New York State Department of Labor Misclassification – Delivery Workers Were Independent Contractors

In a major victory for businesses, the NYS Appellate Division ruled that Postmates Inc. did not misclassify couriers as independent contractors.  On or about June 21, 2018, the court’s decision, In the Matter of the Claim of Luis A. Vega (Respondent), Postmates Inc., (Appellant) and Commissioner of Labor (Respondent), reversed the Unemployment Insurance Appeal Board’s decision, which had found that Postmates Inc. was liable for unemployment insurance contributions to Mr. Vega and all others similarly situated.  Not only would the Unemployment Insurance Appeal Board’s decision have had a significant monetary impact, it would have affected the company’s business model moving forward. The Company would have to change the classification of the delivery couriers moving forward. This could have caused many domino effects. If you have any questions regarding a Department of Labor Audit or proper classification of your workers, contact our office to…

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