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Trouble for Startups Reliant on Independent Contracts?

Published Thursday May 3, 2018

Trouble for Startups Reliant on Independent Contracts?

The California Supreme Court issued a ruling on Monday that makes it more difficult for companies to label workers as independent contractors rather than employees, a decision that could dramatically increase the costs for startups reliant on the gig economy.

According to story by Emily Canal, staff writer at Inc.com, the court abandoned the existing test for deciding a worker's employee status, which included factors like whether a person could be fired without cause and amount of supervision. Now, workers are considered employees if their job is considered to be the "usual course" of the business operations. Read the full story at Inc.com

 

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