This month we bring you the latest news on employment and payroll law for April 2023. Get caught up on the most recent changes in legislation, as well as updates on cases and law developments that could impact your business.
Gig Workers in India Strike Over Labor Laws
Gig workers in India went on strike to demand better social security benefits promised to them under the Code on Social Security of 2020, which remains unfulfilled three years later. Blinkit, owned by Zomato Ltd, triggered the strike by imposing a new hybrid payment system that pays drivers only Rs 15 per delivery, instead of a fixed-fee model of Rs 25 per delivery. Zomato responded to the strike with a business-as-usual approach, indicating a lack of urgency in implementing the new labor laws that could protect gig workers. The delay has been attributed to state governments taking time to frame rules under each of the Labor Codes. The strike revealed the vulnerability of gig workers, who function outside the conventional employer-employee relationship, and highlights the need for legislative backing.
Grubhub Misclassification Case Sees Driver Awarded Employee Status
According to a federal judge’s ruling, a Grubhub Inc. delivery driver is considered an employee and not independent contractor when it comes to claims regarding minimum wage and overtime. Grubhub was ordered by a California judge to pay a former driver approximately $65 for wage violations. It’s not so much about the number of dollars in this case as it is about the precedent it sets. Grubhub critics see the ruling as a win for gig workers and believe it will have repercussions beyond this case. “We are very excited about this ruling. I think this is the first court ruling in the country holding a gig worker to be an employee for wage law purposes,” Shannon Liss-Riordan, who represents Lawson, told Bloomberg Law.
Healthcare Companies Entering Gig Economy Must Watch Out for Misclassification
New data tells us that, “the total supply of RNs decreased by more than 100,000 in one year—a far greater drop than ever observed over the past four decades.” This shortage of nurses is pushing many hospitals, including large hospital systems like Providence, into the gig economy. Many of these workers are now classified as independent contractors, but it’s essential to protect nursing professionals and prevent unintended harm while addressing the healthcare workforce crisis. Some states, such as Illinois, Oregon, Louisiana, Pennsylvania, and Connecticut, have already enacted laws requiring healthcare staffing organizations to apply for a license to operate.
Read the full story from The Wall Street Journal.