In a recent decision within the Florida courts, Uber was victorious in a misclassification case that left Uber drivers classified as independent contractors and not employees. It speaks to the ongoing battle within the country’s burgeoning gig economy—where contractors want the same rights as salaried employees within companies, especially if the scope of work is the same. In Uber’s case and other similar companies like Lyft, the growing problem is how to reconcile between workers who receive employee benefits, such as healthcare, versus those who do not, when, on the outside, they look the same.
Issues arose during the ACA’s crackdown of full-time equivalent employee hours. While in many cases Uber drivers don’t clock enough quantifiable hours to be considered “full-time,” many drivers actually do. In fact, some go through stretches of weeks to months, where clocking in 30+ hours is their norm. The employer mandate of the Affordable Care Act may qualify these drivers for the offer of healthcare during those stretches.
Uber’s argument from the start was that their drivers are independent contractors and not employees, so benefits like healthcare should not be on the table. However, in states like California and Massachusetts—which saw proposed settlements of $100 million to resolve without a judicial resolution, which were ultimately rejected by the courts—the rights of the drivers remain a serious question.
At least for now, such is not the case in Florida, which can impact the trend for the rest of the gig economy for the state. So what happens if the Affordable Care Act is repealed without a replacement and there is no protection for Uber drivers or any other participants in the gig economy?
What will happen to their healthcare, as Uber drivers run an arguably significant risk of injury due to the nature of their jobs. If they are deemed employees, the ACA entitles them to an offer of affordable healthcare or have access to subsidies. If not, under the ACA, they still have access to subsidies on the healthcare exchanges. It’s an unsettled issue nationwide that’s begging for federal intervention.
And what about Uber?
As a precautionary measure should they have all drivers complete the requisite 1094/1095 tax forms under the Affordable Care Act?
Or should they apparently continue to ignore it until it becomes a problem?
While Uber is not the only company whose radar should be up, as an apparently progressive company, perhaps Uber may want to be the company to set precedent in favor of worker rights.
