Why startups switch from contractors to employees

mac in a coffee shopFrom Business Insider, Biz Carson writes about companies that are switching from using independent contractors to employees because it is a better business decision.  She writes:

“many of the on-demand companies who have recently re-classified their independent contractors as employees — or who began doing business by only hiring so-called W2 employees — say blaming legal reasons is just a sideshow.

The real reason companies are switching is that it just makes a better business. “There’s a lot of noise around legal,” said Joe Du Bey, CEO and co-founder of Eden, an on-demand startup that sends out “wizards” to fix technology.

Eden is the latest startup to make the decision to transition Eden’s workers over from contractors to employees. It’s been a summer of change as Instacart, Shyp and Luxe all flipped their labor force to employees….”

Read the full story at Why startups switch from contractors to employees – Business Insider

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