137 - Employees or Contractors? Gig Economy’s Labor Crisis

Fortt Knox

Days ago California lawmakers passed a bill, AB5, that would force more companies to treat more workers as employees, not contractors. What’s the big deal?

The gig economy. Whether it’s Uber and Lyft, or Postmates and Doordash, or TaskRabbit and Instacart, a slew of companies have grown up in the smartphone era with a radical idea. When just about everyone has a smartphone and a credit card, you can assemble a workforce on a moment’s notice, pay workers electronically, and let them be independent contractors. They can work as much or as little as they want!

But just because employers can do this doesn’t mean they should. And that’s what we’re going to debate today.

With me this week: Two professionals who have driven for Uber and Lyft and have different opinions about what should happen here.

Karim Bayumi is out of LA. He says drivers like him – he’s driven 5 to 6 days a week for the platforms – deserve the protections of employee status, and the companies can’t be trusted to provide that without a law.

Harry Campbell is a former part-time Uber and Lyft driver who’s known as the Rideshare Guy. He’s got a blog that focuses on the driver community, a YouTube channel, a podcast – and he says forcing companies to treat drivers as employees is the wrong way to go.