Another "Sharing Economy" Employment Suit, And Company Shuts Down

A start-up on-demand home cleaning company, called Homejoy, is going to close its doors, following lawsuits challenging its classification of employees as contract workers. Homejoy joins a list of “sharing-economy” companies, which have been targeted in similar lawsuits. This post on the Marketplace Tech site links to a recorded interview with Christopher Koopman, research fellow at the Mercatus Center at George Mason University, about how legal challenges are likely to affect these new companies. The bigger ones – like Uber – are likely to adapt and survive, according to Koopman, but for smaller start-ups it’s going to be difficult to survive.