The California Supreme Court issued its long-awaited decision in Dynamex Operations West, Inc. v. Superior Court last week. The weight of the court’s decision to apply a three-prong test to determine whether a worker is an employee is heavy, without a doubt. As my colleague Rich Meneghello says, the decision will “appear in the nightmares of gig economy executives.”

Though the Dynamex decision was borne of facts involving delivery drivers for a parcel delivery company, it will have broad application. And it has, indeed, caused much consternation amongst business executives utilizing on-demand workers across all industries, whether app-based or traditional. As with most standards, it remains to be seen how lower courts will interpret the new test.