Employment Law Alliance Founder and CEO and Hirschfeld Kraemer LLP Co-managing Partner Stephen J. Hirschfeld is quoted in the Los Angeles Times article "Contractors become employees as start-ups solidify a business model."
The article explores the nascent trend of "Sharing Economy" start-up companies shifting from classifying workers as "independent contractors" to "employees." Recent examples include Sprig (on-demand food delivery service), Luxe (valet-parking service) and Instacart (grocery shopping and delivery service).
Reasons for the shifts in classification are explored, with the backdrop of pending litigation against major ride-sharing services mentioned. The piece suggests that for some companies, the employee model is a better fit for their business -- especially as their operations grow and change in complexity.
Hirschfeld weighed in on how companies choose to classify their workforce, "I think you have to look at it on a case-by-case basis."
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