Large American firms have shed direct employment since about 1980 through outsourcing, subcontracting and franchising while keeping control of their brands. Smartphone platforms pushed that to its end, with workers managed by algorithms yet classified as independent. The classification war from Dynamex to Proposition 22 is a fight over who is the employer.
How much fissuring explains inequality, whether drivers prefer independence, and what Prop 22 work pays per hour are all disputed, with no neutral comprehensive audit. Federal classification status was also unsettled, with the 2026 proposed rule not final.