At the end of April, California’s Supreme Court ruled in longstanding case surrounding delivery company Dynamex when it came down in favor of independent contractors who were seeking employee status. Furthermore the court set out a streamlined set of criteria in order for companies to distinguish if workers are independent contractors or salaried employees. The California court’s criteria are in line with regulations that are currently in force within other North American States and this move could deliver a serious blow to the burgeoning gig economy, especially as regards digital platforms such as Uber, which is headquartered in California.
Back in 2004 Dynamex decided to change its delivery drivers’ status from employee to a more cost efficient independent contractor status. As independent contractors the former employees no longer enjoyed minimum pay, minimum working hours, sick leave, or health insurance. The 300 Dynamex drivers filed a complaint in an attempt to retain their former employee status and they invoked a ‘worker status classification error’. Years of courtroom time later and Chief Justice Tani, Cantil Sakauye...
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