Yesterday, the California Labor Commission ruled that all Uber Drivers are to be categorized as employees rather than contractors. We’re not going to get into the details of this particular case or the claims by Barbara Ann Berwick – there are many articles that do that already. But what we do want to discuss is why this totally sucks for the millions of millennials that are filling ‘On-Demand’ jobs like those provided by Uber.
It is well documented that Millennials are currently filling 44% of the On-Demand workforce which is 2.7MM strong overall. And while you may speculate that that is due to a lack of full-time/salaried jobs, many reports (like this one by KPCB) are finding that it is actually by choice. 19% of Millennials said they value Flexible Working Hours as most important when evaluating an employer.
So why does it suck that California has now set a precedent that share economy startups like Uber must categorize workers as employees? Well, for now, it doesn’t – the ruling only applies to Ms. Berwick, was ruled by the state of California, and is already seeing it’s first round of appeals. BUT, if the ruling stands there could be major implications for the Uber workforce.
“Every single month, Uber is adding hundreds of thousands of drivers around the world” said chief executive Travis Kalanick. That flexibility that most Uber employees love.