Fed Ex just settled a claim making their freelance independent contractor employees! What does that do to the rest of the companies using the on-demand workforce? We are seeing many companies, created and instead of hiring employees, they utilize the freelance worker. Genius, they eliminate the cost of employees, or the expenses of their business and gives them a cost advantage over the traditional business model. This business model is under attack! Based on employment laws in California, these employers are going to be writing a very big check to get into compliance with employment law. They are employees! They control the work and the rate of pay!
California becomes the latest state to challenge Uber’s business model by declaring drivers are employees rather than contract laborers. In May, the Florida Department of Economic Opportunity ruled that a former Uber driver who was fired was an employee and had the right to collect unemployment benefits. Uber is contesting that decision. At least five other states have also issued rulings that classify Uber drivers as employees, according to the company, but reversed them after Uber appealed.