A Hitch In The 1099 Economy?
by Miki Saxon
Last fall I asked if the 1099 economy might crash and burn considering the IRS rules governing freelancers and contractors.
I think that companies, like Uber and Instacart, etc., whose success is built on the basis that their workers aren’t actually employees are in for a shock one of these days.
But it’s more than my opinion.
Way back in 2013 a group of strippers brought a class-action lawsuit claiming employee status — and won.
Rick’s, a chain of “upscale adult nightclubs serving primarily businessmen and professionals” based in Texas, argued that its dancers were independent contractors, more akin to stand-up comedians than fry cooks. But Judge Engelmayer was not persuaded. He said the list of rules Rick’s laid down could be described as “micromanagement.”
Rick’s provided “Entertainer Guidelines,” including required heel height and when to strip; the company also set prices.
Uber tells its drivers what to wear, car requirements and sets prices, as do other 1099 employers.
One day soon, a few fed-up drivers are going to file suit and their lawyers will likely cite the judgment against Rick’s.
When that happens, compensation will change, as it did years ago with Microsoft’s contract developers (who were also awarded stock retroactively), and, hopefully, the playing fields will be leveled.
I, for one, am looking forward to it.
Image credit: HeadOvMetal
February 4th, 2015 at 1:15 am
[…] couple of weeks ago I wrote of clouds on the horizon in the form of a class-action lawsuit from 2009 that could affect not only Uber, but every business […]