An increasing number of tech-based software companies that hire workers in a non-traditional setting are facing down the potential of a wave of employment lawsuits – potentially class action litigation – because of the fact they have long likely been misclassifying workers. Employment attorneys for companies looking to ward off this potential expense are preemptively doling out checks. If cashed, these payments have the effect of a worker signing away any possible right to pursuit of a future claim.
Workers are strongly advised against cashing these checks until reviewing their legal rights with a Los Angeles employee misclassification lawyer – because your claim to damages from an employee lawsuit may far exceed the amount on that check.
That’s because by designating drivers and others as “independent contractors” as opposed to employees, companies like Lyft, Uber and a new startup, Getaround Inc., are able to sidestep any duty to cover major expenses like retirement benefits, overtime, workers’ compensation and various liabilities to third parties for worker negligence. Companies also get away with denying routine rights, such as regular breaks and mealtimes. Collectively, this all adds up to significant coin. Continue reading