Here’s the latest news on employment and payroll law for August 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.
San Francisco Sues Qwick Alleging Independent Contractor Misclassification
Hospitality staffing platform Qwick has been sued by the city of San Francisco, which claims the company misclassifies its workers as independent contractors.
Qwick is “a staffing company with an app that is in flagrant violation of labor and employment laws business model,” City Attorney David Chiu said in a press release. “It uses convenience and flexibility to mask its decision to deny workers their rights.”
Read the full story from SIA here.
Protections for Nonemployee Advocacy Revived by Labor Board
The National Labor Relations Board restored labor law protections for employees who advocate on behalf of independent contractors and other individuals who aren’t covered by those legal safeguards.
According to the NLRB, this ruling reinstates a longstanding framework that was recently struck down in 2019. This ruling also turns on important safeguards focused on employee advocacy across the country.
Read the full story from Bloomberg Law here.
Department of Labor Obtains Judgment in Recovery of $650K for 26 Drivers Misclassified As Independent Contractors by Romero’s Food Products Inc.
The U.S. Department of Labor has obtained a consent judgment as part of its efforts to recover $650,000 in unpaid overtime wages for 26 delivery drivers of a Santa Fe Springs food manufacturer that misclassified them as independent contractors exempt from overtime.
The action by the U.S. District Court for the Central District of California requires Romero’s Food Products Inc. to pay back wages to the affected employees. The court also forbid the company permanently from future Fair Labor Standards Act violations and prohibited Romero from employing any worker for more than 40 hours in a workweek without paying them required overtime pay. The court entered the judgment in April 2023.
Read the full story from the DOL here.