Year: 2024
Type: article
Abstract: Misclassification of employees as independent contractors is widespread. This article aims to make two contributions. First, to sharpen the explanation of why misclassifications persist: I argue that three well-known problemsthe indeterminacy of employee status tests, the barriers to self-enforcement, and the inequality of bargaining powercombine together to give employers de facto power to set the default legal status. Putting the burden on the worker to initiate legal proceedings and challenge their classification as an independent contractor is the ultimate reason for persistent misclassifications. The second and main contribution is to propose a solution that relies on new AI capabilities. Thanks to technological advancements it is now possible to require employers to seek pre-authorisation before engaging with someone as an independent contractor. The authorisation will be granted (or refused) by a State-run automated system, based on an AI prediction about the law. Both parties will still be able to bring the case before a court of law; but the power to set the default legal status will be taken away from employers. The article considers the difficulties with relying on AI predictions, and argues that those difficulties can be addressed, proposing a model that can be justified.
Source: Modern Law Review
Author: Guy Davidov
Institution: Hebrew University of Jerusalem
Language: English
Topic: Legal and Labor Studies
Subfield: Industrial relations
Domain: Social Sciences
Open Access status: hybrid
Estimated APC paid: $3,240
OpenAlex ID: W4402551140