12/23/2024

Don’t Kill the Growing Gig Economy

What was the biggest local business story of the year?

With a sigh, I vote for the state Supreme Court’s decision in April that basically outlawed the gig economy in California. I sigh because the ruling truly may disrupt the way business increasingly is being done today, especially here in the San Fernando Valley area.

In its decision in a case titled Dynamex Operations West v. Superior Court, the court essentially said you should not hire an independent contractor to do work that is a core part of your business. Instead, you need to hire that person as an employee. If you are a baker and you have a contractor on call who comes in as needed to make specially decorated cakes, you may need to hire that person, if only part time.

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