As technology progresses, so too must society. However, technology goes much faster than bureaucracy and with that disconnect comes lots of problems. Uber has developed a platform that allows people to become their own bosses by taking their car out and giving rides to those who need them. It's typically cheaper and more convenient than a cab, allowing people to simply input what they need into an app and then have a driver come straight to them. But exactly what does all this mean for the drivers in terms of worker's protection?
Calling someone a contractor rather than an employee allows you to get out of a whole slew of federal requirements regarding fair practices. Uber has slapped that label onto their drivers under the guise that it makes the driver their own C.E.O of their transportation business, but some people are challenging their judgment here. Alaska has ruled that Uber needs to start treating their drivers like employees, meaning (among other things) that if people are injured on the job they'd need to provide worker's compensation according to state law.
In the light of all the new ways to work, it opens up a myriad of questions as to how people should be treated, and both federal and state governments seem to need to push through the bureaucracy to start making decisions faster due to the immediate nature of technology. Uber paid $77,900 to the Department of Labor because of their assumptions, and this certainly won't be the last time something like this comes up.
Erring on the side of caution probably seemed far too costly for Uber, but the time and effort that was put into this settlement was likely not something they could really afford either. The Alaskan drivers who signed up to work for Uber likely had no idea what their rights were, and many of them probably still don't know. If you're operating in something of a legal grey matter like Uber is, you need to be aware that all jobs come with their fair share of risks. The money you save today could end up costing you much more down the line.