Skip to main content

Uber CEO Dara Khosrowshahi says gig economy companies should be required to establish 'benefits funds' for workers instead of treating them as full-time employees (UBER)

* Uber CEO Dara Khosrowshahi said companies like Uber should be required by law to provide "benefits funds" to gig workers in a New York Times op-ed published Monday. * Khosrowshahi said the gig-work employment system is "outdated and unfair," and called for laws that would require companies to provide gig workers more benefits without classifying them as full-time employees. * Gig workers have called on companies like Uber to give gig workers more benefits that full-time employees receive, like health insurance. Uber is facing several lawsuits in California seeking full-time status for drivers. * Uber opposes classifying gig workers as full-time employees, and Khosrowshahi's proposal is meant as an alternate solution. * Visit Business Insider's homepage for more stories. Uber CEO Dara Khosrowshahi proposed a new model for gig work in a New York Times op-ed Monday, arguing that companies like Uber should be required by law to provide "benefits funds" to drivers without classifying them as full-time employees. The ridesharing company is facing mounting pressure from drivers and labor activists to extend more benefits to gig workers. A California law passed this year reclassifies Uber drivers as full-time workers, and the company now faces several lawsuits alleging that it failed to pay drivers minimum wage, sick pay, unemployment, and other benefits guaranteed to employees under state law. Uber has argued that the law, known as AB-5, doesn't apply to them, and the company is now supporting a ballot initiative in California that would explicitly classify app-based drivers contractors rather than full-time employees. Even though Uber doesn't want to treat its drivers as full-time employees, Khosrowshahi said believes they're getting the short end of the stick. "Our current employment system is outdated and unfair," he wrote. "It forces every worker to choose between being an employee with more benefits but less flexibility, or an independent contractor with more flexibility but almost no safety net." Khosrowshahi says lawmakers should require Uber and other gig economy companies to establish "benefits funds" that would allow workers to take out cash for every hour of work they put in. Under his proposed system, a driver working 35 hours per week could access around $1,350 in benefits per year. He also argues that those benefits should be provided in cash that workers could use for anything. While labor activists have said companies like Uber and Lyft should be required to provide health insurance to drivers, Khosrowshahi said that most Uber drivers already have health insurance through another job or through the Affordable Care Act. Beyond the question of how to classify workers, Khosrowshahi argued that anti-discrimination laws for gig workers are needed. "We also need new laws that prevent companies from denying independent workers opportunities based on their race, religion, gender, sexual orientation or any other protected characteristic," he wrote. "Shockingly, that fundamental measure of equality is not fully enshrined into law for all American workers today." Join the conversation about this story » NOW WATCH: Why Pikes Peak is the most dangerous racetrack in America
https://bit.ly/3ixA2Rj

Popular posts from this blog

A full breakdown of what channels you get with every Sling TV package, plus all the add-ons

  * Sling is one of the most affordable cord-cutting services on the market, offering two packages —  Orange and Blue — with 30+ channels starting at $30 a month or combined for $45 a month. * Orange offers the Disney Channel and ESPN, while Blue offers a slate of Fox channels, NBC, Bravo, and Discovery. Both Orange and Blue offer CNN, TBS, Food Network, and BBC America. * You can also add on multi-channel packages, like Sports Extras, Kids Extras, or News Extras, starting at $5 a month. Premium add-ons, like Showtime, Starz, and Epix, are also available for an additional monthly charge.  * If you're new to Sling TV, you can receive a free 14-day trial for a limited time. * Here's a complete breakdown of the channels offered on each Sling package.    If you're hoping to get the most bang for your buck once you cut the cord with your cable subscription, Sling is one of the most affordable live streaming services on the market.  The service has two packages with ...
Read more

Here's an exclusive look at the pitch deck London fintech Lanistar used to raise $19 million at a $190 million valuation

* London-based fintech startup Lanistar has raised a £15 million ($19 million) funding round from Milaya Capital.  * Founded in 2019, Lanistar is building a personal financial management platform that will launch later in 2020.  * "We're expecting a huge amount of growth upon our launch and have already seen strong interest among our sign ups," Gurhan Kiziloz, founder and CEO of Lanistar, told Business Insider. * Visit Business Insider's homepage for more stories.  The coronavirus lockdown in the UK has brought the importance of managing money into sharp relief. A recent study from Money.com shows that 71% of UK households have saved cash during lockdown, and, with uncertainty about jobs and the economy looming, money management is now front of mind for many. Lanistar, a banking platform with a focus on personal finance, is one company offering tools for consumers to better manage their money. It has just raised a £15 million ($19 million) funding round from Mil...
Read more

Why an early exec quit unicorn food delivery startup Deliveroo to launch a food business in the middle of a pandemic

* A former Deliveroo exec has launched a market food hall startup in the middle of COVID-19. * Dan Warne was managing director of the unicorn startup until 2019, but has now launched Sessions Market as a community food hall concept to rejuvenate UK towns after the pandemic. * Warne says he hopes to bring his experience from Deliveroo, particularly about customer behavior, to the analogue world of food halls. * The first venue, Shelter Hall on Brighton seafront, launches July 4. * Visit Business Insider's homepage for more stories. On Saturday, the UK's bars, restaurants, and cinemas will fling their doors open to customers for the first time since a strict lockdown commenced in late March. Given continued public health concerns around the coronavirus pandemic, it might be unwise to open a new food business right now. But Dan Warne, a former high-level executive at British unicorn startup Deliveroo, has launched Sessions Market, a series of community-orientated food hal...
Read more