Employment Categories

New Independent Contractor Law

06 Jan New Independent Contractor Law

California's new independent contractor law went into effect on January 1, 2020. The law, commonly referred to as AB 5, would make it harder for employers to treat workers as independent contractors. It's too early to know exactly what effects the new law will have, but it will likely reshape the gig economy, which relies heavily on independent contractors. Effects of the new independent contractor law The practical effect of the new law is the reclassification of many independent contractors as employees. The new law changes the test used to determine whether someone is an employee or independent contractor. As of January 1, 2020, the law emphasizes the level of control that employers exert over the worker. And it focuses more on whether the worker's job is part of the employer's core business. In theory, this should require companies like Uber and Lyft to treat their drivers as employees. But it's unclear exactly what this will look like in practice. There is already legal controversy about the new law Even prior to it going into effect, Uber said it didn't intend to comply with AB 5. Uber and Postmates have already filed a lawsuit, claiming AB 5 is unconstitutional. More employers will likely file similar lawsuits. Furthermore, misclassified employees will likely start bringing lawsuits of their own. There are advantages to being an employee and misclassified employees can recover penalties from employers. So employers who refuse to comply with the new rules may find themselves defending lawsuits filed by misclassified independent contractors. If you believe your employer has misclassified you, contact the Khadder Law Firm today for a free initial consultation. For updates on this and more, follow us on Twitter and Instagram. And like us on Facebook....

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She could be an employee or independent contractor

19 Nov Employee versus Independent Contractor

Many people are unsure what the different classifications of employee verus independent contractor mean. So what is an employee? What is an independent contractor? What's the difference between the two? And why does it matter? Employee versus independent contractor: what's the difference? People often use worker and employee to mean the same thing. But this isn't actually correct. Some workers are employees, others are independent contractors. So what's the difference? It's actually a fairly complicated legal question. Under both state and federal law, courts look at all kinds of factors to determine whether someone is an employee or an independent contractor. For simplicity's sake, someone is generally an employee when their employer exercises a lot of control over their work. For example, someone that goes to their company's place of business everyday, wears their company provided uniform, uses company equipment, and does what the company tells them to do all day is an employee. Employees work directly for the employer and the employer pays them and provides whatever benefits the employee might get. At least until recently, this has been the dominant working arrangement in developed economies. Conversely, an independent contractor is a worker that is not an employee. This traditionally meant someone who contracted to perform a certain task. For example, the plumber you hire to fix your leaky faucet is an independent contractor. You haven't hired her as employee. You've agreed to pay her to perform a specific task in exchange for a set fee. Once she's finished, you pay her and you both go your separate ways. Why the difference matters Employee versus independent contractor is not simply a legal distinction that exists only on paper. Whether someone is an employee or independent contractor has important real world consequences. First, employees are often entitled to certain benefits, such as health insurance or retirement plans. Independent contractors are not. Second, many labor and employment regulations apply only to employees. Most state and federal wage and hour laws don't apply to independent contractors. For example, you don't need to pay that plumber you hired minimum wage or overtime. Likewise, the state and federal laws prohibiting employment discrimination and workplace harassment generally do not apply to independent contractors. So if you're classified as independent contractor, you may not be to sue if you're discriminated against. Third, and finally, having employees requires employers to provide things like workers' compensation coverage. Conversely, a company does not need to provide workers' compensation coverage for its independent contractors. Likewise, for things like unemployment insurance and social security. The changing landscape Unsurprisingly, the use of independent contractors is on the rise. Companies see it as a way to cut costs without cutting vital labor. But this also leads to abuse. Companies often hire people as independent contractors even when they should technically be employees under the law. Of course, misclassifying employees as independent contractors is unlawful and companies can be subject to penalties for doing so. But, because most people wont sue, companies usually get away with it. Naturally, the increasing use of independent contractors has caused some push back. California recently passed a law cracking down on the use of independent contractors. Other states are also considering similar laws. These laws target workers in the gig economy, such as Uber or Lyft drivers, but will affect other workers as well. If you believe you are misclassified as independent contractor, contact the Khadder Law Firm today for a free consultation. For more follow us on Twitter and Instagram....

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New Uber and Lyft bill

09 Oct New Bills to Make Uber, Lyft Drivers Employees

Following California's lead, other states are considering bills to make Uber and Lyft drivers, as well as other gig economy workers, employees. In September 2019, California's legislature passed Assembly Bill 5, which would change how the state regulates the use of independent contractors. In practice, AB 5 aims to make many workers in the gig economy, such as Uber and Lyft drivers, employees. Currently, such workers are independent contractors. Now, other states are mulling similar bills. Illinois lawmaker preparing bill to make Uber, Lyft drivers, others in gig economy, employees Illinois State Representative Will Guzzardi, will sponsored a bill similar to AB 5. Like AB 5, Guzzardi's bill targets gig economy workers, such as Uber drivers and food delivery app couriers, turning many into employees. Doing so would bring these workers under the protection of more labor regulations, such as the state's minimum wage laws. This effort is in the early stages and it's unclear how much support the bill will have. Either way, experts believe other states will follow California and Illinois in considering bills limiting the use of independent contractors. Lawmakers in other states will certainly be monitoring the reaction to these bills in California and Illinois. New York considering a bill that would extend some protections to non-employees New York State Senator Diane Savino says she'll introduce new legislation that would extend protections to"dependent workers," a new classification the bill would create. Unlike the California or Illinois bills, this bill does not intend to make Uber and Lyft drivers employees. Instead, it will extend certain employee protections to gig economy workers without making them employees. Critics say this is a half measure that will not do enough to combat what they say are Uber and Lyft's predatory employment practices. However, such an approach may prove more politically appetizing for lawmakers weary of radical changes to employment law. The difference between being an employee and an independent contractor is significant There are significant differences between being an employee and an independent contractor. State and federal labor law often does not extend to independent contractors. For example, independent contractors are often exempt from minimum wage laws. Unsurprisingly, employers regularly classify their employees as independent contractors. Unsure if you're properly classified? Read our blog post, for more information. If you believe your employer has missclassified you as an independent contractor, contact the Khadder Law Firm today for a free consultation. For updates on these bills and more, follow us on Twitter and Instagram....

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Working overtime to keep up

05 Apr Working overtime to keep up

What if my employer gives me more work than I can accomplish in 40 hours and I'm working overtime to keep up Sometimes an employee ends up working overtime to keep up with their work. But what if your employer hasn't authorized your overtime? What if they don't know that you're working nights or weekends to keep up? Can you recover pay for that time? In general, an employer can prohibit you from working overtime. But, if you work that time, you should still be entitled to overtime pay, at least as long as the employer hasn't told you not to work any overtime. Especially if your employer gives you more than 40 hours of work. If they tell you, “Don't work more than 40 hours,” but you do so anyway, that’s different. In that case, you may not be able to recover overtime pay. But, if they give you the work, and they don’t tell you not to spend as much time as you need? Then you are entitled to overtime pay. Each case is different. If a court was looking at it, they might adjust how much overtime pay you are entitled to. In doing so, the court will consider the specific circumstances of how you worked those overtime hours. Another factor is whether the employer knew about the overtime. If you believe that your employer has failed to pay you overtime that you have earned, contact the Khadder Law Firm today for a free consultation. For more, follow us on Twitter and Instagram....

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Overtime and record keeping

02 Apr Overtime claims and record-keeping

A common issue arises regarding overtime claims and record-keeping, or the failure to keep records. Both California and federal law require employers to pay overtime to eligible employees. If your employer hasn't paid you overtime to which you're entitled, you can bring a lawsuit against your employer to recover that pay. In most cases, you can prove your claim using your employer's records. But what if your employer hasn't kept records of your overtime? Proving overtime claims and record-keeping It's more difficult to prove your claims if your employer doesn't have adequate records of your hours. Fortunately, California has laws regarding overtime claims and record-keeping. California law requires employers to keep and maintain records on the hours that their non-exempt employees work. If they fail to do so, they can be liable for penalties under the California labor code. Therefore, if your employer is complying with the law, you should be able to prove your claim with their records. But even if they don't, the law still allows you to pursue your claims. Proving claims without your employer's records Ideally, your employer has records that accurately reflect how much overtime you've worked. But this isn't always the case. While this can make things more complicated, it's not fatal. For example, suppose an employee sues her employer for failure to pay overtime and the employer hasn't kept records of that overtime. Typically, the court will allow the employee to estimate the amount of overtime they have worked. The court will take that into consideration in determining how much the employee can recover. The more precisely you can estimate the overtime, the better. If you believe that your employer has failed to pay you overtime that you have earned, contact the Khadder Law Firm today for a free consultation. For more, follow us on Twitter....

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