Page 24 - BusinessWest November 23, 2020

Law
Is the Gig Up for Some Workers?
How Independent-contractor Law May Be Loosening Up
TBy Amy B. Royal, Esq. Independent-contractor law, especially in Massachu- setts, has been very restrictive when it comes to certain
he number of gig workers has been on the rise over the past few years with the advent of many online-platform companies, such as DoorDash, Instacart, and Uber.
The notion of gig workers and a gig- worker-based economy, however, is not new. Whether
one refers to such workers as gig workers, freelancers, or broadly as independent contractors, this area of employ- ment law has been a thorn in the side of many business- es for several decades. With the significant and robust growth in the online gig-economy world, the restrictive- ness of independent-contractor law on business and business growth, as well as on worker independence, has gotten a new look.
Both a recent victory in the state of California and a new proposed rule from the federal government may be signaling a change in the tide when it comes to the future of independent-contractor law.
business models. Many industries have historically relied on the classification of workers as independent contrac- tors to augment their operations and build capacity as well as to attract workers who want independence when delivering services for them.
For example, traditionally, the real-estate industry has classified real-estate agents as independent contractors. Similarly, tattoo parlors, hair salons, and transportation services have done the same. In these industries, often- times, the expectation of the worker is that he or she will be classified as an independent contractor and, thus, have the freedom and flexibility to maintain indepen- dence over their own schedule and their own craft.
Indeed, the benefit of such gig work is often mutual: the company can reduce its overhead costs in payroll, benefits, and expenses, while the workers can retain free- dom and flexibility over their schedules while garnering higher compensation for the services they deliver.
24 NOVEMBER 23, 2020 LAW BusinessWest