
"For decades, we've clung to a binary model of employment that assumes all workers fit into one of two rigid categories: either fully employed or truly independent. That framework might have worked in the industrial era, but it's fundamentally misaligned with today's economy, where innovation demands flexibility, and workers increasingly value autonomy. Yet, instead of evolving, we've layered outdated laws onto new realities, leaving businesses caught navigating a patchwork of legal tests with vast differences of case law and interpretation,"
"When gig platforms first emerged-from virtual call centers to rideshare and delivery apps-the reaction from labor advocates was swift. California became the proving ground for this, with landmark court decisions like , quickly followed by sweeping legislation like California's AB5. AB5 codified the decision in Dynamex, which created a new "ABC" test that made it virtually impossible for platform companies to defend independent contractor classification in the state."
Portable benefits momentum and new developments in independent contractor classification are prompting a reassessment of employment structures. The long-standing binary model of fully employed versus independent workers no longer aligns with an economy that demands flexibility and worker autonomy. Outdated laws layered onto new realities have created a patchwork of legal tests and divergent case law, leaving many workers without benefits or protections. Opaque and contradictory classification standards have stalled progress toward modernizing work. California's Dynamex decision and AB5 codified an "ABC" test that made independent contractor classification almost indefensible, spurring extensive litigation and heavy penalties.
Read at Fast Company
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