Richard Reibstein, co-head of Locke Lord’s Independent Contractor Misclassification and Compliance Practice, was quoted by Law360 on a California settlement by gig company Handy in a lawsuit by district attorneys claiming independent contractor misclassification. Reibstein noted letting workers set their own rates is a compelling data point in the constellation of factors that go into demonstrating independent contractor status.
“Allowing contractors to set their own price is a compliance method that we use often because it is clearly a factor that favors independent contractor status,” he said. “Price is one of the most important elements of a transaction and it helps demonstrate a lack of direction and control when contractors have authority to determine it themselves.”
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