NLRB Revises Independent Contractor Standard

On January 25, 2019, ruling in the case of SuperShuttle DFW, Inc., the National Labor Relations Board (NLRB) clarified the role of “entrepreneurial opportunity” in determining independent contractor status.

As part of its legal test for employment status of the shuttle-van-driver-franchisees, the NLRB considered those factors — including ownership of vans, method of compensation, control over work schedules and working conditions — that contributed to the drivers’ control over how much money they could make each month. The board ruled that the drivers had significant entrepreneurial opportunity for economic gain and as a result were considered independent contractors. This ruling overturns a 2014 case (FedEx Home Delivery) in which entrepreneurial opportunity was severely limited as a deciding factor. For more details, see the NLRB press release.