In the Matter of Vega

Luis Vega briefly worked as a courier for Postmates, Inc. (plaintiff), a delivery business that used a website and smartphone application to organize couriers to transport food and goods from restaurants and stores to consumers. When consumers placed a pickup order on the Postmates platform, the job was open to acceptance by couriers who had been background-checked by Postmates and could log in to accept jobs on their own schedule. Once a courier accepted a job, the details of the job became visible, including the delivery address. Postmates paid couriers a fixed percentage of the Postmates delivery fee. Couriers had no control over the delivery fees, and consumers could not request specific couriers for their orders. Vega worked for Postmates for only one week. He received negative reviews from consumers who alleged fraudulent activity, prompting Postmates to block him from the Postmates platform, preventing him from picking up jobs. Vega filed for unemployment benefits. When the commissioner of labor (defendant) informed Postmates that it needed to make unemployment-insurance contributions on Vega’s earnings and the earnings of its other couriers, Postmates contested that decision, claiming that it was not required to make such contributions because its couriers were independent contractors, not employees. The Unemployment Insurance Appeals Board (board) determined that Postmates’ couriers, including Vega, were employees and Postmates was required to make contributions to the unemployment-insurance fund. The Appellate Division reversed, concluding that the couriers were independent contractors. The commissioner appealed to the New York Court of Appeals.