By now, you’ve probably heard the good news: a federal judge yesterday ruled in favor of Grubhub and pronounced that a delivery driver who was challenging the independent contractor classification model was not, in fact, an employee. This appears to be the first time that a classification case in the gig economy reached a judicial merits determination, so it’s sort of a big deal. And while it only applies specifically in California, the decision rested upon a familiar test (centered around the company’s “right to control” its workers) that is commonly used in other jurisdictions across the country, and could be used by other courts looking to rule on similar cases.
In what is believed to be the first time in our nation’s history that a trial court has reached a judicial merits determination in a gig economy misclassification case, a federal judge in California ruled in favor of the company this afternoon and found that a delivery driver was properly classified as an independent contractor. By rejecting the driver’s claim that he was actually an employee deserving of minimum wage, overtime, and other benefits associated with employee status, the court handed gig economy companies everywhere a groundbreaking victory.