For the second time in a matter of months, a state attorney general’s office has recovered millions in a case involving alleged worker misclassification by employers.

As you may recall, in mid-September, the New Jersey Office of Attorney General and the state department of labor announced that the ridesharing service Lyft agreed to pay more than $19 million to settle charges that it had improperly classified more than 100,000 of its drivers as independent contractors rather than employees. That payment included $8.5 million in penalties and interest.

California Issues $10M Worker Misclassification Judgment

Just two weeks later – in early October – California’s attorney general announced a $10 million judgment against a provider of in-home caregiving services that it accused of violating California law by misclassifying in-home care workers as independent contractors rather than employees.

Recent economic shifts, the emergence of AI, and large-scale changes in both consumer habits and labour dynamics are driving CX leaders, brands, and their customers into unchartered territory while forcing...

In the lawsuit, filed in June 2023, the California attorney general targeted business partners Benjamin Cabrera and Geoffrey Jimenez, who started a caregiving service business called TLC Home Care Services in 2016. The name was later changed to Care Specialist HCS Inc., which was also named as a defendant in the suit.

The suit said that since the beginning, the business wrongly...

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