You might have read that in early September a federal court in San Francisco granted class action status in a labor lawsuit involving the question of whether Uber drivers are independent contractors or employees. This legal inquiry may jeopardize the viability of sharing-economy businesses that are built with the purpose of matching individuals who provide services with those who need that service via the Internet.

Those of you who are not involved with businesses in the sharing economy might conclude that the decision from the Uber case will have no impact beyond Uber or the sharing economy. But the line between independent contractors and employees is being re-evaluated and redefined not only by courts, but also by the U.S. Department of Labor. If your business utilizes independent contractors, you must keep an eye on these developments.

Administrator’s Interpretation

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