Payroll
Gig economy companies classifying their workers as independent contractors continue to face lawsuits, state action, and federal agency enforcement
For much of the last decade, a legal and regulatory storm at the state and federal level has surrounded classification of workers as “independent contractors” or “employees.” The dramatic growth of the gig economy, especially app-based service such as Uber, Lyft, Door Dash, Instacart, etc. has contributed to the upheaval. Uber and Lyft have faced lawsuits across the country contending they misclassified their drivers as independent contractors rather than employees in violation of the Fair Labor Standards Act (FLSA) and similar, state wage and hour laws.
One lawsuit involving almost 400,000 Uber drivers in California and Massachusetts was settled for approximately $100 million prior to trial. The court rejected that proposed settlement, however, as insufficient to adequately compensate the affected drivers. The state of New York has determined Uber drivers to be employees for purposes of its unemployment benefits law, and the Massachusetts attorney general filed suit against Uber and Lyft in July 2021 for classifying their drivers as independent contractors instead of employees. The presiding court rejected the companies’ efforts to have the lawsuit dismissed.
Courts have not served as the only avenue to address worker classification issues. In 2019 the California legislature enacted a law defining many gig economy...
Katy Perry is under investigation by Australian police following Ruby Rose’s explosive sexual assault claims against the singer. “Melbourne Sexual Offences and Child Abuse Investigation Team (SOCI...