By Ellen Huet
The perennial issue in the gig economy is whether workers should be classified as employees. Uber Technologies Inc., Lyft Inc. and other companies that rely on contract work have dealt with this question in a number of ways: staging PR campaigns, hiring lobbyists and arguing in court that they’re software platforms, not employers. At Getaround Inc., which helps people rent out their personal cars online, the startup is employing an uncommon legal tactic in the hope of defeating a class-action lawsuit before it starts.
As lawyers were working on one such case, Getaround preemptively sent dozens of checks to people who have worked with the company, attached to paperwork asking them to sign away their legal rights. According to a provision within the documents, depositing the money, even without signing the contract, would count as an agreement to waive their rights to sue. And almost everyone did.
The technique, which has been used selectively by companies in other industries, may prove to be particularly effective in the gig economy, where workers lack financial…
