Here’s the latest news on employment and payroll law for July 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.
DoorDash Tests Gig-Economy Model With New Hourly Wage Option
A rare move by DoorDash Inc. to offer hourly pay could make its drivers look more like employees under federal labor laws, according to employment attorneys, potentially prompting fresh legal questions about the independent contractor model’s use in the gig-economy.
It’s likely no surprise that this could significantly push DoorDash contractors to employee status and fundamentally shift how the model works.
Read the full article from Bloomberg Law here.
Driving the Narrative: California Supreme Court’s Adolph v. Uber Technologies Decision Shifts Gears
With its decision in Adolph v. Uber Technologies, Inc. (“Adolph”) the California Supreme Court has reignited the debate surrounding arbitration agreements containing waivers of an employee’s right to bring a representative action under California’s Private Attorneys General Act (“PAGA”).
This furthers California’s employee-friendly attitude in similar cases and is extremely important for employees because it is different from historic employer-friendly precedent (Viking River Cruises) AND increases the potential positive outcomes for aggrieved employees due to the fact that their waiver of representation isn’t necessarily valid.
Read the full story and history from JD Supra here.
Department Of Labor Recovers $119k In Back Wages For 72 Workers After North Carolina Home Care Employer Misclassifies Them As Contractors
Investigators with the U.S. Department of Labor’s Wage and Hour Division found the provider of day and overnight home healthcare to the sick and elderly in the Wilson area misclassified employees as independent contractors and paid them straight-time rates for all hours worked. By doing so, the employer did not pay the affected workers their additional half-time premium rate for overtime for hours over 40 in a workweek, a Fair Labor Standards Act violation. In addition, the employer failed to keep accurate pay records as required.
See the full outcome of the investigation from the DOL here.
