The Affordable Care Act (ACA) has brought increased health care costs to many employers, but the majority of organizations believe the largest cost increases are yet to come, shows a new survey by the International Foundation of Employee Benefit Plans.

The survey report, 2015 Employer-Sponsored Health Care: ACA’s Impact, notes:

• One-third of employers (33 percent) expect the greatest cost increase from ACA implementation to take place in 2016, as new reporting, disclosure and notification requirements take effect.
• Over one-quarter (27 percent) expect the largest cost increase in 2018, when the impending excise tax on high-value plans(the “Cadillac tax”) kicks in. The nondeductible 40 percent excise tax will be levied on plans that cost in excess of statutory thresholds (in 2018, $10,200 for self-only and $27,500 for family coverage), regardless of whether premiums are paid by employers or employees.

The survey also asked employers what they think will be the top compliance-related cost-drivers going forward. They responded:

• The excise tax on high-value plans (20 percent of employers).
• General administrative costs (19 percent).
• Costs associated with reporting, disclosure and notification requirements (13 percent).

“Employers need to devote significant time and energy to maintain compliance with the law,” explained Julie Stich, CEBS, director of research at the foundation, in a news release. “The extensive amounts of data that employers are required to collect can take hours [of labor] and even require complex IT infrastructures. The process has meant a cost increase for many, especially smaller organizations.”

Most employers (71 percent) think the costliest years are yet to come, but that doesn’t mean they aren’t already feeling a financial impact. Eighty-two percent say the law is increasing their organization’s costs this year, with most projecting a 1 percent to 6 percent increase in compliance expenses.

Options for Controlling Costs

Employers are taking a number of steps to help control costs related to the Affordable Care Act. *HDHPs. A significant number report that, due to the law, they have increased their emphasis on, have added or are considering adding a high-deductible health plan (HDHP). HDHPs have lower premiums than other health plans, which can help employers avoid triggering the excise tax.

• HSAs and HRAs. Forty-two percent of employers have or are considering an HDHP with a health savings account (HSA), 13 percent an HDHP with a health reimbursement arrangement (HRA), and 11 percent an HDHP with no account. HRAs are employer-funded, while HSAs can be funded by employers and employees. Both vehicles can help employees handle the financial burden posed by high deductibles (see the SHRM Onlinearticle Health Care Consumerism: HSAs and HRAs)
• Full-replacement approach. Nearly one in 10 organizations said they had adopted a “full-replacement” HDHP strategy, where HDHPs are the only plan options provided, to avoid the excise tax. An additional 19 percent are considering doing so.

“High-deductible health plans are proving a popular option among employers that are looking for a way to hold both current and future health care costs in line,” said Stich. “As employers face the upcoming ‘Cadillac tax,’ it’s likely that HDHPs will continue to gain popularity.”

The survey found that just over half of the employers taking part in the survey are on pace to trigger the excise tax in 2018, but only 3 percent actually plan to pay the tax. Of those looking to avoid the tax, 53 percent have added or plan to add a high-deductible health plan.

In addition, 13 percent report they will not incur the excise tax because they have already taken action to avoid it.

No Plans to Drop Health Care

Despite the three in five respondents who feel the law has had a negative impact on their organization, nearly all employers (96 percent) anticipate they will be continuing to offer health care coverage five years from now.

“Health care benefits are seen as essential for attracting future talent and retaining current high-quality employees,” said Stich. “Employers may change the structure of their health care plans or shift some of the cost burden to their employees, but it doesn’t appear they will stop offering health care benefits anytime soon.”

The survey was conducted in March 2015 among HR and benefits professionals in the databases of the International Foundation of Employee Benefit Plans and the International Society of Certified Employee Benefit Specialists. The organizations represent a wide base of employers from nearly 20 industries.

By: Stephen Miller @ SHRM

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The truth is, your employees are your human capital and they are your greatest asset. Your competitors can open up shop and begin operating their business right next door to yours. They may even start offering similar products and services to yours, and they may even begin matching or beating your pricing but there is one distinct advantage your business will have over theirs – your people.

Your company’s success hinges on maximizing your most valuable asset. But without adequate time, resources and technology, it’s very difficult to find the right people, develop and manage your people, manage the paperwork and protect your business.

PEOs Provide Human Capital Management Expertise

By tapping the expertise of a Professional Employer Organization (PEO) for human capital management you receive an array of solutions your company can use to maximize its most valuable asset whether you have 5 employees or 500. With a Professional Employer Organization (PEO), you’ll have more to focus on running your business, boost your bottom line and put your people first.

PEOs help you find the right people by:

• Providing recruiting best practices
• Providing job description development
• Providing new hire salary information
• Providing interview guidelines and assistance
• Providing candidate assessments
• Managing new hire forms and processes

PEOs help you develop and manage your people by:

• Providing employee development best practices
• Providing an employee information management system (HRIS)
• Providing employee skills and assessment tools
• Providing performance management tools
• Providing employee orientation programs
• Providing employee training and development tools

PEOs help you retain your best employees by:

• Providing employee retention best practices
• Providing attractive employee benefit options
• Providing employee assistance programs
• Providing employee discount programs
• Providing reward and recognition programs
• Providing sample flexible work arrangements

PEOs help you manage the paperwork by:

• Providing HR forms and processes
• Providing time and attendance systems
• Providing online payroll and HR systems
• Providing unemployment claims administration
• Providing COBRA, FMLA and Section 125 Administration
• Providing full benefits enrollment and administration services

PEOs help you protect your business by:

• Implementing HR policies and best practices
• Assisting with employee on-boarding and off-boarding processes
• Managing employment related regulatory compliance
• Providing workers’ compensation coverage
• Providing workplace safety evaluations and assistance
• Providing drug free workplace programs

Why PEO Brokers of America

PEO Brokers of America works with many different PEO’s. This approach allows us to find the right PEO for each client. For more information or for a free quote call or email us today at (888)370-5406 or info@peoboa.com.

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In today’s complex and ever-changing health care climate, each year seems to bring about new regulatory and market challenges for the business owner … and, 2016 will be no different.The definition of “small group” in regard to business health insurance is changing next year, affecting many employers and employees. Prior to 2016, groups with up to 50 employees were considered small, requiring them to follow a certain set of rules and regulations, including those related to essential health benefits, actuarial value and premium rating restrictions.For 2016, the maximum number of employees for a small group will increase to 100. As businesses with 51-100 employees renew or purchase new coverage, they will face more restrictive rating rules than before. This will have an effect on relative premiums for groups, increasing for those that are younger/healthier and reducing for older/sicker workers.Companies with 51-100 employees will also be subject to the shared responsibility provisions in 2016 that already apply to large groups with over 100 employees. Under these rules, employers will face penalties if they have employees who obtain subsidized coverage in an exchange or don’t offer coverage that meets certain value and affordability requirements.Insurance providers are preparing for the next renewal cycle with products that are designed to help keep costs down with networks that are tiered or narrower, private exchange options, defined contribution models, health savings options, and more.

Many employers are also considering new plans that will be coming on the market in 2016 to self-insure. Since self-insured health plans are not subject to ACA health insurance fees or state premium taxes and are exempt from rating rules and benefit requirements, they can be more flexible regarding coverage and design, and their costs can more directly reflect their actual claims.

Now that larger employers are being reclassified as small groups, PEO’s can help level the playing field for any size business. A PEO can help get the lowest rates and best healthcare plans for any size group.

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Imagine what happens when your people are managed well and appreciated; they’re more productive and satisfied. Now remember the last time you lost a valuable employee. Your company felt that pain in many ways, through lost productivity, lost time and lost experience.

The truth is, your employees are your human capital and they are your greatest asset. Your competitors can open up shop and begin operating their business right next door to yours. They may even start offering similar products and services to yours, and they may even begin matching or beating your pricing but there is one distinct advantage your business will have over theirs – your people.

Your company’s success hinges on maximizing your most valuable asset. But without adequate time, resources and technology, it’s very difficult to find the right people,  develop and manage your people, manage the paperwork and protect your business.

PEOs Provide Human Capital Management Expertise

By tapping the expertise of a Professional Employer Organization for human capital management you receive an array of solutions your company can use to maximize its most valuable asset whether you have 5 employees or 500. With a Professional Employer Organization(PEO), you’ll have more to focus on running your business, boost your bottom line and put your people first.

PEOs help you find the right people by:

• Providing recruiting best practices
• Providing job description development
• Providing new hire salary information
• Providing interview guidelines and assistance
• Providing candidate assessments
• Managing new hire forms and processes

PEOs help you develop and manage your people by:

• Providing employee development best practices
• Providing an employee information management system (HRIS)
• Providing employee skills and assessment tools
• Providing performance management tools
• Providing employee orientation programs
• Providing employee training and development tools

PEOs help you retain your best employees by:

• Providing employee retention best practices
• Providing attractive employee benefit options
• Providing employee assistance programs
• Providing employee discount programs
• Providing reward and recognition programs
• Providing sample flexible work arrangements

PEOs help you manage the paperwork by:

• Providing HR forms and processes
• Providing time and attendance systems
• Providing online payroll and HR systems
• Providing unemployment claims administration
• Providing COBRA, FMLA and Section 125 Administration
• Providing full benefits enrollment and administration services

PEOs help you protect your business by:

• Implementing HR policies and best practices
• Assisting with employee on-boarding and off-boarding processes
• Managing employment related regulatory compliance
• Providing workers’ compensation coverage
• Providing workplace safety evaluations and assistance
• Providing drug free workplace programs

Why PEO Brokers of America?

We help place our clients with the right PEO for their business needs. We take the hassle out of finding the right PEO for your business. Contact us today for more information!

888.370.5406

info@peoboa.com

request a quote

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Dallas, TX: An employment class action lawsuit has been filed against Michaels Stores Inc, on behalf of certain current employees and online job applicants, hired or not, based on allegations that Michaels violated their privacy rights. The lawsuits are in connection with background or consumer reports obtained through Michaels’ online application for employment.

The lawsuit alleges it is unlawful for an employer, like Michaels, to procure a background report concerning a job applicant or employee unless a “clear and conspicuous” disclosure is made in a stand-alone document that “consists solely of the disclosure” informing the applicant or employee that a report may be obtained for employment purposes.

A class action complaint was originally filed in the United States District Court Northern District of Texas in January, and the case has been subsequently transferred to multi-district litigation in the United States District Court District of New Jersey for pre-trial proceedings.

Cases were originally filed in Texas, Missouri, and New Jersey. On March 26, 2015, a panel of seven federal judges reviewed the cases and ordered that all pre-trial matters be heard by one judge.

Under the applicable law, statutory compensation is available to those whose privacy rights have been violated. Plaintiffs are represented by Jamie McKey at the Kendall Law Group.

For more information on how PEO Brokers of America can help  your company manage labor law issues, contact us today!

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The way we do work is always changing.

As new technology continually makes us more efficient, and evolving collaboration strategies have a noticeable impact on the dynamics within the workplace, every organization finds itself dramatically different at the start of a new year from the way it was 12 months ago.

The year 2014 was absolutely not an exception, as new mobile and cloud-based tools brought major change to work as we know it.

What’s interesting is that every time work changes, in theory human capital management should, too. If our employees are modifying their strategies over time, then how is the HR function adapting and keeping up?

That should be an especially salient question now, in early January of 2015. If workers are setting New Year’s resolutions, then those responsible for human capital management (HCM) strategies should consider doing the same. I blogged earlier about why I believe 2015 will be the year of the employee, and data is starting to back this up.

What employers need to be doing

According to Benefits Pro, there’s been a great deal of research into what new trends should be expected to shape HR in 2015. Deloitte Consulting has led the way, revealing its expectations for the new year in, Predictions for 2015: Redesigning the Organization for a Rapidly Changing World. In it, Deloitte principal Josh Bersin notes that the rise of Millennials and the arrival of the “24/7 work environment” amid a changing tech climate have converged to change the game.

The report states that,

Employers will be challenged to re-engineer the workplace, rethink jobs and reshape the way to attract, engage and manage people if they are to drive business performance amidst a growing global economy in 2015. Organizations should focus on bold, innovative strategies to develop leaders, engage employees and foster a healthy workplace culture if they want to succeed in a global environment where competition for talent will be fierce.”

So what strategies in particular are likely to be big in 2015? Here are five (5) in particular:

1. Redesigning performance management

Organizations are becoming more progressive about the way they oversee their employees.

Companies are becoming less reliant on the annual appraisal process. The new model is one that promotes agility and transparency, allowing for staff members and their managers to collaborate on guiding the workforce together.

2. Helping the overwhelmed employee

Our colleagues find themselves overworked and stressed – for these individuals, it’s time to do something constructive to help them.

In 2015, in addition to implementing employee assistance programs (EAP) that focus on wellness, HR may want to look at ways to redesign the schedule to liberate the overwhelmed parties, especially shift-based workers.

3. Emphasizing corporate learning

Increasingly in the future, we’ll realize that job skills are the most important currency in the world.

For this reason, organizations will make learning a top priority so that their talent can develop and shine.

4. Investing in talent acquisition

Of course, it’s also a matter of bringing in high-quality people in the first place.

That’s why organizations in 2015 are likely to invest in better recruiting technologies to help them track down the best possible talent.

5. Developing HR itself

Last but not least, the HR department can only reach its full potential if it’s well-staffed, right?

Human capital management leaders should take a moment this year to develop the talents of their own internal people. As the HR function is transforming into a business partner, it will be critical to developing business acumen, underscored by tying HR efforts to the goals of the company.

Originally Posted @Ceridian’s HCM blog.

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The Occupational Safety and Health Administration (OSHA) released a new version of its compliance poster, last updated in 2007.

OSHA’s compliance poster is free and can be downloaded and printed out. Employers must display the poster in a conspicuous place where workers can see it. Previous versions of the poster do not need to be replaced.

The newly designed poster informs workers of their rights to request an OSHA inspection of their workplace, receive information and training on job hazards, report a work-related injury or illness, and raise safety and health concerns with their employer or OSHA without being retaliated against.

The poster informs employers of their legal obligation to provide a safe workplace. In addition, it has been updated to include the new reporting obligations for employers, who must now report every fatality and hospitalization, amputation, and loss of an eye. It also informs employers of their responsibilities to train all workers in a language and vocabulary they can understand, comply with OSHA standards, and post citations at or near the place of an alleged violation.

@SHRM

The OSHA Job Safety and Health: It’s the Law poster, available for free from OSHA, informs workers of their rights under the Occupational Safety and Health Act. All covered employers are required to display the poster in their workplace. Employers do not need to replace previous versions of the poster. Employers must display the poster in a conspicuous place where workers can see it.

You can print out your copy using this link: High resolution PDF

For more information on how PEO Brokers of America can help your company manage risk and safety issues, contact us today!

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Employers without a paid sick time policy should start drafting one that complies with the law’s requirements

California has joined a growing number of jurisdictions mandating employers to provide paid sick leave to their employees, including part-time and temporary workers. Below is a summary of the California law’s key points:

Effective dates

There are two dates to keep in mind: January 1 and July 1.

The employer’s obligation to provide paid sick leave under the law does not take effect until July 1, 2015.

However, on Jan. 1, 2015, covered employers are required to:

• Post in a conspicuous place at the workplace a poster containing various requirements under the law. A compliant poster is available on the California’s Division of Labor Standards & Enforcement (“DLSE”) website.
• Issue newly hired nonexempt employees an updated “Notice to Employee” (required under California Labor Code section 2810.5) that includes paid sick leave information. A revised “Notice to Employee” form is available on the DLSE’s website. The law is not clear as to whether current nonexempt employees must be reissued a new “Notice to Employee” after January 1, or if the poster will suffice.

Covered employers 

Employers who employ at least one employee who works in California at least 30 days within a year from the commencement of their employment, on or after Jan. 1, 2015, are covered by the California law.

Covered employees

Employees are eligible for paid sick leave if they are not covered by one of the limited exemptions to the law (discussed below); and they work for an employer on or after Jan. 1, 2015, for at least 30 days within a year from the commencement of employment.

The law applies to part-time, temporary, seasonal and per diem employees. The law also applies to employees who are exempt from overtime requirements.

According to the DLSE, employees must have been employed for 90 days before they begin using their sick leave. However, employers must provide the leave at the commencement of employment or July 1, 2015, whichever is later.

Employees exempted

Under specified conditions, the law does not apply to the following types of employees:

• Employees covered by a valid collective bargaining agreement that provides for paid leave for sickness and other terms of employment
• Employees in the “construction industry” covered by a valid collective bargaining agreement under certain conditions
• Providers of in-home supportive services
• Employees of an air carrier as a flight deck or cabin crew member under certain conditions

By: InsideCounsel.com

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McDonald’s gets a lot of bad press for its low pay. But there’s an even bigger offender when it comes to fast food companies underpaying their employees: Subway.

Individual Subway franchisees have been found in violation of pay and hour rules in more than 1,100 investigations spanning from 2000 to 2013, according to a CNNMoney analysis of data collected by the Department of Labor’s Wage and Hour Division.

Each investigation can lead to multiple violations and fines. Combined, these cases found about 17,000 Fair Labor Standards Act violations and resulted in franchisees having to reimburse Subway workers more than $3.8 million over the years.

It’s a significant sum considering many Subway “sandwich artists” earn at or just above the minimum wage of $7.25 an hour.

The next most frequent wage violators in the industry are McDonald’s (MCD)and Dunkin’ Donuts(DNKN) stores.

The numbers only reflect unlawful acts that have been caught. To be fair, Subway has more than 26,000 locations throughout the country — the most of any fast food chain — so it might not be surprising that it also tops the list of offenders.

That said, Subway’s problems were considered serious enough to prompt the Department of Labor (DOL) to partner with the company’s headquarters to boost compliance efforts last year.

“It’s no coincidence that we approached Subway because we saw a significant number of violations,” a Department of Labor spokesperson said.

The franchise model impact

In cases like these, the corporate parents like to draw a distinction between themselves and their independently operated stores. While Subway declined to comment for this article, both McDonald’s and Dunkin’ Donuts submitted comments to that effect.

Dunkin’ Donuts noted its franchisees “are solely responsible for all employment decisions at their restaurants,” and McDonald’s cautioned “against drawing broad conclusions based on the actions of a few”. (Read their full comments at the end of this article).

Related: 10 big overtime pay violators

The fast food franchise model provides a layer of protection for Subway, McDonald’s and Dunkin’ Donuts. Even though fast food locations may look the same and restaurants abide by similar branding and business guidelines, each franchise owner is treated essentially as a small business.

Meanwhile, the corporate parents can distance themselves from being found liable of labor violations.

This makes the Labor Department’s enforcement efforts harder. Consider that the agency can investigate a large company like Wal-Mart in one fell swoop and order changes to all Wal-Mart stores nationwide (as it did following certain overtime violations in 2012), but it cannot do the same for a chain restaurant.

To crack down on wage violations in the fast food industry, the DOL has to investigate each franchise individually.

Over the last few years, DOL has been doing exactly that, intensifying its focus on so-called “fissured workplaces.” These are businesses in which there’s an indirect relationship between the worker and the parent company that ultimately benefits from their labor. Not limited to just franchises, this category also includes companies that rely on independent contractors or staffing agencies.

Restaurants and hotels in particular, are a major focus, not only because they fall into this category, but also because they employ a large share of low-wage workers.

Wage violations are common

A 2009 study by several think tanks estimates about 18% of restaurant and hotel workers face minimum wage violations, 70% face overtime violations and 74% encounter what are known as “off-the-clock” violations, where workers are expected to do tasks without being paid.

Common incidents include employers forcing workers to deduct a 30-minute lunch break, even though the employee didn’t take a break. Some workers are forced to pay for a company uniform, which can be a violation if, after deducting that expense, the worker’s hourly rate falls below the minimum wage.

In a 2012 lawsuit, a Subway franchisee in Ohio, Hray Enterprises, was found in violation of labor laws after it failed to pay employees for the time they spent doing the nightly closing routine. For example, Hray Enterprises might say a worker’s shift stopped at 10 p.m. when it actually took another half hour to shut the restaurant down and clean up.

The franchise also made illegal deductions from employees’ wages when there were cash register shortages, causing their pay to fall below the federal minimum wage. These were repeat offenses, and owners Joseph and Tammy Hray were ordered to pay $9,900 back to 72 employees. The Hrays could not be reached for comment.

These are small amounts, but they add up for low-income workers.

Some employers also try to skirt overtime rules by asking workers to sign contracts waiving time-and-a-half pay. Such was the case at a Subway franchisee in Michigan, Farha Group #4, which operated eight restaurants. Following a Department of Labor investigation, the company agreed to pay 53 workers back wages and damages totaling nearly $52,000.

Starbucks CEO backs higher minimum wage

The Fair Labor Standards Act, known as the FLSA for short, requires most fast food employees be paid at least the federal minimum wage of $7.25 an hour, plus time-and-a-half for any work beyond 40 hours a week.

Employers are also required to maintain accurate time and payroll records.

Labor law violation lawsuits on the rise

In addition to the Department of Labor’s investigations, there has also been a rise in private lawsuits related to wage and hour complaints. Lawsuits related to FLSA violations reached a record high in 2013, according to law firm Seyfarth Shaw.

But few private cases have focused on the fast food industry. Instead, plaintiff’s attorneys have gone after higher paying industries like financial services in pursuit of larger payouts.

“It’s only now that the fast food industry is getting attention from the private sector, probably because of all the organizing and workers speaking out,” said Hollis Pfitsch, staff attorney for the Legal Aid Society.

That may change soon.

President Obama’s push for a higher minimum wage and expanded overtime pay are increasing awareness about FLSA laws among workers, said Brett Bartlett, a partner at Seyfarth Shaw who has represented companies in more than 100 wage and hour cases and even written a book on the subject.

“All of this chatter around minimum wage, overtime and these franchise issues is educating everybody about the laws,” he said. “We’re going to see an uptick in these cases.”

McDonald’s workers suing for wage theft

Unions are also pushing low-wage workers to organize. Seven lawsuits filed by McDonald’s workers in March alleging wage theft, for example, come as part of a movement backed by the Service Employees International Union.

In the McDonald’s lawsuits, the workers’ lawyers are arguing that the corporation should share liability with its franchisees — a move that breaks with most prior cases.

A similar situation occurred recently in a case filed by Domino’s employees and argued by Legal Aid attorneys Pfitsch and Karen Cacace.

While the original lawsuit was against a New York-based franchisee, the international corporation Domino’s Pizza (DPZ) was added to the suit as a joint employer after employees alleged the company held control over hiring policies, training, staff uniforms, point-of-sale systems and time and pay records. The case was settled with the franchisee agreeing to pay back wages to 61 employees, and Domino’s corporate parent agreeing to minor concessions.

If McDonald’s headquarters is found jointly liable in a similar way, this would be a big win for workers and could trigger more FLSA lawsuits filed against the mega fast food chains.

“For some of these restaurants, there are numerous, highly sophisticated plaintiffs’ law firms that have sued the corporate operations before and are hungry to find a way to connect the dots between the franchise operations and corporations. There’s a huge potential payoff,” Bartlett said.

Related: Fast food workers, share your story

Bartlett recommends restaurant corporations insist individual store managers participate in training programs and set up hotlines for workers, enabling them to anonymously report wage or hour complaints. While the corporate parents still need to maintain some distance, they can also include a line in their franchise agreements that gives them the right to inspect stores for compliance.

“The corporate headquarters want to make sure that its franchisees are complying with the law, but there’s a fine line that they have to avoid crossing. Overzealous compliance efforts might cause them to be deemed employers of the franchise employees,” he said.

It may not sound like much, but Subway’s compliance efforts currently include inviting Department of Labor staff to speak at its annual meetings and publish articles in the company newsletter. The department also provides FLSA posters to new franchise owners.

“We are quite excited at that collaboration that we do have with Subway,” said Laura Fortman, principal deputy administrator for the Department of Labor’s Wage and Hour Division. “We think it’s significant and can be a model for others.”

As for workers, “They don’t have to understand every complexity of the law. They need to know to just give us a call,” she said.

The Department of Labor has more information about wage and hour rules at www.dol.gov/whd and 1-866-4US-WAGE.

Corporate response

While Subway declined to comment, McDonald’s and Dunkin’ Donuts submitted the following responses to CNNMoney:

McDonald’s:

McDonald’s and our independent owner-operators share a concern and commitment to the well-being and fair treatment of all people who work in McDonald’s restaurants. Whether employed by McDonald’s or by our independent owner-operators, employees should be paid correctly. When McDonald’s learns of pay concerns in restaurants which we own and operate, we review the concerns and take appropriate action to resolve them. We trust that our independent owner-operators do the same. McDonald’s and our owner-operators employ separately but in total over 750,000 workers in the United States, and we caution against drawing broad conclusions based on the actions of a few.

Dunkin’ Donuts:

The Department of Labor report represents a very small percentage of cases per year involving the Dunkin’ Donuts system, given that there are more than 7,700 Dunkin’ Donuts restaurants independently owned and operated by our franchisees who employ approximately 120,000 crew members at any given time across the country. However, we and our franchisees, who are solely responsible for all employment decisions at their restaurants, take these matters seriously and are committed to the well-being and fair treatment of all crew members. 

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San Francisco, CA: Uber, the technology company behind the app of the same name, is facing an employment class action lawsuit filed by a former driver who claims that he and others similarly situated, are misclassified by the company as being independent contractors, when they are employees, in violation of California labor law. 

In the lawsuit, Abdo Ghazi, who was stabbed in the face by a passenger, claims that he is owed worker’s compensation by Uber, which he would automatically receive if he were classified as an employee. According to the complaint, “As a consequence of misclassifying its drivers, Uber illegally lowered its cost of doing business by fialing to secure payment of workers’ compensation insurance covering its drivers pursuant to California Labor Code 3700. Uber’s misclassification of drivers as independent contractors gave it an unfair advantage over competing transportation companies, harmed Uber’s drivers and violated California law.”

The lawsuit seeks to reclassify Uber drivers as employees. Anyone who is an Uber driver, or who has worked in that capacity, is included as a plaintiff in the suit.

For more information on how PEO Brokers of America can help provide your company manage labor law issues, contact us today!

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