By Tyler Durden While Uber and Lyft may have found some respite on Election Day, with California voters allowing the two companies to continue to function as "gig" companies that don't need to take on the liabilities of employing their independent contractors, that doesn't mean the ridesharing giants won't face continued business model pressures elsewhere in the … [Read more...] about New Jersey Slaps Lyft With $16 Million Tax Bill, Continuing Pressure On “Gig Economy” Business Model
Employment
Uber, Lyft Shares Soar After California Voters Pass Proposition 22
By Tyler Durden According to the Associated Press, gig economy companies Uber Technologies Inc., Lyft Inc., and DoorDash Inc. have prevailed in their expensive quest to keep drivers classified as independent contractors. California voters approved Proposition 22 Tuesday evening, which would exempt gig-economy companies from a state law requiring them to classify their … [Read more...] about Uber, Lyft Shares Soar After California Voters Pass Proposition 22
Ride Sharing and the Absurdity of “Protecting” Workers Out of a Job
By Raymond C. Niles Lyft and Uber have gotten a temporary reprieve and have been walked back from the gallows. A California appeals court has issued a temporary restraining order barring enforcement of California law AB5, which would have forced both companies to reclassify their drivers as employees, rather than as independent contractors. Both companies had planned to shut … [Read more...] about Ride Sharing and the Absurdity of “Protecting” Workers Out of a Job
Uber Warns Of 111% Price Hikes After California Judge Rules Drivers Are Employees
By Tyler Durden Uber has warned that it may have to hike prices up to 111%, after a San Francisco judge ruled on Monday that the ride-sharing company, as well as its competitor Lyft, must classify their drivers as employees - a move which will disproportionately affect low-income customers. The ruling means that the companies will be required to provide various benefits … [Read more...] about Uber Warns Of 111% Price Hikes After California Judge Rules Drivers Are Employees
Three Ways that Workers Can Be Underpaid
By Donald J. Boudreaux There are three ways that a worker – call him Joe – can legitimately be said to be underpaid. One way – the way that is identified in modern economics textbooks – is for Joe’s pay (wage plus fringe benefits) to be below the value of his marginal product (“VMP”). If Joe is one of four janitors employed by Acme Inc. and is – like his co-workers – paid … [Read more...] about Three Ways that Workers Can Be Underpaid