Possibly, the current biggest HR-legal issue faced by on-demand and gig economy companies globally is whether their workers are being misclassified. Several companies in this sector have been engaging a section of their workers as independent contractors and not as employees. As a result, these companies do not comply with the labor and employment laws in relation to such workers.
Various courts have been examining this issue of whether workers have been misclassified as independent contractors and accordingly be entitled to employment-related benefits and protection. On April 30, 2018, the California Supreme Court passed an important decision on this topic. The judgment is likely to have a huge impact on such arrangements and can potentially change the legal landscape for gig economy companies in California, USA, and possibly worldwide!
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This article was originally published in the 11th July 2018 edition of Legal ERA
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