A recent decision from the Department of Labor could change how companies classify certain types of gig employees. Tech companies, such as Uber. Lyft and other similar on-demand businesses that rely on individual gig workers to make up their workforce may find the ruling beneficial. It is important for both Tennessee workers and employers to clearly understand how to properly classify workers in order to avoid wage and hour disputes.
Some people who work for these types of companies claim they are employees, meaning they would be eligible for overtime and the federal minimum wage. However, these companies currently classify these types of employees as independent contractors. The Department of Labor recently released a statement confirming this is correct — these types of workers are not employees. This may benefit companies as they would not have to pay these workers overtime or minimum wage.
Currently, Uber, Lyft and several other types of tech companies are all facing lawsuits over disagreements regarding how they classify workers. The plaintiffs allege they are treated like employees by these companies, and therefore, they should receive the appropriate benefits and protection. Workers who believe they are not properly classified have the right to take legal action to correct this.
If a Tennessee worker is not receiving fair pay or was intentionally misclassified, he or she can fight back. Wage and hour disputes are complex, but it is possible to hold employers accountable for unfair procedures. An employee may find it beneficial to learn more about legal options by first seeking a complete evaluation of his or her claim.