Type and degree of instruction given, such as when and where to work and what supplies to use; performance evaluations and disciplineOpportunity for profit or loss; investment in equipment; freedom to provide services to other clients; and method of payment Contract; permanence of relationship; extent to which services are central to the business; and benefits, while simpler, is tougher.
governing drivers' behavior; violations can lead to account suspension or deactivation in Uber's sole discretion. To reactivate, drivers must complete a "quality improvement course" selected by Uber. Drivers are paid by the ride and are responsible for expenses, including vehicle, maintenance, gas, insurance, phone, and data. Driver contracts are not exclusive — they can also drive for competitors such as Lyft. Many drivers also work for black car services or taxi companies.
The core difference between the tests — and the reason for the fuss over AB5 — is part two, which requires that contractors' work be "outside the hiring entity's usual course or type of business." To meet this element, Uber must — and has been trying to — show that drivers' services are outside of its usual course or type of business.
If Uber and Lyft end up reclassifying drivers as employees, drivers will likely have to choose between working for one or the other, and increased labor costs will likely be passed on to riders.
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