California Labor Commission Ruling Opens Discussion Over the Differences Between Contract and Full-Time Employees
Commission
rules in favor of contract worker in wage
and benefit dispute
The divide
between contractors and direct employees
grew narrower recently after a ruling by the
California Labor Commission. The ruling
defines Uber as an employer, rather than the
app service they have previously claimed to
be. For those unfamiliar with Uber, the
organization has grown increasingly
prominent in the ride-sharing sector. The
Uber app connects individuals in need of
transportation with Uber drivers in their
area. The passenger is able to select a
driver and pays the driver a fare for the
ride.
To this
point, Uber had classified its drivers as
contractors, rather than full-time employees
of the organization. Uber has also claimed
that it has no control over the hours or
schedules worked by its drivers. Using this
reasoning, Uber has declined overtime pay,
expenses and other benefits it reserves for
full-time employees.
The
California ruling strikes down that
position, albeit in a single instance. The
ruling comes on the heels of a wage
complaint from Uber driver Barbara Berwick,
who claimed that the organization had denied
her compensation for hours worked and
operating expenses she felt entitled to. The
California Commission agreed, ordering Uber
to pay Berwick more than $4,000 in wages and
expenses for her time as a driver.
The slippery
slope of contractor versus employee
Many
employers rely on contract employees to fill
specific roles, manage short-term projects
or provide expertise otherwise unfound in
the organization. The practice of hiring
contractors can be beneficial for both
parties, as the employer is able to save
some costs of benefits and the employee
receives a paycheck for his or her services.
The Uber
ruling signals a shift in thinking when it
comes to the difference between contract and
full-time employee. On the heels of the
ruling, more organizations are sure to
review their policies regarding contract and
full-time employee hiring process, the wages
each is paid and the benefits each group is
offered.
Gone are
the days of employers hiring contractors,
utilizing them as full-time employees and
declining to pay them benefits reserved for
direct hires. As more of these wage and
benefit disputes come to light, the position
of contractors in the workplace is likely to
change.
The
assistance of a New York employment lawyer
may help when the lines between contractor
and employee become blurry
If you
have encountered a complex situation
involving wage or benefit disputes, the
guidance of an experienced
New York employment lawyer may help. At
Hepworth, Gershbaum & Roth, our New York
employment law attorneys leverage more than
70 years of experience to help employees and
employers translate wage and benefits laws
and apply them to each unique situation.
Contact us online or call 212-545-1199
to discuss your case during a free
consultation with one of our New York
employment law attorneys.
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