One of the hottest topics in the pre-pandemic world of employment law was whether gig drivers and workers are employees or independent contractors. The term gig worker applies to a variety of work arrangements, but is increasingly used to describe workers who provide services for online ride sharing businesses such as Uber and Lyft and online food delivery services such as Grubhub and Doordash.
For years, workers have been battling with the companies over the legal status of their work relationship. The question is whether gig workers are independent contractors or whether they are employees. Independent contractors are not entitled to workers compensation benefits and unemployment benefits, and the company is not required to comply with minimum wage and overtime laws for independent. So, it’s highly beneficial for the companies to have their workers classified as independent contractors, but highly detrimental to the workers.
Fortunately or unfortunately, depending on the viewpoint, the question of whether a worker is an independent contractor or employee is not left to the company to decide. Rather, the question is a legal issue and resolved by applying legal principles to the business/worker relationship.