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Posts tagged Wage & Hour.

It’s impossible to ignore the reverberations that continue to shake the business landscape after the landmark April 30 Dynamex ruling introduced the notorious ABC test to the California gig economy industry. For those living under a rock the past few months, the ABC test adopted by the California Supreme Court now forces businesses to prove that each and every worker satisfies all three elements of the ABC test in order to properly classify them as independent contractors: (A) that the worker is free from the control and direction of the hirer in connection with the performance of the work; (B) that the worker performs work that is outside the usual course of the hiring entity’s business; and (C) that the worker is customarily engaged in an independently established trade, occupation, or business of the same nature as the work performed for the hiring entity. Given the significant difficulty a gig economy business would have in meeting this test for each and every of its workers, it has caused a seismic shift in the way gig companies structure the relationship with their workers.

As the gig economy continues to grow, (https://www.fisherphillips.com/gig-employer/did-gig-economy-growth-contribute-to-strong) some employers may become accustomed to creating external job postings for short-term and freelance projects. However, in doing so employers could be ignoring a more obvious talent pool: their own employees. By creating an internal gig economy platform to notify employees of short-term and freelance projects, employers can create the opportunity for employees to apply for side-projects that they find interesting and that will also allow the employee to enhance the organization. In doing so, businesses can also avoid the unknowns of hiring an unfamiliar freelance worker and can quickly meet the staffing demands for short-term but important projects. Additionally, employees may be able to refer other skilled freelancers to their employer.

In a case previously discussed by my colleague Linda Gulledge, a federal judge in eastern Pennsylvania has rebuffed Uber once again in its attempt to rid itself of potentially expensive wage claims. In December 2016, as Linda described, federal judge Michael Baylson ordered “expedited discovery” on the issue of the compensability of UberBlack drivers’ on-call time. Fast forward about nine months.

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