California’s employee classification law did not get changed in the most recent lawsuit brought by drivers against EGL and one of its subsidiaries. The workers alleged that they were EGL employees who had been misclassified as independent contractors and were deprived of benefits conferred upon them by the Labor Code. They sought money damages for: [...]
Many companies classify temporary and contingent workers as Independent Contractors (IC’s) to save money, believing they are safe in doing so. Until reality hits them… In these uncertain economic times the use of contingent workers and independent contractors to get work done is on the increase. This strategy provides flexibility for the company to bring [...]
FedEx will pay Montana a $2.3 million settlement over misclassification of FedEx Ground drivers as independent contractors, Montana Attorney General Steve Bullock recently announced. As it has in other settlements, FedEx did not admit wrongdoing in this settlement. The settlement follows a protracted investigation by Montana state authorities that resulted in a finding that FedEx [...]
Quite often in my client advisory work for Collabrus I present a company with their options if they want to continue down the path of engaging a misclassified, high-end consultant. It usually looks something like this: Hire the consultant as your employee. (This option allows you to safely engage the worker without the risk of misclassification [...]
A franchisee claims unemployment insurance benefits and causes a subsequent audit and federal court case. Guess what? The court says he’s a misclassified employee! UNITED STATES DISTRICT COURT, DISTRICT OF MASSACHUSETTS-A franchise janitorial service worker, who had purchased his franchise from Coverall North America, Inc., was determined to actually be a misclassified employee. If you [...]
According to an article in Telegram.com, based in Worcester, Massachusetts, the state attorney general’s office announced FedEx Ground agreed to pay Massachusetts $3 million to settle claims the company misclassified its drivers as independent contractors. The article reports that, “The attorney general said the company had gained an unfair competitive advantage by classifying the drivers [...]
One more domestic story from my stay-at-home week: the neighbor’s kid takes a freelance job. I was recently home for a week watching television, sleeping and fighting off a bug. I was feeling better later in the week and took a walk around the neighborhood. As I passed my neighbor’s house, their 23 year old [...]
I was recently home with the flu, and couldn’t sleep during the day, so I watched some daytime television. I saw many TV commercials encouraging workers-both IC’s and employees-to sue the companies that feed them. If you spend your daytime hours working, you may not realize there are packs of predators stalking the underemployed, the [...]
Massachusetts-The State Supreme Judicial Court recently issued a ruling that increases the amount of damages a worker can receive if he or she has been misclassified as an independent contractor, even though he was paid at a higher rate than he would have gotten as an employee. (Somers v. Converged Access, No. SJC-10347) The company [...]
In a report issued last year, the U.S. Treasury Department’s Inspector General bureaucratically criticized the IRS, saying that the misclassification of employees as independent contractors is a nationwide issue affecting millions of workers that continues to grow and contribute to the federal tax gap.* The report said, “The IRS…does not have an agency-wide employment [...]
powered by WordPress
