Uber’s Proposed “Third Way”: How Should Gig Workers Be Classified?

Uber’s Proposed “Third Way”: How Should Gig Workers Be Classified?

  • Case
  • Teaching Notes

This case covers the ongoing struggle in classifying gig economy workers, which has been compounded by a recent California court case that claims Uber and Lyft are violating a state law that requires them to classify their drivers as employees with standard benefits, wages, and protections. However, the companies are adamant that their drivers should remain independent contractors and claim that the law would render them unprofitable, with Uber’s CEO going so far as to propose in a recent op-ed a “third way” of labor classification that only negligibly improves on what drivers are currently offered. With the gig economy expected to keep expanding, the court’s decision on this case will likely impact worker classification and labor protections beyond California.

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