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August 10, 2020 02:03 pm

Uber CEO Calls For 'Benefits Funds' for Gig Workers

Uber CEO Dara Khosrowshahi on Monday said its drivers should get the "best of both worlds" -- benefits and work flexibility. In an op-ed published in The New York Times, Khosrowshahi proposed that lawmakers require gig economy companies to create benefits funds, which would "give workers cash that they can use for the benefits they want, like health insurance or paid time off." From a report: "Our current employment system is outdated and unfair. It forces every worker to choose between being an employee with more benefits but less flexibility, or an independent contractor with more flexibility but almost no safety net," wrote Khosrowshahi. "It's time to move beyond this false choice." The op-ed comes as Uber and rival ride-hailing company Lyft face a possible injunction in California that would force them to reclassify their drivers as employees. Currently, drivers are classified as independent contractors, which means they pay for their own expenses, such as gas, car maintenance and insurance. Drivers also don't have benefits like health care and sick leave.

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