Republicans in the US Propose New Benefits for Gig Workers: What Will Change.

The conflict over the classification of workers has been ongoing for decades, but a good starting point is 2006, when a group of FedEx Home Delivery drivers in Massachusetts voted to form a union. The company refused to negotiate, arguing that the drivers were independent contractors and therefore not entitled to unionize. Although the National Labor Relations Board sided with the drivers in 2007, determining that they were employees with the right to unionize, the D.C. Circuit Court overturned this decision in 2009, ruling that the National Labor Relations Board 'lacks absolute jurisdiction over independent contractors.'

Not losing confidence, the Obama administration decided in favor of another group of FedEx drivers in 2014, declaring them employees rather than contractors. (The National Labor Relations Board decisions, aside from those made by the U.S. Supreme Court, are not considered binding). By 2015, the Obama Department of Labor also issued a memo clarifying that most workers should be classified as employees. But the Trump administration rolled back both efforts, and in 2017 the D.C. Circuit once again sided with FedEx.

Turning Points

According to Vox: Political changes began in 2018 when the California Supreme Court made a landmark ruling that significantly limited companies' ability to classify workers as contractors. In response, California lawmakers passed a law in 2019 known as AB 5, which effectively codified the strict 'ABC Test' - a standard that categorizes most workers as employees. Under the ABC Test, a person can only be considered a contractor if their work falls outside the usual course of the company’s business.

Companies fought back. In 2020, tech giants like Uber, Lyft, and DoorDash successfully spent $200 million on a California referendum to exempt drivers from the requirements of AB 5 in exchange for commitments from the companies to provide contractors with some limited benefits. The giants also turned their attention to outside the state of California, actively working to prevent the spread of laws similar to AB 5.

A Ukrainian journalist stylishly and vividly recounted the years-long conflict over the classification of FedEx workers, highlighting the various government decisions over the years. The discussion of legislative and judicial decisions aimed at addressing the issue of 'independent contractor' in the US illustrates the complexity of the situation and the struggle between businesses and workers for recognition of their status in the labor market.