The Perils of the Gig Economy

Many permanent jobs have been replaced by temporary independent contractor positions, called "gigs." The gig economy has been a boon to employers, because unlike employees, independent contractors don’t receive health insurance, vacation pay, overtime pay, or retirement benefits. In addition, many laws that protect employees, such as the wrongful termination and minimum wage laws, do not apply to independent contractors.


However, federal and state authorities are now taking a closer look at whether employers are breaking the law by treating workers as independent contractors instead of employees. Recently, the California Labor Commissioner ruled that Uber should have classified one of its drivers as an employee because Uber controlled every aspect of the driver’s job, including his hours, rates, and the type of vehicle he could drive.


In general, the more control a company has over a worker’s activities, the more likely the worker is an employee rather than an independent contractor. Workers who have been misclassified as independent contractors may be able to recover significant damages and penalties, including minimum wages, overtime pay, vacation pay, health insurance premiums, and retirement contributions.

 

The material and information contained on these pages and on any pages linked from these pages are intended to provide general information only and not legal advice. You should consult with an attorney licensed to practice in your jurisdiction before relying upon any of the information presented here. The acts of sending email to this website or viewing information from this website do not create an attorney-client relationship. The listing of verdicts, settlements, and other case results is not a guarantee or prediction of the outcome of any other claims.  ©2021 Clapp & Lauinger LLP.

701 Palomar Airport Rd., Ste. 300. Carlsbad, CA 92011

Office: (760) 209-6565  |  Fax: (760) 209-6565  |  www.clapplegal.com

Privacy Policy