A delivery courier fired by app-based Postmates is an independent contractor, not an employee entitled to unemployment insurance benefits, the Third Judicial Department of the New York Supreme Court has ruled. Matter of the Claim of Luis A. Vega, No. 525233 (June 21, 2018). The case is one of many disputes across the country over the status of workers in the gig economy.

Postmates Inc. is an app-based food delivery service known for its ability to deliver from hard-to-reach restaurants around Manhattan, Brooklyn, and Queens.

Luis Vega was a delivery courier for Postmates. Vega applied for unemployment insurance benefits after Postmates terminated its relationship with him based upon alleged negative consumer feedback or fraudulent activity. The Unemployment Appeal Board, reversing a decision by an Administrative Law Judge (ALJ), found that an employer-employee relationship existed between Postmates and Vega. Contesting the Board’s decision, Vega filed suit on behalf of himself and others similarly situated.

The court, by a 3-2 vote, reversed the Board. The case turned on how much control the company had over the delivery couriers. The court found the company did not exert enough control over Vega or those similarly situated to be held liable for unemployment insurance contributions.

The majority found significant that, in order to work as a courier for Postmates, claimant and others similarly situated “need only download Postmates’ application software platform and provide his or her name, telephone number, Social Security number and driver’s license number; there is no application and no interview.” Further, they “were not required to report to any supervisor,” “they unilaterally retain[ed] the unfettered discretion as to whether to ever log on to Postmates’ platform and actually work,” and were “free to work as much or little as he or she want[ed] — there is no set work schedule.”

The panel concluded, “[W]hile proof was submitted with respect to Postmates’ incidental control over the couriers, the fact that Postmates determines the fee to be charged, determines the rate to be paid, tracks the subject deliveries in real time and handles customer complaints … does not constitute substantial evidence of an employer-employee relationship.”

Jackson Lewis attorneys are available to answer inquiries regarding this case and other developments.

Print:
Email this postTweet this postLike this postShare this post on LinkedIn
Photo of Stephanie L. Adler-Paindiris Stephanie L. Adler-Paindiris

Stephanie L. Adler-Paindiris is a Principal and the Co-Leader of the firm’s Class Actions and Complex Litigation practice group. Her practice focuses exclusively on the representation of employers at the trial and appellate level in state and federal courts facing class and collective…

Stephanie L. Adler-Paindiris is a Principal and the Co-Leader of the firm’s Class Actions and Complex Litigation practice group. Her practice focuses exclusively on the representation of employers at the trial and appellate level in state and federal courts facing class and collective actions as well as claims of discrimination, retaliation or whistleblowing activity on an individual basis.  She also appears regularly before administrative judges and agencies.

Ms. Adler-Paindiris has conducted over a dozen trials before juries and judges in state and federal courts. In addition, Ms. Adler has participated in arbitrations and administrative hearings before the Florida Division of Administrative Hearings as well as AAA and FINRA. Ms. Adler-Paindiris has successfully defended appeals before four Courts of Appeals and has been admitted to the U.S. Supreme Court.

Ms. Adler-Paindiris also provides on-going legal support and counsel on a daily basis for many of her clients. She routinely provides training to managers and supervisors in all areas of employment law, including but not limited to, supervisory training, sexual and racial harassment prevention, disciplinary practice, documentation policies, safety and disability management.

Ms. Adler-Paindiris is also the Co-Leader of Jackson Lewis’ Women’s Interest Network or “WIN” working with the firm’s women attorneys and clients to increase diversity and inclusion efforts both internally and with our clients.

Ms. Adler-Paindiris is active in her community supporting a number of organizations related to her five children. She is also passionate about volunteering her time and services to the Wounded Warrior Project and other organizations.