Uber has lost money every year since its founding because it undercharges customers. When accounting for the full costs of its infrastructure, salaries and other overhead, the company spends more per ride than it makes. This has allowed it to kick the stuffing out of legacy taxi companies which, lacking generous venture capitalists, have to operate at a profit.How Much Do Uber and Lyft Drivers Make in 2019?
New Jersey Senate President Steve Sweeney introduced bill S4204 in early November, which proposed dramatic changes to the state employment code that would redefine many independent contractors as employees. The measure defines the change as “individuals who perform services for remuneration shall be deemed employees, not independent contractors.”
“If a contractor has his or her own employees, their own equipment, they actively marketed their services, and the business hiring them has no control over their work, they could still be considered an employee if it so happens the work they are doing is within the scope of what that hiring business normally does,” she added. “That would leave a lot of people out of work and without income.”Proposed New Jersey legislation threatens independent contractors
In order for someone to be considered an independent contractor, the test requires them to be “free from control or direction over the performance of the service” (meaning they select their own jobs and hours), that they are performing work outside the normal course of business from the entity hiring them, and that they are customarily engaged in the same kind of work they are being hired to do.New Jersey Takes a Swipe at the Gig Economy With New Independent Contractor Bill
Freelancing is not ideal. I do not get paid when I take a vacation. I have no employer to pay my health insurance, match my 401k or invite me to a holiday party. My income comes in fits and bursts. But despite the challenges, it works for me, and for thousands of writers like me. Many of us are women, often mothers raising children and supporting families. For my family, the tradeoffs have been worth it. I drive the children to school and I am home when they get back, able to help with homework and take them to music lessons. When one is sick, I juggle my schedule and make it work. My salary pays our mortgage and puts food on our table.
I do not work for one client, but many. Rather than reclassify me as an employee or risk failing the ABC test and facing penalties, these clients would likely find a freelance writer in another state, as my work can be done from anywhere and freelancers are not in short supply. Without freelance work, I would have to find a staff position at a time when few exist, and then commute to New York City, paying huge sums for childcare. These changes would undo my life as I know it.In an attempt to improve the gig economy, lawmakers may ruin my career, freelancer says