Legal Update: A Victory for Gig Workers in New York

With COVID-19 keeping us indoors most of the time, demand for delivery services such as Instacart, DoorDash and GrubHub is booming—and delivery people are putting themselves and their families at great risk to feed our city.  But many of the Internet-based delivery and “gig” companies cut costs by classifying their employees as independent contractors, which deprives these workers of employment benefits and substantial legal protections enjoyed by employees.  Many of those companies have been accused of violating the law by doing so. 

In a victory for employees in this “gig” economy, New York’s highest court held last week that the couriers working for Postmates were in fact employees, not independent contractors, for purposes of unemployment insurance. 

The Court held that what mattered was “whether the employer exercised control over the results produced by the worker of the means used to achieve the results.” Although the couriers can set their own work schedule, Postmates decides which jobs the couriers will work, tracks their movements while making deliveries, and decides the delivery fees and the couriers’ pay.  The Court held that was enough control to make Postmates liable for unemployment insurance taxes, and their couriers eligible for benefits. 

Whether this signals a willingness of New York courts to consistently hold companies responsible for their employees remains to be seen.  But it is an important step in the right direction for gig workers who have been deprived of certain rights designed to protect the type of work they do.

If you are a gig workers and you think your rights have been violated, contact us.