Potential (ap-based) Gig Work Rule Changes

We’re watching the Labor Department’s new rule stipulating additional tests to determine if workers may be counted as contractors. The new rule identifies such factors as whether a job is permanent or temporary and how much control the company has over work performance. This move represents a new chapter in the conflict that precipitated an expensive 2020 battle in California over similar rule changes. Led by Uber and others, that faceoff was ultimately won by industry through a ballot initiative.

The courts will have their say on these new rules, but already a similar fight is being readied for Massachusetts this year.

The consideration is, just how much such rule changes may impact the business and prospects of current and future app-based companies that leverage gig workers.

Bill Haines, Partner