Uber is a rideshare service that claims all Uber drivers are independent contractors. Bettina is an Uber driver that is among a growing number of rideshare drivers that claim that they are actually employees, not independent contractors. Bettina complains, “It’s an unethical scam!

They just want to avoid their responsibility to pay payroll taxes and give us workers’ compensation and unemployment insurance.” California recently passed legislation making it more difficult for employers to classify workers as independent contractors. Other states are researching the matter as well as other countries in which Uber operates. Is Bettina correct in believing that her classification as an independent contractor is unethical? What ethical and legal issues are involved?