California Supreme Court ruling deals blow to “gig economy” companies

Eldonita de Pavel Jacomino
2018-05-07 16:45:45

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California court ruling could spell trouble for Uber. Photo: Google

Sacramento, May 7 (RHC)-- A new ruling by the California Supreme Court will make it significantly more difficult for companies to classify workers as independent contractors -- meaning companies like Uber may have to begin paying overtime, workers’ compensation and unemployment insurance. 

This week’s ruling is being heralded as a victory for workers’ rights, and a blow to the so-called gig economy, in which companies avoid an array of labor laws by classifying their workforce as contractors.

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