The Myth of the Gig Economy
The so-called sharing/gig economy is under fire – in California, anyway, with State Assembly Bill 5 (AB5). “Under the new “ABC” test (which is part of the new law), an individual is presumed to be an employee, unless the company can prove all of the following: A) that the worker is free from control and direction of the hiring entity in connection with the performance of the work, both under the contract for the performance of the work and in fact; B) that the worker performs work that is outside the usual course of the hiring entity’s business; and C) that the worker is customarily engaged in an independently established trade, occupation, or business of the same nature as the work performed,” The National Law Review explains.
There’s very little genuine sharing going on in the so-called sharing economy. Sharing/gig economy unicorn DoorDash had to change its tipping model after it was discovered that tips that were meant to go to the workers were being kept by the company. Even after they promised to change that, Vox reported that DoorDash was still pocketing workers’ tips, almost a month after it promised to stop. Now it’s Instacart that’s in the crosshairs for taking that page from the Bad Behavior in Tech playbook. “’You have demonstrated a pattern of behavior as CEO of eviscerating our pay and pirating our tips,’” Instacart independent contractors wrote in an open letter to CEO Apoorva Mehta, ahead of a three-day walkout, Mashable reports.
Meanwhile, according to Forbes, California Destroys $1 Trillion Gig Economy With New Law.