Employee or independent contractor – what are you?
Manufacturer of mayo, Hampton Creek, has become one in the line of the companies who were sued based on misclassification of workers.
Company that is based in San Francisco has been accused of violating the FLSA or Fair Labor Standards Act and NYLL or New York Labor Law because it classified its workers as independent contractors, people who were in charged for in store activities.
To understand better this mater: if you are hired as an employee you have a right for all hours to be paid, additional hours too, such as over time, employer has to provide you food and rest breaks. But, if you are hired as an independent contractor, you will have fewer rights.
This is not a new issue regarding employer – worker litigation. The public has become aware of this issue when high profile cases such as Uber and FedEx came into the public.
Regarding a case of Hampton Creek, workers were denied minimum wages.
This lawsuit will seek to recover unpaid overtime, liquidated damages, fees for the attorneys, interest and all cost that plaintiffs had. click on this states that these cases are often common practice among employers. They classify workers as independent contractors so they wouldn’t have to five them full time employment. They why these employers are under constant surveillance of court and government agencies.
In workers are classified as independent contractors they cannot achieve the right provided by the FLSA.
Companies can avoid litigation in cases where they can hire independent contractors, but workers need to be properly classified. Companies need to work with law in order to avoid legal lawsuits.
In the case of Hampton Creek, the assessment of how workers choose to manage their time and what is their degree of independence, also contract terms, will have effect on their classification.