Lyft lays out financial risks associated with reclassifying drivers

TechCrunch | 3/1/2019 | Staff
ajoy26 (Posted by) Level 3
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In Lyft’s S-1 this morning, the company laid out the potential consequences for converting its drivers from independent contractors to W-2 employees. This, of course, has been an ongoing conversation within the gig economy.

Those who work as 1099 contractors can set their own schedules, and decide when, where and how much they want to work. For employers, bringing on 1099 contractors means they can avoid paying taxes, overtime pay, benefits and workers’ compensation.

Lyft - Notes - S-1 - Conversation - Number

As Lyft notes in the S-1, this conversation has resulted in a number of lawsuits, arbitration proceedings, government investigations and more.

“The tests governing whether a driver is an independent contractor or an employee vary by governing law and are typically highly fact sensitive,” Lyft states in its S-1. “Laws and regulations that govern the status and misclassification of independent contractors are subject to changes and divergent interpretations by various authorities which can create uncertainty and unpredictability for us. We continue to...
(Excerpt) Read more at: TechCrunch
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