GrubHub Drivers Ruled Contractors in Gig-Economy Milestone
- Ruling may influence Uber litigation over employment status
- Aspiring actor and GrubHub driver claimed he was an employee
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In a significant court decision on the status of so-called gig-economy workers, a federal judge ruled drivers for GrubHub Inc. are independent contractors and not employees.
The ruling may have far-reaching implications for other sharing economy companies, including Uber Technologies Inc., whose business models are built on pairing customers with products and services through apps and typically avoid the costs of traditional employment.