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California sues companies over gig workers

Has implications for 10 million workers across the U.S.

“The lawsuit protects the workers as they should be protected and as Americans have expected for 100 years.”


Gig economy companies misclassify workers, refusing to pay taxes, provide benefits like health care and paid sick days, guarantee minimum wage, pay into workers comp, unemployment insurance, and more says John Chuang, CEO of Aquent. “It's horrible for the workers,” he says, “but also an unfair advantage to anyone who competes against these companies.” He estimates traditional companies that follow the law and take care of workers have a 15-20% cost disadvantage.

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