New Laws Will Not Allow Tech Companies To Classify Their Employees As Independent Contractors Easily

Ridesharing services such as Uber and Lyft have managed to change the face of the transportation industry around the world. They have made a change to the way that taxi services operate and have even put quite a few of them out of business. During this time, however, the company has classified its drivers as independent contractors and not employees. This has allowed the company to not offer benefits to individuals who drive for them. This is set to potentially change however as a court ruling in the state of California issued by the California Supreme Court has made it more difficult to classify individuals as independent contractors for corporations.
https://arstechnica.com/tech-policy/2018/05/new-court-ruling-could-force-uber-lyft-to-convert-drivers-to-employees/
This court ruling was made in an effort to create a better working environment for those who chose to drive for the companies. While the ride service has allowed much cheaper and on-demand transportation for individuals who are looking to get from point A to point B in the most cost-effective manner, it has also been known not to serve the individuals who drive in the best way.
Individuals who are employed as independent contractors do not receive any health, retirement, unemployment, or other benefits that are associated with full-time employment. Uber has referred to its drivers as driver partners. These individuals are what allows the company to operate.
This should allow individuals who drive for the companies to receive much better care from the corporations that employ them. The new law will not allow companies to classify their workers as contractors easily. They will only be able to classify workers as contractors if they are able to meet specific requirements. These requirements include that the worker is able to be free from the control and direction of the hiring company in connection with the performance of the work. The worker also must perform work that is outside the usual course of the hiring company’s business and in addition the worker must customarily engage in an independently established trade or business.
These new laws could make it more difficult for startup companies in California to get off of the ground as they will be forced to provide greater levels of benefits to their employees.

Tech Companies like Snapchat Face Rough Transition Periods After Going Public

Online tech companies are facing all kind of challenges. Facebook is facing the challenge of the privacy issue where data is being collected on the habits of Internet users. Sites like Dropbox are facing competition that comes from other cloud storage companies. There always seems to be so many different things that can affect tech companies in a negative way.
Snapchat is one such company that has seen a lot of changes in recent months. This company was a private company for a long time, but it eventually went public. After it went public it would become a company that would face a lot of challenges because it did not easily make money the way Facebook did. It was a company that became much more complex because it was not doing a lot of advertising. There were not as many ways to bring in revenue.

What essentially happened is a decrease in the number of users once this company went public, but it is not all based entirely on the lack of advertising opportunities. A random tweet from Kylie Jenner about how she did not use Snapchat as much as before was something that would also send the stock price of Snapchat down tremendously. Another thing where recent changes that were made to the software platform. All of these things would be contributed to the way that this app has become utilized less by people that are interested in this type of social media. There are so many other possibilities that exist for social media so it becomes difficult for an app like Snapchat to compete when a popular reality star like Kylie Jenner has made these type of comments.

She did go on to say that this was still an app that she loved, but it contradicts with the fact that she barely uses this out anymore. More people are utilizing Twitter because it only involves a single comment. More people are using Instagram to post pics. Snapchat, as cool as it may have been to hide text messages, has become something of an app that has been put on the back burner. The fact that it never became an app that could generate a lot of revenue made it even less likely to grow.