App-based workers are often classified as independent contractors, which means fewer legal protections. Classification rules and local laws are changing and vary by place.
Classification
Many platforms treat drivers and couriers as contractors. Courts and agencies have reached different conclusions, and some states and cities have rules specific to gig work, including minimum pay for certain platforms. Check your location.
Issues workers face
- Low pay after expenses.
- Deactivation without clear reasons.
- Tip policies.
- Accident and injury coverage.
- Arbitration clauses and limits on lawsuits.
- Self-employment taxes and quarterly estimates.
What you can do
- Track miles, expenses and earnings for taxes.
- Read terms, especially arbitration and opt-out options.
- Keep screenshots of deactivation notices and appeal in writing.
- Understand insurance coverage while working.
- File complaints with your state labor agency if you believe pay laws were violated.
- Join worker organizations or talk to an employment attorney.
Taxes
Contractors pay self-employment tax and may deduct business expenses. Make quarterly estimated payments to avoid penalties.
Frequently asked questions
Can I get unemployment benefits?
Some states offered special programs, but availability varies.
Do platforms have to pay for my insurance?
Often only limited coverage applies during certain periods.