As the Associate Administrator of the federal Small Business Administration, I learned about the challenges facing entrepreneurs. Among the most pressing concerns were liability and lawsuits. The emergence of the health care apps and the resulting issue of worker misclassification will make those problems worse for many small businesses.
Small businesses are the backbone of the United States economy but their limited resources makes them more vulnerable to legal entanglements. The costs associated with legal battles can be overwhelming, potentially closing the business altogether.
Health care apps revolutionized how individuals manage their medical needs. Venture capitalists poured hundreds of millions of dollars into a new health care gig economy — health care staffing apps.
Health care staffing apps match workers to opportunities. Health care workers upload their certifications, educational information, and areas of expertise, while health care facilities post staffing needs. Workers then browse through the available shifts and swipe to find the perfect match.
These health care staffing apps introduce many legal concerns for facilities operating in this space. Not all health care staffing apps are created equal. Some staffing apps classify their workers as 1099 independent contractors and others as W-2 employees. This blurred line between employee and self-employed worker has led to severe consequences, including lawsuits, back taxes, and penalties.
Illinois, Oregon,...
stage at the Ninth Circuit, where pharmaceutical companies say a momentous new ruling "illustrates perfectly" the constitutional concerns of U. S. Supreme Court justices regarding FCA enforcement. ...