This California ruling could decide future of contracted work This California ruling could decide future of contracted work This month, the California Supreme Court challenged the entire gig economy’s business model, ruling that a contractor must be classified as an employee if they do jobs that are part of the “usual course” of the company’s business.It used the example of hiring a plumber versus a seamstress to illustrate its new test.“When a retail store hires an outside plumber to repair a leak in a bathroom on its premises… the services of the plumber…are not part of the store’s usual course of business,” the ruling stated. “On the other hand, when a clothing manufacturing company hires work-at-home seamstresses to make dresses from cloth and patterns supplied by the company that will thereafter be sold by the company … the workers are part of the hiring entity’s usual business operation.”Plumbers are contractors who are not part of your regular day-to-day operations. Meanwhile, a seamstress, whose work you rely on to make sales, should be an employee.