What does it mean to be an independent contractor? How is that different than employment?
When you agree to be an independent contractor, you agree that you are providing services as a business instead of as an employee. You file taxes as a sole proprietor or small business owner.
Why do companies use independent contractors instead of hiring employees? Part of it is financial: it costs less, they don't have to pay employment taxes and insurance, and there are fewer restrictions and requirements.
The trade-off for contractors is more freedom but fewer protections. Minimum wage and FLSA laws don't apply.
Are companies like Doordash, Uber/Uber Eats, Grubhub, Instacart, and Lyft misclassifying employees? Are they exploiting contractors? That's a hot topic, with a lot of debate and a lot of people on both sides of the issue. Many like myself are somewhere in the middle: I believe that gig economy platforms abuse the use of independent contractors. However, I don't want to be an employee.
The following articles dive into the differences between being an independent contractor and being an employee. We also take a look at a lot of the legislative and court issues related to independent contractor status.
Independent Contractor or Employee?
How Independent Contractor differs from Employee, and Why it Matters
Too many people sign up for gig economy platforms, agree to terms that say they are doing so as an independent contractor,, and yet still think they're working as an employee. We examine the differences and why it's important to understand what it means to be a contractor before providing services for Doordash, Uber, Instacart or any other platform.
Are You Exploited by Doordash, Uber, Instacart, etc? How do you Protect Yourself from Being So?
We look at exploitation of independent contractors. Gig economy companies like Doordash, Uber, Instacart and others exploit the independent contractor classification, but that doesn't mean a contractor has to be exploited. We discuss how one can remain in control of their business and protect against being exploited.
Would a Dasher Strike Force Doordash to Change?
Several Dashers tried to organize a nationwide strike against Doordash in July, 2021. On the Deiver on Your Business podcast, we discussed whether this could be successful and the issues of organizing independent contractors in the gig economy.
Articles on California's AB5 Legislation
The State of California passed AB5 in September 2019. That legislation implemented an ABC test to determine employee classification. The strict requirements of the ABC test would potentially force delivery and rideshare companies to hire employees rather than independent contractors. The following articles were commentary on how AB5 would impact delivery contractors as the legislation was considered and ultimately passed.
How Will AB5, California's Gig Economy Legislation Impact Us as Delivery Contractors?
Written while the California legilsature was considering AB5, we discussed how it could impact contractors both in California and throughout the country.
AB5 and Grubhub Postmates Doordash Uber Eats Drivers: How Does it Relate?
Examining how delivery companies like Doordash, Uber Eats, Grubhub and others stand up to the ABC test that is part of California's AB5.
AB5 and Delivery Contractors
What would happen to delivery contractors if AB5 passes? We explain what would happen to contractors, what that means for employee status, and what it could mean for opportunities to continue delivering for gig economy companies.
AB5 Has Passed. Now What?
Article written once AB5 was passed into law. We discuss what independent contractors could expect to happen next.
But You Don't Live in California. What Will AB5 Mean For You?
When AB5 passed, many contractors thought this would change things nationally. We discussed how AB5 was limited to California contractors, and what the nationwide fallout could be.
Commentary: Three Things I Don't Like About AB5 as an Independent Contractor.
My commentary on the biggest problems I saw with California's AB5 law.
Commentary: Why was AB5 Necessary for Gig Delivery?
My commentary on why I thought something needs to be done in the gig economy related to how delivery and rideshare companies exploit the independent contractor status.
Seven Questions on How AB5 Will Effect Couriers for Grubhub, Postmates, Doordash, Uber Eats, etc., in California
An overview article on how I thought AB5 could impact gig economy contractors, and what contractors in California could expect going forward.
What happens to California drivers for Grubhub, Doordash, Uber Eats etc. on January 1 with AB5?
Article written in anticipation of AB5 becoming law effective January 1, 2020. We discussed what would happen, whether things would immediately change on January 1, and how things would play out for companies like Doordash, Grubhub, Uber and Lyft.
Articles About California's Proposition 22
In response to AB5, gig economy companies campaigned together for a referendum allowing them to continue using independent contractors. It would also enact minimum pay thresholds for app-based workers. These articles discuss the impact of Proposition 22 for independent contractors in the gig economy.
What's Going on in California? Will AB5 Force Grubhub Doordash Uber Eats to Shut Down?
In August, 2020, California courts were ruling that Uber and Lyft had to cease using independent contractors. Appeals were exhausted and the companies were threatening to pull out of California. We discussed what was happening and what that would mean for delivery and rideshare workers.
California Prop 22 vs AB5: How Would it Impact Delivery Contractors (Grubhub Doordash Postmates Uber Eats etc.)?
As Proposition 22 was being introduced, we discussed what the proposition was, how the pay worked, and how it would impact delivery and rideshare contractors.
How Should I Vote on Prop 22 as a Delivery Contractor for Grubhub Doordash Uber Eats Postmates?
As Proposition 22 was about to be voted on by the people of Califorina, we discussed the implications of whether it passes or not.
Why was Prop 22 Overturned? The Judge's Reasons May Surprise You
In August, 2021, California Superior Court judge Frank Roesch ruled that California's Prop 22 decision was unconstitutional. We dove into the details of the court decision and discussed what that decision would mean to gig economy contractors.
Articles About the Department of Labor's New Independent Contractor Rules
The Department of Labor has proposed new rules that they would use to interpret whether a work relationship should be classified as employment verses independent contractor. These articles examine the proposed rule and what the implications would be for delivery and rideshare contractors.
The New DoL Independent Contractor Rule and Gig Workers
We examine what the newly proposed Department of Labor rule on Independent Contractors is and how it compares to previous interpretations of independent contractor status within the Department of Labor
Do Delivery and Rideshare Pass the New Independent Contractor Test?
We examine delivery and rideshare gigs, and compare them to the new independent contractor rules being proposed by the Department of Labor.
How Will the New DoL Contractor Rule Impact Delivery and Rideshare?
We examine what to expect if the proposed Department of Labor rule on Independent Contractors becomes final. Will that force companies to use employees? What kind of timeline can gig workers expect?
My Public Comment on the Department of Labor's Proposed Independent Contractor Rule
As part of the process for adopting new rules, the Deapartment of Labor sought out public comments. I published the comments that I submitted, discussing what I felt about the new rule and why.
Other Legislation and Court Decisions about Independent Contractor Classification
We look at a number of rulings and at legislation being considered around the country that would impact whether delivery and rideshare companies can use independent contractors or if they'll be forced into an employee model.
What is PRO Act and Why Should Doordash Uber Eats Instacart Grubhub Contractors Keep an Eye on It?
Federal legislation called Pro Act has been introduced that would, among other things, use the ABC test to determine whether a worker is an employee under the National Labor Relations Act. We examine what the legislation says about gig work and what the impact would be if it was passed.
National Labor Relations Board Says Uber Drivers are Contractors. Is this good news or bad news for Grubhub, Doordash or Postmates?
We examine a National Labor Relations Board ruling that Postmates contractors were indeed independent contractors. We examined the reason for their decision and what it means for contractors with other platforms.
New York's Highest Court Rules that Postmates Couriers are Employees. What Does that Mean for Us?
In March, 2020, New York's Court of Appeals ruled that Postmates couriers in the state were employees for the purposes of unemployment claims. We discuss what this ruling means and how it could impact the landscape for delivery contractors in partiular.