Driven by a scarcity of qualified talent and the need for their companies to be increasingly agile and cost-effective, human resources (HR) leaders are increasing their focus on and preparing to embrace the mounting gig economy. According to software company Oracle, almost 40% of companies surveyed are currently hiring on a temporary or project basis, but that may be just the veritable tip of the iceberg. Half of HR decision makers say they will be hiring more workers on a project basis by 2020.
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.