Advocates for “gig economy” work (think Uber and other forms
of work arranged on a one-off basis) point to the flexibility and control
people have when they work in this new kind of relationship. If an Uber driver
gets into an accident, does Uber pay? The company offers $1 million in
insurance while a passenger is in the car—but during the time a car is
dispatched but empty, the driver’s personal insurance is all that applies (to confirm,click here). [Notice that the policy does not provide coverage for catastrophic accidents that cause more than $1 million in losses.]
This changes an employer’s liability for damages
caused by his employee. These case are from English courts in 1691:
“The owners are liable in respect of the freight and as
employing the master; for whoever employs another is answerable for him, and
undertakes for his care to all that make use of him.” Boston v. Sandford, 2
Salk. 440; 3 Mod. 321 (1691).
“So, in this case, if the defendant's servant kindled the fire in the way of husbandry, and proper for his employment, though he had no express command of his master, yet the master shall be liable ...; for it shall be intended that the servant had authority from his master, it being for his master's benefit.” 1 Ld. Raym. 264 (1691).
Bottom line: The emerging work model sets us on a course
where people who benefit by employing others do not take reciprocal
responsibility for damages caused by their employees. It looks like a major step
back in regulating how our society allocates risk and responsibility.
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