The Gig economy is revolutionizing the employment arena and, as noted in our recent blog post, it shows no sign of slowing down or waiting for others to catch up. One change that is front and center is the evolution of traditional hiring methods. Many gig employers are transitioning away from the traditional paper applications and short in-person interviews where a candidate is asked standard questions such as “what do you bring to the table;“ or “where do you think you’ll be in five years;” or, my personal favorite, “what’s your biggest flaw?”
A putative class action case, alleging that online food delivery service GrubHub misclassified its drivers, has survived a motion to dismiss and will proceed in California federal court. Noting that GrubHub’s view of the facts may ultimately prevail, U.S. Magistrate Judge Jacqueline Scott Corley said that at this stage, the drivers’ pleadings gave rise to “plausible inference” that they should not have been classified as independent contractors, and thus may have impermissibly been denied minimum wage and overtime pay.
As the gig economy grows, policymakers are asking, “what happens with employee benefits?” Specifically, if gig workers are not classified as employees, what options should they have for retirement savings and health insurance? And what should gig businesses do?
A short time ago, in a location not too far away (Washington, D.C.), the U.S. Department of Labor issued a new interpretation in an effort to further crack down on the perceived problem of employee misclassification.
Here is a link to an awesome infographic that explains how the gig economy works. It comes from a recent Business Insider post entitled, “This awesome infographic explains how the 'gig economy' works.”
Uber and Lyft, perhaps two of the most widely known gig economy employers, have resolved their nearly two-year legal battle which started when Lyft sued Travis VanderZanden, Lyft’s former COO, who left Lyft and became a top executive at Uber.