Startups that rely on contract labor will benefit from new NLRB ruling

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Last week, the National Labor Relations Board issued a ruling that could be helpful to several tech companies that rely on contracted labor, like Uber, Lyft, and DoorDash, among others.

On January 25, the NLRB ruled in a 3-1 decision that SuperShuttle operators in the Dallas-Fort Worth area are, in fact, properly classified as independent contractors rather than employees. The case overturns an Obama-era NLRB decision in a case known as FedEx Home Delivery.

The NLRB decision finding that these drivers are actually contractors means they are not bound by the National Labor Relations Act, a landmark law that describes the right to unionize, collectively bargain, and strike. By minimizing their number of employees, Lyft, Uber, and many other similar companies save millions annually in costs they would otherwise have to pay out, including health insurance, retirement, unemployment, and more.

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