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Key ruling for gig economy companies: US court provides roadmap for misclassification success


A federal appeals court in New York has handed a massive victory to a car service enterprise, ruling that a group of workers seeking to collect overtime payments were not actually employees and were properly characterised as independent contractors.

In issuing its ruling in Saleem v Corporate Transportation Group, the 2nd Circuit Court of Appeals provided what may superficially appear to provide a roadmap for technology businesses that digitally connect workers with consumers to understand, and avoid, misclassification risk. Upon a closer inspection, however, that roadmap may not always help such businesses arrive safely at their destinations.

This is a rapidly evolving area of the law, and courts across the US continue to grapple with complex issues. This briefing looks at the ruling in more detail and assesses what the case means for businesses.

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