The gig economy is growing quickly and businesses need to be aware of all the challenges that come with the shifting landscape. From a variety of state laws, to requirements for independent contractors, to the benefits workers are looking for, there is much to consider. In addition to outlining many of these challenges below, here is a snapshot of what workers need to know when looking to work with Uber.
The gig economy is growing quickly and businesses need to be aware of all the challenges that come with the shifting landscape. From a variety of state laws, to requirements for independent contractors, to the benefits workers are looking for, there is much to consider. In addition to outlining many of these challenges below, here is a snapshot of what workers need to know when looking to work with Uber.
Age
- Uber requires drivers to be at least 21 to drive for the company, but there may be more stringent requirements in some cities or states.
- While Uber makes it relatively easy to find details on the vehicle requirements for driving in various cities, for example, here is the information on San Francisco, the details on age requirements does not appear to be provided by the company.
- Uber does require that all drivers have a full year of licensing history, and for drivers that are under age 23, they must have three years of licensing history.
To provide insights on the laws, requirements, and challenges that drivers of Uber need to be aware of, we examined three locations: San Francisco, CA; Nashville, TN; and Boston, MA.
San Francisco, CA
- California enacted the AB5 law on January 1, 2020, which makes it more difficult for companies to classify workers as independent contractors. As a result of that law, Uber has made changes to their model.
- Under the law, workers need to meet three criteria in order to be classified as a contractor, rather than an employee. One of these criteria is to be free from company control, so Uber is testing a program that gives drivers the ability to set their own rates and to reject rides without penalty.
- In California, the state regulates rideshare companies, while cities and counties regulate taxis. Therefore, any requirements in San Francisco would be the same throughout the state, as localities are not able to implement their own laws. The California Public Utilities Commission (CPUC) is responsible for making the rules in the state.
- The San Francisco City Attorney's office has asked Lyft and Uber to provide some data on their business in the city, but so far Uber has refused to cooperate. Because rideshare companies are contributing to major traffic headaches in the region, the city attorney is considering a range of legal actions that would allow them to get more data and provide some type of local regulation.
- San Francisco is currently considering a per ride tax that would raise money for road improvements. This proposal will be on the ballot in November so voters can decide whether to move forward with the fee.
- In October 2017, SB182 was signed into law by the governor of California. The law requires drivers of transportation network companies (TNC) to obtain a business license if they worked on a driving platform for more than 30 days in the previous year. This license is only required if stated by the local jurisdiction where the driver lives. Uber does notify their drivers that this may be required, but does not provide local guidance on specific cities within the state of California.
- Although San Francisco was requiring all TNC drivers to obtain a business license in the city, this was temporarily suspended in April 2018 as a lawsuit by the city attorney makes its way through the courts.
Nashville, TN
- Uber provides very little data on the requirements for driving in Nashville.
- According to a post by UberKit, Nashville does not have any additional age requirements beyond those implemented by Uber itself.
- Tennessee passed a state-wide law in 2016 that set up the rules that must be followed by TNCs. While many of these rules were about insurance and what the responsibilities were in case of an accident, two items directly impacted how drivers conduct their business. The first requires that no business is conducted in cash, and the second is that drivers must keep two years of trip records. There was nothing in the law requiring business licenses or permits.
Boston, MA
- As with Nashville, and other cities, Uber provides little data on the requirements for driving in Boston.
- The Joint Transportation Committee of the Massachusetts legislature is considering a proposal by the governor that would require companies such as Uber and Lyft to provide data on when and where passengers are being picked up and dropped off. The goal would be to obtain more information on where the companies are operating and how much they may be contributing to greenhouse gas emissions.
- Another component of the proposal would be implementing fines and possible jail time for drivers who allow other unapproved individuals to drive using their account. This practice is known as account-renting.
- Also under consideration are increased penalties on drivers who do not keep up with the requirements already in place, such as inspections, background checks and visible decals; and the possibility of allowing localities to impose their own fees on top of the $0.20 currently charged by the state.
