The Biggest Overlooked Risk for Independent Contractor Misclassification Claims Is…

unemployment independent contractor misclassification

Remember the Chicago song called Baby What A Big Surprise? That’s about a good surprise. The girl he longed for was there all along. How sweet.

This post about is about another kind of surprise – one that’s much more bitter.

When trying to avoid independent contractor misclassification claims, we’re often focused on reducing the risks of lawsuits, especially class actions. But there’s another threat that can be much harder to guard against.

So… what is the biggest overlooked risk for independent contractor misclassification claims?

I wrote about it last week, on the BakerHostetler Employment Law Spotlight blog. Still in suspense? You’ll have to click here to find out the answer.

2018_Web100Badge

© 2019 Todd Lebowitz, posted on WhoIsMyEmployee.com, Exploring Issues of Independent Contractor Misclassification and Joint Employment. All rights reserved.

Need training on avoiding independent contractor misclassification claims? Hey, I do that!  

Enter your email address to subscribe to this blog and receive notifications of new posts by email.

 

Announcement: Good Morning to our New Contingent Workforce Practice Team

Baker Hostetler Continent Workforce TeamI recently finished reading Elton John’s autobiography, Me. I’ve always been a big fan, particularly of the early 1970s albums and not the hits. Albums like Tumbleweed Connection, Honky ChateauCaptain Fantastic and the Brown Dirt Cowboy, and Don’t Shoot Me I’m Only the Piano Player have always been among my favorites.

I learned in the book that in 2012, Elton turned over his early 1970s collection to the Australian dance trio Pnau, letting them sample excerpts of these songs in unexpected ways. The result was Good Morning to the Night, a remix album that I had never heard of, but I listened and it blew my mind. Some of the tracks are dance mixes, which are generally not my thing but here it works, in a way I never could have imagined. Another track creates a Pink Floyd feel. Highly imaginative.

I’m excited to announce a new development too, but there is no accompanying dance track or remix.

Last week, BakerHostetler announced the formation of our new Contingent Workforce practice team, which is co-led by me and Mark Zisholtz. We assembled a team that consists of more than 20 Baker lawyers from various practice areas, including tax, employee benefits, government contracts, and corporate transactions. All of these areas of law can come into play when addressing contingent workforce issues .

I invite you to review the Contingent Workforce practice team’s web pages. The web design includes subpages focused on specific services we provide to userssuppliers, and gig economy & technology platforms. On the right side of the web page, you will also find links to two useful tools. The Playbook offers a practical approach for businesses looking for information on how to comply with California’s new independent contractor misclassification law, Assembly Bill 5; and Five Things You Should Know About Joint Employment provides useful tips and facts.

I also recommend Good Morning to the Night. It’s different and unexpected, especially if you know and love the early ‘70s Elton John songs that were not chart-toppers. You can thank me later. And check out the new Contingent Workforce web pages!

2018_Web100Badge

© 2019 Todd Lebowitz, posted on WhoIsMyEmployee.com, Exploring Issues of Independent Contractor Misclassification and Joint Employment. All rights reserved.

Need training on avoiding independent contractor misclassification claims? Hey, I do that!  

Enter your email address to subscribe to this blog and receive notifications of new posts by email.

 

Here’s me in a radio interview, explaining independent contractor misclassification risks in California

Ok, so that’s a pretty boring headline. I will accept responsibility for that.

Let’s try something different this week. Instead of reading, you can listen.

Here is a radio interview on KFROG radio, which aired in Southern California a few weeks ago. In the interview, I discuss California’s Assembly Bill 5, which will convert many independent contractors to employees under California law. I address unanticipated consequences and issues for businesses to consider as they prepare for this law to go into effect.

It’s just under 20 minutes so you can listen on your commute.  Or, if you live in trafficky California, you can listen to it four times on your commute.

You can click here to listen.

2018_Web100Badge

© 2019 Todd Lebowitz, posted on WhoIsMyEmployee.com, Exploring Issues of Independent Contractor Misclassification and Joint Employment. All rights reserved.

Need training on avoiding independent contractor misclassification claims? Hey, I do that!  

Enter your email address to subscribe to this blog and receive notifications of new posts by email.

 

Proposed Law Would Radically Change App Driver Protections and Legal Status; Might Also Stop Zombie Ant Apocalypse (Maybe).

california driver app law ant zombiesYou’re supposed to learn something new every day, right? Here’s something that’s definitely new, unless you are a fungus aficionado — and, lucky reader, because this is a read-only post, you do not have to identify yourself if you are indeed a fungus aficionado, and if you are, TMI, and keep it to yourself.

Anyway, there’s a fungus that attacks certain kinds of ants, takes over their ant-body cells, turns them into zombies, causes them to take a final mad bite into a certain type of leaf, then causes a plant spore to sprout from their heads. Yes, really. It’s right here in this New York Times article, complete with pictures.

The Ophiocordyceps fungus is not a dinosaur, despite its suspiciously dinosaur-sounding name, but it sounds pretty ferocious and looks like it’s threatening to kill off segments of the ant population.

Another thing that is ferocious and threatening to kill something off is California’s recent Assembly Bill 5, which would convert many independent contractors into employees under state labor laws.

The latest attempt to eradicate that ferocious law comes in the form of a ballot initiative being sponsored by some of the large ride hailing and delivery app companies.

The Protect App-Based Drivers and Services Act, if passed, would preserve the independent contractor status of app-based drivers in California if the app companies provide the drivers with a number of financial considerations and benefits, along with allowing the drivers to maintain control over when and where they work. The law imposes substantial driver protections that app companies are currently hesitant to provide, out of fear that providing these benefits and protections might cause the drivers to be deemed employees.

The law would strike a much-need balance that enhances driver rights while creating certainty on drivers’ classification status.

The app companies would have to provide an earnings guarantee of at least 120% of the local minimum wage for time engaged, a 30-cents per mile stipend to cover vehicle expenses, a healthcare subsidy contribution, occupational accident insurance, and liability insurance.

App companies would be prohibited from engaging in discrimination. Companies would also be required to implement a sexual harassment policy, conduct background checks, implement safety training, and implement a zero tolerance policy prohibiting driving while impaired. Rest periods would also be required.

In exchange, the app companies would receive assurance that the drivers are properly classified as independent contractors so long as four conditions are met:

(a) The network company does not unilaterally prescribe specific dates, times of day, or a minimum number of hours during which the app-based driver must be logged into the network company’s online-enabled application or platform.

(b) The network company does not require the app-based driver to accept any specific rideshare service or delivery service request as a condition of maintaining access to the network company’s online-enabled application or platform.

(c) The network company does not restrict the app-based driver from performing rideshare services or delivery services through other network companies except during engaged time.

(d) The network company does not restrict the app-based driver from working in any other lawful occupation or business.

The proposed law is supported by multiple prominent ride share and delivery app companies. Their hope is to gather enough signatures to place the issue on the November 2020 ballot in California.

This is worth watching. You can read more about it here. If passed, this can serve as model legislation to be applied elsewhere around the country.

In the meantime, if you see fungal spores starting to grow out of app drivers’ heads, you’ll know that Assembly Bill 5 got to them first.  We can only hope.

2018_Web100Badge

© 2019 Todd Lebowitz, posted on WhoIsMyEmployee.com, Exploring Issues of Independent Contractor Misclassification and Joint Employment. All rights reserved.

Need training on avoiding independent contractor misclassification claims? Hey, I do that!  

Enter your email address to subscribe to this blog and receive notifications of new posts by email.