Open Access. Powered by Scholars. Published by Universities.®
Articles 1 - 1 of 1
Full-Text Articles in Law
When Tech Startups Outgrow The 1099 Model: Moving Firms Out Of The Kiddie Pool, Chelsea Fitzgerald
When Tech Startups Outgrow The 1099 Model: Moving Firms Out Of The Kiddie Pool, Chelsea Fitzgerald
Vanderbilt Journal of Entertainment & Technology Law
The 1099 independent contractor has become the new norm for Silicon Valley startups. In the wake of the Ninth Circuit Court of Appeals decision in Alexander v. Fed Ex, tech startups have been scrutinized for their financially savvy preference for 1099 contractors through both class action lawsuits and administrative proceedings. As these movers and shakers grow from humble beginnings to companies with multi-billion dollar valuations, the choice between classifying workers as traditional W-2 employees or 1099 contractors will have dramatic effects on the peer economy's labor force and tax status. This Note examines the startup worker classification dilemma, concludes that …