
GrubHub trial could have major implications for the gig economy - flardinois
https://techcrunch.com/2017/09/02/grubhub-trial-could-have-major-implications-for-the-gig-economy/
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justboxing
> It’s worth noting that companies like Shyp, Luxe and Sprig, which all made a
> big deal about switching its workers from 1099 contractors to W2 employees,
> have all shut down. Ceasing operations is typically a multi-faceted
> decision, but it’s an interesting commonality between those startups.

I have no opinion on whether the contract rates are fair at any of these 'Gig
Economy' startups and apps, but if this trend continues, aren't the workers
essentially 'firing' themselves? Because, when the company loses a class
action lawsuit these workers bring against it, their business model falls
apart (from having to pay benefits etc, esp in states like California), and
they shutdown, and instead of making some money as contractors, they make no
money at all?

Or are they all in it thinking they'll get a HUGE 1-time payout on the
settlement? That also doesn't make sense because in most - if not all class
action lawsuit cases - the actual amount an individual receives is paltry
compared to the total amount (which could go in millions) due to the sheer
number of plaintiffs involved.

~~~
lovich
Is it worth working for a company when you don't get enough to live? I
understand the argument that a small amount of money is better than nothing,
but we are humans, we can extrapolate the future to some extent. If you know
you are fucked when one bad thing happens or that you will drain your savings
in x number of months, why not try to get paid more and see if it works out?

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jbob2000
The outcome of this will be that GrubHub will start limiting the number of
hours their drivers work. There's no way GrubHub will consider them employees,
that would kill the business model.

The banks in Canada already do this. If you are a contractor, you can only
work for 18 months before you are required to take 3 months off. This is to
avoid you being classified as an employee, entitled to benefits and other
employment perks.

