GrubHub Drivers Are Contractors, Judge Rules in Bellwether Suit

In a significant court decision on the status of so-called gig economy workers, a federal judge ruled drivers for GrubHub Inc. are independent contractors and not employees.

The ruling may have far-reaching implications for other sharing economy companies, including Uber Technologies Inc., whose business models are built on pairing customers with products and services through apps and typically avoid the costs of traditional employment.

U.S. Magistrate Judge Jacqueline Scott Corley in San Francisco concluded Feb. 8 that a gig-economy driver doesn’t qualify for the the protections of employees under California law. Uber is appealing a similar case in the U.K. ...