Undoubtedly the most meaningful legal development in September 2022 was Uber’s agreement to pay $100 million in settlement to the New Jersey Department of Labor and Workforce Development for back unemployment taxes. As described below, Uber settled for a fraction of the amount it had been assessed, did not admit to liability, and did not agree to reclassify drivers providing services to its customers in New Jersey. Yet the amount of the settlement is so substantial that, as the publisher of this blog was quoted in an article about the settlement, “When a company pays a nine-figure amount dealing with the classification of their workers, other states … take note.” This settlement should prompt other gig economy companies using independent contractors to take action that an increasing number of companies have taken: restructuring, re-documenting, and/or re-implementing their independent contractor relationships, using a process such as IC Diagnostics (TM), to enhance compliance with federal and state independent contractor laws. That process allows companies to minimize misclassification liability in a customized and sustainable manner consistent with the company’s business model, affording it far better defenses not only to class action lawsuits, but also when workforce or tax agencies conduct an audit seeking taxes on the payments to independent contractors.
In the Courts (4 cases)
CONVENIENCE STORE FRANCHISEES IN MASSACHUSETTS WERE PROPERLY CLASSIFIED AS INDEPENDENT...
Unfortunately, Gregg Phillips’ claims that he was twice teleported from one place to another aren’t the biggest problems for this top government official with a long history of shady deals, charit...