This month we bring you the latest news on employment and payroll law for September 2022. Get caught up on the most recent changes in legislation, as well as updates on cases & law developments that could impact your business.
Uber Agrees to Pay $100 Million to NJ to Settle Dispute Over Misclassification
Uber and New Jersey have reached an agreement in which Uber will pay $100 million to the state due to a disagreement over whether Uber drivers are considered employees or contractors. New Jersey demanded that the gig economy legend, Uber, pay back taxes, claiming drivers were misclassified as independent contractors. The case is founded on “an audit by the state’s Department of Labor and Workforce Development”.
Read the full story from The New York Times.
New FTC Policy Statement is a Warning to Gig Economy Platforms
The Federal Trade Commission voted to approve a new policy statement that serves as a warning to gig economy platforms. This new policy statement indicates they will “use the full portfolio of laws it enforces to prevent unfair, deceptive, anticompetitive, and otherwise unlawful practices affecting gig workers.” They also created this site where affected gig workers can report fraud.
Read the full story from HR Dive.
Uber Agrees to Pay $8.4 Million to Settle California Driver Misclassification Lawsuit
Uber has also agreed to pay $8.4 million to settle a class-action lawsuit with California drivers (within certain timeframes) who sued for being wrongly classified as independent contractors instead of as employees. “Independent contractor issues have been in the news for several years, but we are seeing more cases being filed…it’s becoming more and more difficult to avoid liability for misclassification claims,” says Jennifer Shaw of Shaw Law Group.
Read the full story from SHRM.