The contractor vs. employee problem continues to hound many on-demand service companies. The ultimate outcome of this debate could go either way, especially as more and more workers find their niche as freelancers, but many on-demand service apps have begun to hire employees rather than contractors.  Many see the added cost as “worth it,” especially in light of recent lawsuits.

Increased vigilance by employers may be necessary, regardless. The Department of Labor recently tightened the definition of contractor vs. employee. Generally, a worker needs to “be in business for himself or herself” to be an independent contractor. Any workers who are economically dependent on the employer should be treated as an employer, according to these guidelines.