We’re watching the Labor Department’s new rule stipulating additional tests to determine if workers may be counted as contractors. The new rule identifies such factors as whether a job is permanent or temporary and how much control the company has over work performance. This move represents a new chapter in the conflict that precipitated an expensive 2020 battle in California over similar rule changes. Led by Uber and others, that faceoff was ultimately won by industry through a ballot initiative.
The courts will have their say on these new rules, but already a similar fight is being readied for Massachusetts this year.
The consideration is, just how much such rule changes may impact the business and prospects of current and future app-based companies that leverage gig workers.
Bill Haines, Partner