Why One Sharing Economy Company Decided to Convert Its 1099 Workers to W2 Employees

Why One Sharing Economy Company Decided to Convert Its 1099 Workers to W2 Employees
July 30th, 2015

We reported several weeks ago that an increasing number of 1099 economy companies are beginning to re-evaluate their workforce models – with some electing to shift workers from independent contractor to part-time or full-time employee status. While most likely driven by fear of litigation from misclassified workers and regulatory scrutiny, some company leaders are also […]

more

NC State Seal
North Carolina Legislators Pushing to Curtail Independent Contractor Misclassification
July 28th, 2015

States continue to push forward with legislation designed to eliminate independent contractor misclassification. The latest example is North Carolina, where there are two proposed bills, SB 694 and HB 482, which are currently working their way through the legislative process. The fundamental issue they are trying to eliminate is companies who classify workers as independent […]

more

Kentucky state seal
Kentucky Becomes 23rd State to Join DOL’s Employee Misclassification Initiative
July 23rd, 2015

Last week Kentucky signed a three-year memorandum of understanding with the US Department of Labor to crack down on misclassification of employees as independent contractors.

more

Hillary Clinton
Hillary Clinton Comes Out Swinging Against the 1099 Economy
July 21st, 2015

Now it seems like almost every business day we’re hearing about the issues surrounding independent contractor misclassification, and the business risks of engaging flexible workers. Thanks to Hillary Clinton it has now also entered the conversation for the 2016 Presidential election.

more

Is Homejoy the Canary in the 1099 Economy Coal Mine, or Just a Bad Business Model?
July 20th, 2015

Home cleaning startup, Homejoy, announced last week that it is ceasing operations at the end of July. While the official reason for their decision to shut down was an inability to raise additional venture funding, the “reason-behind-the-reason” was that four pending worker misclassification lawsuits…

more

US Department of Labor
DOL Issues Updated Guidance on Worker Classification
July 15th, 2015

Today (July 15, 2015) the US Department of Labor (DOL) published updated guidance on worker classification, in the form of Administrator’s Interpretation No. 2015-1 (PDF download) from David Weil, the Wage and Hour Division Administrator. The document is descriptively titled as: SUBJECT: The Application of the Fair Labor Standards Act’s “Suffer or Permit” Standard in […]

more

Some 1099 Economy Companies Are Hiring Workers as Employees
July 14th, 2015

Over the last few months a number of 1099 economy (or so-called “sharing economy”) companies have come under intense legal and political scrutiny for their common employment practice of classifying workers as independent contractors instead of employees. As we’ve reported in recent blog articles, due to its size, scale, and pugnacious style, Uber has found […]

more

The Temperature is Rising in the 1099 Pool
July 9th, 2015

Things continue to heat up for on-demand app companies that choose to classify many of their workers as independent contractors. Last week, complaints were filed against Shyp, Washio, and Postmates seeking to force them to reclassify drivers as full-time employees. These lawsuits were filed by Boston-based Shannon Liss-Riordan, who is also the lead attorney in […]

more

27982j01
Why the Obamacare Decision Is Potentially Good News for the 1099 Economy
July 7th, 2015

A few weeks ago the US Supreme Court issued its momentous decision that preserved the federal tax credits for the Affordable Care Act (a.k.a. “Obamacare”). One aspect of this decision that didn’t get much media coverage is that it is potentially good news for the 1099 economy. The ACA has been touted as an essential […]

more

US Department of Labor
The New Overtime Proposal: What Does It Mean?
July 1st, 2015

On Tuesday, June 30th, the US Department of Labor (DOL) finally published their proposed Overtime Exemption changes for public comment. According to the DOL, this proposal, if approved as is, would result in approximately 5 million workers becoming eligible for overtime pay who were considered exempt from overtime before.

more

There's Much More

Understanding and navigating the complexities of our industry is what we do best and we'd enjoy the opportunity to talk with you about yours. Please fill out the fields below and we'll contact you within 24 hours. Thank you.