$7 Million Judgment Against Firm For Misclassifying Workers as Independent Contractors
/Employers’ misclassification of workers as independent contractors to avoid paying overtime is a rampant problem in the U.S.
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Independent Contractor Rule Change Withdrawn by Department of Labor is a Win for Employees
/Two days before its effective date, the U.S. Department of Labor has withdrawn a rule that was set to implement a so-called "economic reality" test to determine whether a worker is an employee or independent contractor.
Read MorePendulum Swings Back - DOL to Rescind Regulations re Joint Employment and Independent Contractor Status
/The U.S. Department of Labor (“DOL”) plans to rescind a Trump-era regulation on joint employment and stop an impending regulation on independent contractor use.
Read MoreUber Drivers File FLSA Class Action in New York
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FLSA Wage Action Against Uber
On June 2nd, the New York Taxi Workers Alliance filed a class action complaint on behalf roughly 5,000 New York City Uber drivers against Uber Technologies and its related entities. The complaint alleges that Uber’s drivers are misclassified as independent contractors and that Uber’s compensation scheme falls far below statutory minimum wage and overtime requirements.
According to the complaint, Uber exercises sufficient control over their “independent contractors,” to qualify them as employees:
From fares and fees, to what to wear and what route to take, in addition to subjecting its employees to constant monitoring by GPS, Uber directs and sets the terms and conditions of their Drivers’ work. Although Uber’s rules are often described as “suggestions,” Drivers understand clearly that failure to follow these guidelines results in temporary or permanent termination of their employment with Uber. After working for Uber continuously for years, laboring for twelve-hour-plus shifts, for six or seven days a week, these workers simply cannot be considered independent contractors performing a “gig.”
The complaint contains claims for minimum wages and overtime under the FLSA, recovery of equipment costs, unlawful deductions, breach of contract, and promissory estoppel.
