Gig economy businesses might be unaware of a new requirement in the latest American Rescue Plan stimulus package that is designed to help workers keep track of and correctly pay their taxes each year. The new requirement is the result of an amendment to the United States Tax Code which requires platform companies to inform contract workers of how much money they have made on their platforms. The requirement goes into effect at the beginning…
A unique legislative proposal pending in Connecticut would upend the way that gig economy businesses interact with their workers – and has drawn both strong support and vocal dissent from the very group of individuals it is intended to assist. Senate Bill 1000 would permit rideshare and delivery drivers for gig economy businesses to form a hybrid type of union and engage in bargaining with their hiring entities without being classified as employees. However, this…
We knew it had been coming, but the Biden recently made it official: the Department of Labor announced it wants to rescind the gig economy rule that was originally crafted under President Trump’s tenure and was about to make it far easier for businesses to classify their workers as independent contractors. In its place, the DOL will almost certainly aim to implement a new rule that would more closely align with the Biden administration’s aim…
March is Women’s History month, usually a cause for celebration in the workplace. But this year, unfortunately, most of the news regarding women in the workforce has been COVID-related and negative in nature. Over the last year, positions traditionally held by women, such as those in the service or retail industry, have disappeared, some seemingly overnight. At the same time, women have also been called upon like never before to step in as virtual school…
The new administration’s efforts to reverse course on many of the gains that gig economy businesses achieved under previous White House leadership took another step today as the Department of Labor (DOL) withdrew a guidance letter that indicated typical gig workers are independent contractors. By scrapping the April 29, 2019 letter, the Biden DOL sent yet another signal to businesses that they will have an uphill battle in classifying workers as contractors for at least…
As we predicted, the Biden administration signed an order immediately after taking charge of the White House halting the advancement of the Department of Labor’s new independent contractor rule. Now for the next step: the Assistant to the President and Chief of Staff just published a memorandum titled, “Regulatory Freeze Pending Review,” proposing to postpone the rule by 60 days to allow the new administration to review it. The effective date of the proposed…
The California Supreme Court just declined to take up the petition filed by a group of app-based rideshare and delivery drivers to hold as unconstitutional the voter-approved ballot measure that ensured that app-based rideshare and delivery drivers could be classified as independent contractors rather than employees. On February 3, the California Supreme Court denied the petition filed by the Service Employees International Union (SEIU) and a group of rideshare drivers seeking to strike down Proposition 22.…
A federal appeals court just resurrected a pivotal gig economy battle that at one time seemed to be the center of the legal universe – but for a variety of reasons seems much less important these days. The 9th Circuit Court of Appeals issued a brief administrative order on January 28 that took the landmark Lawson v. Grubhub case out of suspended animation and placed it back on its active docket, ready to be argued…
Joe Biden made no secret about his position on the gig economy when he was in campaign mode. “Employer misclassification of ‘gig economy’ workers as independent contractors deprives these workers of legally mandated benefits and protections,” his campaign website said. “This epidemic of misclassification is made possible by ambiguous legal tests that give too much discretion to employers, too little protection to workers, and too little direction to government agencies and courts.” And the first…
The California Supreme Court held yesterday that the ABC test announced in its landmark Dynamex decision – which makes it infinitely harder for businesses to classify workers as independent contractors – applies on a retroactive basis. This decision ended more than a year-and-a-half of waiting after the 9th Circuit Court of Appeals first held in May 2019 that the Dynamex test applied retroactively and then, a little less than three months later, withdrew its opinion…