DoorDash Tests Gig-Economy Model With New Hourly Wage Option

A rare move by DoorDash Inc. to offer hourly pay could make its drivers look more like employees under federal labor laws, according to employment attorneys, potentially prompting fresh legal questions about the independent contractor model’s use in the gig-economy.

Tech companies that dominate the app-based industry, including DoorDash, classify the workers that provide their services as independent contractors, who are considered to be in business for themselves, as opposed to employees who receive protections under federal employment laws.

If a court or federal agency was convinced the new pay option demonstrates that DoorDash has a significant amount of control ...