Recent changes to the pay structures of Lyft Inc. and DoorDash Inc. are adding fuel to the ongoing debate surrounding the independent contractor model within federal and state policy circles. This model underpins the gig economy, which has been around for over a decade.
The changes, specific to how ride-hailing company, Lyft, and food delivery firm, DoorDash, compensate their ‘workers’, bring a spotlight once again to the critical element of pay structure within the larger discussion on employee versus independent contractor status.
Earlier this February, Lyft revealed it would now ensure drivers receive a minimum of 70% of the fares paid by customers each week following all external fees. Lyft will also provide an earnings summary, highlighting all fee deductions, among other changes. In contrast, last July, DoorDash provided its drivers with the option to be either paid by the hour or per delivery.
This represents a significant shift in earnings policies by two leading gig economy firms, echoing the demands made by workers across various states and even at a local level.
The issue of gig worker classification has been a contentious legal and societal topic, with gig economy companies facing growing pressure to revise their worker pay structures and benefits. Meanwhile, these ongoing changes could potentially impact the larger discourse regarding the future of the gig economy and the rights of workers engaged within it.
This insightful report from Bloomberg Law dives deeper into this important issue affecting the legal, corporate and societal realms.