Elon Law Prof. Eric Fink writes that recent consumer savings and rising profit for companies like Uber, resulting from on-demand transportation apps, are being realized through reduced labor protections and employee benefits "borne by workers, out-of-sight and out-of-mind to the public that enjoys their services and the companies that profit from them."
“These companies … insist that workers are ‘independent contractors’ operating their own micro-businesses. As a result, workers assume the legal risks and financial costs of doing business, which in a traditional employment relationship would be the employer’s responsibility.
“Uber drivers, for example, must provide their own vehicles and pay for the maintenance, gas, insurance and various other costs of operation. These expenses put a substantial dent a driver’s income. While Uber touts typical annual earnings for drivers in the $90-100,000 range, figures that have repeatedly been called in question, after accounting for expenses, it is questionable whether Uber drivers really earn more than traditional taxi drivers.
“Workers classified as independent contractors also lack protection under wage and hour, anti-discrimination, workplace safety, workers compensation, unemployment compensation and other employment laws. They are exposed to risks and vulnerable to exploitation that such laws are intended to shield against.”
Read the piece in Greensboro, North Carolina’s News & Record here.
Learn more about Eric Fink here.