DOL Says Some Gig Economy Workers are Independent Contractors

In an opinion letter dated April 29, 2019, the U.S. Department of Labor (DOL) explained that some service providers working for a virtual marketplace company (VMC) are independent contractors under the Fair Labor Standards Act (FLSA).   This opinion letter identifies the test the DOL is expected to use when considering the classification of workers in this growing gig-economy under federal law. Service provider workers are also referred to as “gig,” “on-demand,” or “sharing-economy” workers.  A gig economy is a marketplace where these workers take temporary positions for short-term engagements.  Often using an App-based platform, the market involves these on-demand workers, the consumers who need a specific good or service, and technology platform companies or VCMs that connect the workers to the consumers.  Examples of some VCMs are Etsy, Airbnb, eBay, and TaskRabbit.…

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