This past Fall, Flower Foods, a baked goods producer in California, agreed to settle a class action lawsuit alleging that it misclassified approximately 475 drivers as independent contractors. As part of the settlement, Flower Foods agreed to pay $55M in settlement payments and, for another $50M, to repurchase approximately 350 distribution territories in California as it reclassifies workers as employees.
What would a respectful workplace have done?
Classification of workers as employees or independent contractors is a hot topic, and can be confusing with different tests under federal laws as well as individual state laws. Respectful workplaces ensure they classify workers appropriately so that workers who should be employees get all the benefits that come with being an employee. Just because you’ve classified someone as an independent contractor in the past, the worker asks for that classification, or you know other companies that make that classification doesn’t mean your company is safe making that classification. Are you sure your independent contractors are classified appropriately? It can be a pretty expensive gamble.
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Information here is correct at the time it is posted. Case decisions cited here may be reversed. Please do not rely on this information without consulting an attorney first.
