This month we bring you the latest news on employment and payroll law for May 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.
Instacart Pays Over $46 Million in Restitution to Misclassified Workers in California
Funds are ready to be distributed, revealed the San Diego City Attorney’s Office, from the $46.5 million in restitution agreed to by Instacart, a grocery tech company. Instacart was sued by the San Diego City Attorney’s Office in 2019. The lawsuit alleged that the company had misclassified its more than 300,000 delivery workers as independent contractors who were deprived of employee rights such as overtime and paid breaks. Marketplaces paying workers as freelancers are constantly being targeted by claims of misclassification. GreenLight.ai helps talent marketplaces navigate this compliance minefield.
Read the full story on Progressive Grocer here.
Nike Could Face Fines of More Than $530 Million for Worker Misclassification
Nike risks being fined more than $530 million and facing class action lawsuits due to their management of independent contractors. The Guardian writes: “A July 2022 review of Nike’s independent contractors in the US, UK, Netherlands and Belgium concluded that the company faces a “misclassification risk” of more than $530m.” That’s what can happen when “there is currently no [fully comprehensive] company-wide process for determining whether an independent [IC] should be engaged as an IC or employee.” If you think your company could be at risk, contact the compliance experts at GreenLight.
Read the full story on The Guardian here.
Therapy Provider Cited Over $9 Million for Misclassifying 1,280 Employees
The California Labor Commissioner’s Office recently cited Feld Care Therapy, Inc. for willfully misclassifying 1,280 speech, physical, and occupational therapists as independent contractors. This resulted in the company being liable for damages amounting to approximately $9 million. The Labor Commissioner’s Bureau of Field Enforcement opened its investigation into Feld Care Therapy, Inc. after receiving a report of labor law violations. Their audit “uncovered the willful misclassification and other violations, including workers not being provided with complete itemized wage statements.”
Read the full story from the California Department of Industrial Relations here.