Postmates Wins New York Ruling Finding Couriers Not Employees

  • Decision fuels debate over status of gig economy workers
  • Company didn’t exert ‘direction and control,’ court rules

Photographer: The Washington Post via Getty Images

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Postmates Inc.’s couriers aren’t employees, a New York state appeals court ruled in a decision that will fuel debate about the status of workers in the gig economy.

The appeals court panel in a 3-2 decision on Thursday said a courier fired by Postmates isn’t entitled to unemployment insurance benefits. The order reverses a state Unemployment Insurance Appeal Board finding that the San Francisco food-delivery startup is an employer liable for unemployment insurance contributions on money paid to its couriers.