Small business: How you classify your employees matters in a big way

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Are Uber drivers small-business owners? Or are they exploited employees?

Published 4:18 PM EDT Jun 18, 2019

As a result, many companies, not just tech companies, intentionally choose to classify – or misclassify – workers as independent contractors.► Services using platforms to provide services. Think Uber, Lyft, Doordash, Grubhub and Instacart, where the workers are the ones providing the service sold by the company and, though workers might set their own hours, the company sets prices and terms.

From the time I started in business more than two decades ago, this question of how to classify workers has stymied both larger and small businesses. That’s because having just these two classifications – employee or independent contractor – leaves out too many people. Many Lyft and Uber drivers I used to talk to would say they started driving because it met their need for more control, especially over their time. But, increasingly, they tell me that they have little or no meaningful control – the companies set the terms and prices, control what kind of cars they must have and they have to work certain times to make even minimum wage.

 

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They’re often just deadbeats who can’t hold a real job. Or illegals using phony documents. I have an undocumented hombre who uses his documented brothers info. Uber employs a lot of shady, “off the books” type people.

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