According to Ed Kilgore, California, has by virtue of a decision by its Supreme Court adopted perhaps the toughest standard in the country for employer treatment of its basic human capital as contractors. In particular, it affects the “gig economy” model, notably California-based enterprises like Uber and Lyft, which treat their drivers as independent contractors.
1. According to the article, who bears the burden of proof as to the classification of contractors?
2. What can companies objecting to the law do as recourse?
3. How will this shift costs for some companies?
Kilgore, E. (2018) California Court Ruling Could Be Major Blow to ‘Gig Economy’ Firms. New York Magazine, May 1 (Retrievable online at http://nymag.com/daily/intelligencer/2018/05/ca-court-ruling-could-be-major-blow-to-gig-economy.html