Dorsey & Whitney - California Changes the Gig Economy Game For Independent Contractor Status

May 1, 2018

The California Supreme Court issued a ruling yesterday that will affect workers and businesses in the Golden State's "Gig Economy." The decision changes the standard to determine whether workers are classified as independent contractors or employees for wage and hour purposes. The same standard may be adopted for other types of employment law claims. Hundreds of thousands of California employers that engage independent contractors must reevaluate those classifications under the new standard embraced by the state's high court yesterday.