How a worker is classified affects his or her form of compensation, benefits and much more. It is extremely important that employers in West Virginia classify their workers correctly; otherwise, workers can lose out on wages, and employers may face legal recourse. Drivers for Lyft claim that they are suffering financially because of the company's misclassification of its workforce, and some are taking action to change things.
Steak 'n Shake restaurants are located in West Virginia and in other regions in the country and around the world. The fast food chain is known for its burgers, fries and numerous varieties of milkshakes. Many families patronize the locations while traveling or eating out near home. Unfortunately, the chain finds itself in some trouble as it faces a class action lawsuit over the misclassification of certain jobs.
Many so-called "gig economy companies" operate in West Virginia and all across the country. Some businesses, such as Uber or Lyft, offer ride-sharing services to customers. Companies like Grubhub or DoorDash deliver food from various restaurants to people's homes or offices. While most of the gig employees work as independent contractors, there is a growing concern that the companies who hire them are guilty of misclassification.
There are many truck drivers in West Virginia and all across the country who are considered to be independent contractors at their places of employment. Often, companies use contractors as part of their workforces in addition to their full-time employees. While this arrangement can be beneficial to all parties involved, it can also be abused. Managers may begin treating their contractors just as they do their "regular" employees and violate labor laws. Recently, a major transportation company settled a lawsuit that stemmed from misclassification of its truck drivers as independent contractors.
Many companies in West Virginia and across the nation utilize independent contractors in addition to their regular workforce of employees. However, businesses often stumble when employing contractors, since the practice can often result in misclassification of workers. A major manufacturer of baked goods headquartered in another state recently settled a lawsuit that alleged the company had misclassified its distributors as contractors.