State regulators in California have imposed a substantial misclassification penalty on a global employer. It’s yet another reminder for HR pros: Treating workers as independent contractors when they should be classified as employees can be a very expensive mistake.
In recent weeks, state regulators have sharpened their scrutiny of worker classification, making it clear that mislabeling workers carries a higher risk. First among recent notable examples is the New Jersey case involving Lyft — the ridesharing service agreed to pay more than $19 million for misclassifying more than 100,000 of its drivers as independent contractors rather than employees.
On the heels of that case came an announcement from California’s attorney general of a $10 million judgment against a provider of in-home caregiving services that was similarly accused of misclassifying workers as independent contractors instead of employees.
Employers need every competitive edge they can get to stand out. At the same time, employees’ expectations have grown since the pandemic. And traditional benefits — like health insurance and...
Now comes yet another substantial penalty in a misclassification case, again involving California and a big-name employer. This time, it’s membership warehouse club Costco that is facing payment of a heavy misclassification penalty.
Near the end of October, the state’s Department of Industrial Relations announced that the state’s...
[WASHINGTON] California-based TP-Link Systems says it may take a sales hit of more than US$1 billion because of erroneous reports that the networking company’s technology has been used to launch C...