Instead, Khosrowshahi believes new legislation is needed to create a “third way” for gig workers. “Our current system is binary, which means that every time a company provides additional benefits to independent workers, the less independent they become. That creates more uncertainty and risk for the company, which is a major reason why we need new laws and can not act entirely on our own, “Khosrowshahi writes.
Perhaps the most important proposal is to oblige “gig-economy companies” like Uber to set up a benefit fund that allows employees to sign up for specific things they need, such as paid leave or health care. “Independent workers in any state that prescribes this law can take out money for every hour of work they put in,” Khosrowshahi writes. “All gig companies should participate so that workers can build benefits even when switching between apps.”
Uber also wants to provide its drivers with occupational accident insurance to cover medical expenses and payments for the disabled if workers are injured on the job. As with the Uber benefit fund, the company is asking state governments to require this for companies in the ride-sharing sector.
It’s probably a smart move, but Uber could do just that right now without the need for legislation – asking states to mandate such funds would push Uber back against things like AB5, the California law that went into effect in early 2020. classified Uber and Lyft drivers as employees not as contractors. Both California and Massachusetts have ongoing lawsuits surrounding Uber’s classification of their drivers.
Other calls for action in the Uber document were specific to Uber and other companies in the sector; points such as a nationwide survey of drivers and people of delivery and transparency on what workers are expected to earn are less relevant to the “employee vs. contractor” debate. But the items that Uber wants states to legislate are part of the idea of a new class of employee that has the flexibility that Uber claims its drivers want and also some more financial security. These ideas may have some merit, but it’s important to note again that Uber does not have to wait for the government to mandate them to put them into action. Government intervention may help other companies adopt the same policy, but it does not sound like there is anything that Uber is leading the way by putting their money where its mouth is.
