May 23, 2018

By: Jon Steingart

Gig Companies May Focus on Prong B

“Prong B is the element that companies may find the most likely target for attack, especially those that are tied to smartphone apps, Robert Cooper, a co-chair of the management law firm Buchalter’s labor and employment practice, told Bloomberg Law. Cooper is a shareholder in its Los Angeles office.

“Prong B is going to be tested by the gig economy because that is the test,” he said. “That’s the real linchpin. You have to be in a different business than the business you are working with or for to be considered an independent contractor.”

“As a general rule, most of the entities have a couple of big similarities, which is they consider themselves a software platform,” he said. A company could repel a part B attack by arguing it provides software-based matchmaking services to connect a consumer with a contractor, he said.”

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