In what is believed to be the first time in our nation’s history that a trial court has reached a judicial merits determination in a gig economy misclassification case, a federal judge in California ruled in favor of the company this afternoon and found that a delivery driver was properly classified as an independent contractor. By rejecting the driver’s claim that he was actually an employee deserving of minimum wage, overtime, and other benefits associated with employee status, the court handed gig economy companies everywhere a groundbreaking victory.

What do all gig economy companies (and other businesses using a freelance or independent contractor model) need to know about today’s historic ruling in the Lawson v. Grubhub trial? Here are the three key takeaways from the ruling.

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