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the problem is that the "independent contractor" category, as most of us know it, doesn't really exist. Nearly all "independent contractor" jobs, in the eyes of the IRS, are actually employee jobs, if you get audited. Now, employers still want to treat employees like independent contractors, right? So what does this mean? As a computer nerd, this means that if I work as an independent contractor for a company with a legal department, I have to go through a body shop, a company that takes 30-50% off the top, and then wants to hire me as a W2, of course, but without benefits. Which is a pain in the ass, because that means the benefits I buy for myself need to come out of post-tax money. (Now, if you find an especially shady body shop, they will often let you go "corp-to-corp" - usually they tell you that they will be telling the client that you are a W2, as that provides better protection to the client. But you can find some honest body shops that will let you go corp to corp, especially if you can demonstrate insurance and revenue for your company that isn't you.) Of course, labor laws are there to protect the low end, and driving is one of the most dangerous jobs that you can get in a modern economy, so I certainly agree that uber drivers need some sort of "workers comp" like disability insurance, just because their job is so dangerous. I'm just pointing out that telling companies that they can't hire contractors directly doesn't always end up working out better for the employees. |