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 […]
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 […]
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.
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.
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…
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 […]
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 […]
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 […]
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 […]
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.
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