Proposal would expand definition of independent contractors

In debate in the Nebraska Legislature Thursday, lawmakers considered expanding the definition of who would be considered independent contractors as opposed to employees.

It was the second round of consideration for Sen. Bob Hallstrom’s proposal (LB229) to classify people like Uber and Lyft drivers as independent contractors. That’s already the case, but it’s been challenged in other states, so Hallstrom wants to make it clear in state law. On Thursday, he proposed an amendment that would extend it to certain delivery drivers.

“This would apply both to Uber, Lyft and companies like DoorDash that deliver parcels as opposed to people,” Hallstrom said.

Hallstrom distributed a letter from an Uber driver who said he values the flexibility being an independent contractor gives him to pursue his other jobs as a theater employee and a traveling musician. Hallstrom said many drivers feel the same way.

“The people that are Uber drivers are the ones that are looking at this issue, and they're saying, ‘We're currently treated as independent contractors. We are independent contractors. We'd like to have more solid footing in the status as independent contractors. Why would anybody oppose this? And Senator Holstrom and the Legislature have our backs,'” he said.

Sen. Dunixi Guereca opposed the bill, which is supported by Uber. Guereca said he didn’t blame the company for wanting to make sure its drivers continue to be considered independent contractors.

“They (the drivers) get hurt on the job, no workers compensation,” Guereca said. "They suddenly lose access to their account and to these apps, no unemployment benefits. If you're a single parent who drives for 60 hours a week and you're still struggling to make ends meet, no minimum wage. It's pretty good deal. I'd lock that in."

And Sen. John Cavanaugh said the bill is part of a troubling economic trend.

“We’re creating an economy that makes it impossible for someone to work one job and be able to live their life,” Cavanaugh said. "That's what this bill is helping to set up, continuing that proliferation of corporations extracting their wealth on the backs of the working people who can't afford to live with one job."

The Legislature adjourned for the day without reaching votes on Hallstrom’s amendment or his bill. Lawmakers are now off on a four-day recess, and will resume work Tuesday.

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