Posts tagged "worker classification"

California Assembly Members File Competing Bills Following California Supreme Court Dynamex Decision

January 24, 2019 Update:  On January 17, 2019, Assembly Bill AB 71 (Melendez) (seeking to statutorily supersede the narrow holding in Dynamex, by codifying the widely accepted factors in Borello) was referred to the Assembly Committee on Labor & Employment. Assembly Bill AB 5 (Gonzales) (seeking to codify Dynamex and clarify the decision's application in state law) is an active bill and pending referral to a committee.

IRS SS-8 Program Does Not Sufficiently Address Gig Economy Worker Needs

The Treasury Inspector General for Tax Administration (TIGTA) recently audited the Internal Revenue Service's (IRS's) SS-8 Program, which addresses worker classification issues. The standard options have been either employee or independent contractor. However, in recent years, classification has become more complicated with the emergence of the "gig economy," defined by its reliance on short-term contracts and freelance work.

CA Supreme Court Enhances Independent Contractor Restrictions for Employers

The long-anticipated case Dynamex Operations West, Inc. v. Superior Court of Los Angeles, was issued on April 30, 2018.  The case dealt with whether delivery drivers classified as independent contractors were misclassified as such under California Industrial Wage Commission Wage Order No. 9-2001.

Pilot Program to Fix Wage and Hour Problems

The U.S. Department of Labor (DOL) recently launched the Payroll Audit Independent Determination (PAID) program, which is designed to quickly resolve unintentional minimum wage violations under the Fair Labor Standards Act (FLSA) without penalty to qualified participants. Workers will benefit by swiftly receiving back wages that are owed, and employers can get into compliance without paying penalties. Employers must act quickly, however, since the pilot program is scheduled to end in about six months.

Worker Classification to be Tested in California Supreme Court

In January, 2015, the California Supreme Court granted review of Dynamex Operations West, Inc. v. Superior Court (Lee) (2014) 230 Cal.App.4th 718.

IRS Offers Free Webinar on Worker Classification

On the heels of the most recent development in the Uber worker classification dispute, the Internal Revenue Service has put together a free webinar about the differences between Employee and Independent Contractor worker classifications. Join the agency on May 12, 2016 at 2:00 pm EST (11:00 am PST) to learn about control factors, voluntary compliance, and IRS Form SS-8. Register here: https://www.webcaster4.com/Webcast/Page/925/14635

Uber to Pay Up To $100 Million over Worker Classification Dispute

Employers who wish to utilize independent contractors in their business model may often do so, however, adequate review of the employers' documents and practices is crucial to a successful business plan based on an independent contractor workforce. This week, Uber learned this lesson the hard way.

Dependent Contractors? Third Classification of Workers May Evolve from the Sharing Economy

Entrepreneurs who participate in the "Sharing Economy" may be granted a new worker status as the traditional classifications of employee and independent contractor no longer fit this modern group of workers. Also known as the Gig Economy or the On-Demand Economy, workers in this sector have more independence from the control of their employer than a traditional employee, but they also do not maintain all of the characteristics of independent contractors who do not enjoy the protections of labor laws.

Federal Judge Allows Class Action Status in Uber Worker Classification Suit

On September 1, 2015, U.S. District Judge, Edward Chen, authorized the certification of a class action in a lawsuit against Uber Technologies, Inc. for worker misclassification of Uber drivers. The drivers claimed they were misclassified as "independent contractors," and rather are properly classified as "employees." Thus, if the court eventually sides with Uber, the ride-share company would be subject to penalties, applicable lost wages or overtime wages, California and federal law regarding unfair competition, worker benefits, and employment taxes.

Uber and Lyft in the Crosshairs Regarding Worker Classification

When I left the California EDD's Legal Office over two years ago, I predicted that the "rideshare" software application companies, Uber and Lyft, would soon come under scrutiny for worker classification issues. My prediction was correct. For the past few months, developments have occurred in two federal wage and hour lawsuits involving these two companies, and centering on issues of worker classification.

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