are the worst offenders. I was told this is common practice with many major corporations taking advantage of state laws regarding contractors.
Typically Dims attacked a problem with a machete where a scalpel was needed. They could have stopped major corporations from abusing the intern and contractor systems without hurting legit contractors.
There is a major difference between most freelance workers and most “gig” workers. The gig workers are lower skill and often exploited (e.g., end up making below the minimum wage once they pay gas for the vehicles they need to supply themselves); the freelancers mostly aren’t.
If that were the case, Uber would just be guiding their drivers into how to get an LLC most cheaply.
You can’t not meet the (often changing) rules for contractor vs. employee work and then get around it simply with an LLC.
Instead of setting up a corporation, it may be sufficient to just set up an LLC as a sole proprietor. This will give you the ability to obtain a separate employer identification number (EIN) from the IRS, which is all you need to have your “employer” classify you as a contractor and submit a 1099 Form at the end of the year.
I’m surprised Uber hasn’t been doing this already. It’s really no different than a trucking company that uses a mix of company drivers and independent contractors. There’s clearly SOMETHING that distinguishes between the two.
Uber is minutely managing when, where and how they do their work and how they represent the Uber brand to the public.
Yes, an LLC is a corporate identity and has much different rules than sole proprietor requiring the 1099 process
Paying extra taxes makes gig work pretty unappealing. Doesn’t seem fair.
An LLC is not recognized under Federal tax law. You can have an LLC set up in your state, but when you establish the company through the IRS it must be designated as one of three types of business entity under the Internal Revenue Code: a sole proprietorship, a partnership, or a corporation.
I am a gig worker.
I teach special technology classes and write books, web content and course manuals. I don’t “work” for anyone except the specifics of my contract. One week or one month, I get to choose when. I do it all from the comforts of home and I like it.
Why, democrats?
Leave me to F alone!
If you live in California, that is the problem. It is California specifically rather than democrats in general that are making the problem.
The citizens of California have yielded control of their destinies to the radical left wing tyrants and their lawyers
Another law restricting your freedom to work on your own terms. Much like minimum wage laws do.
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