The Distinction Between an Employee and an Entrepreneur
The distinction between an employee and an entrepreneur is significant for two reasons. First, with regard to federal employment taxes and income withholding taxes (Leberstein 1). Second, the employee is protected by labor laws like the Equal Pay Act (EPA), the Age Discrimination in Employment Act of 1967, and the American with Disabilities Act (ADA). The court must decide whether there is an employer-employee relationship before taking any action against a person who has violated any employment regulations. The right to control test is used by the Internal Revenue Service (IRS) to evaluate whether a person is an independent contractor or an employee (Leberstein 2). On the other hand, the court uses the multiple-factor test and places greater weight on the right to control the way the work is performed. Besides, the court looks for any contract that implies or expresses an employee-employer relationship.
TaskRabbit
TaskRabbit is an online platform that connects freelance labor with local demand. It allows clients to instantly find people to run their everyday errands such as cleaning, home maintenance, moving, handyman work as well as delivery ("TaskRabbit Connects You to Safe and Reliable Help in Your Neighborhood"). It is registered under private companies, and Leah Busque founded the company in 2008. It has its headquarters in San-Francisco in the United States of America.
How it Works
The first step involves opening an account with the company. If one needs to access the services rendered by TaskRabbit, he or she should visit the company's website and sign in as a Tasker or a customer. Alternatively, one can download the company's app and identify their needs ("TaskRabbit Connects You to Safe and Reliable Help in Your Neighborhood"). The customer describes the task he or she needs to be done and selects a convenient date and time that the task should be performed. Besides, the customer should give details such as the address, contacts as well as the payment method he or she will use. After selecting the task that the customer requires services for, he or she selects from the list of qualified and vetted tasker for the job. The taskers are usually categorized with the rate they charge per hour. The customer chats with the Tasker, and they agree on how the client wants his or her job done.
The company is not a party to the contract between the customer and the Tasker. Payments are done directly from the customer to the Tasker. Although the company may pay the tasker if the client fails to honor his or her contract, it is not obligated. Therefore, TaskRabbit is just an online platform that taskers and clients meet ("TaskRabbit Connects You to Safe and Reliable Help in Your Neighborhood"). As far as the billing is concerned, the users of TaskRabbit both the clients and the Tasker provides their credit cards and bank account to the company. Once a task is complete, the customers are required to pay the amount of invoice which comprises the task payment, any out of pocket that the tasker used in the course of doing the job, any tips or gratuity, as well as the platform charges.
The company disclaims expressly if any liability related to the users of the platform. Therefore, if the tasker is working in the home of a client and he is injured, the company will not be involved in any way. They are not a party to the contract between the client and the Tasker. On the other hand, the company provides a protection of up to $1,000,000 for any damages that may arise due to the negligence of the tasker to the property of the client or bodily injury to the client, Tasker or third party obtained during a performance of a task by a tasker from the TaskRabbit platform. Another protection of up to $10,000 is given for any theft done by a tasker in the line of duty to both the clients and the third parties ("TaskRabbit Connects You to Safe and Reliable Help in Your Neighborhood").
The Taskers at TaskRabbit
From the above analysis, it is evident that the Taskers at TaskRabbit company are independent contractor or entrepreneurs. They have full control of how their job is performed. All that the company does is connect them with clients. The 12 terms and condition of the company expressly states 'the company does not perform tasks and does not employ individuals to perform tasks' ("TaskRabbit Connects You to Safe and Reliable Help in Your Neighborhood"). The users assume liability for proper classification for the user as provided by the law. However, the insurance coverage provided by the company shows that the Taskers are employees rather than entrepreneurs (Jost, 311). The company accepts vicarious liability for its employees. Besides, the company collects the money on behalf of the Tasker and sends the money to them. If the money was directly sent to the tasker by the client and the company sends the Tasker the invoice for platform charges and fee, then we could argue that they are independent contractors.
Conclusion
In conclusion, the Taskers are not independent contractors but employees of the company. All the company does is expressly deny that the Taskers are employees but their actions and terms of work prove otherwise. I believe they put the disclaimer to avoid legal actions against the company, but the independence of the Taskers lie with the company. Taking responsibility for the actions done by the Taskers is evidence that the company considers the Taskers as their employees. The Taskers do not choose jobs for themselves, and the company assigns them a task by recommending them to the client. Finally, the clients do not pay the Taskers directly, and in case they fail to pay for a task, the company pays the Tasker. Conclusively, the Rabbits in TaskRabbit company are not entrepreneurs but employees.
Works Cited
“TaskRabbit Connects You to Safe and Reliable Help in Your Neighborhood.” TaskRabbit, Inc, www.taskrabbit.com/terms.
Jost, Micah Prieb Stolzfus. “Independent Contractors, Employees, and Entrepreneaurialism under the National Labor Relations Act: A Worker-by-Worker Approach.” Wash. & Lee L. Rev. 68 (2011): 311.
Leberstein, Sarah. “Independent Contractor Misclassification Imposes Huge Costs on Workers and Federal and State Treasuries.” National Employment Project, http://www. nelp. org (October 2011) (2011).
