The Gig Economy’s Effect on our Industry
On July 17th, the Board of Directors and Richard Polsinello attended a meeting with several Directors of the New York State Department of Labor. The objective of this meeting was to address the unfair competitive advantage that the App Based Delivery services currently have due to NYSDOL not enforcing the current Guidelines for Messenger and Couriers that are in effect.
The new gig economy and their technology are affecting all of our businesses and most of all still maintain a 20-45% price advantage over traditional courier companies.
The NYSMCA Board will share meeting notes, results, and a comprehensive strategy on how we can level the playing field.
The Freelance Act Isn’t Free
The New York City Council enacted the first of many more laws to address what they perceive to be the shortcomings of the “GIG economy. Entitled The Freelance Isn’t Free Act, the law was intended to protect individuals that perform services on a one-off basis — with the right to receive a written contract, guaranteed timely payment, and protection for retaliation.
The law however is ill-defined and can be applicable to many industries including the last mile delivery provider. This law establishes penalties and double damages in some instances where violations are found. And can ever serve as new claim for class-action attorneys. Edwards Lifesciences Corp.
The only response is to understand the law and its prescriptions before confronted with one of these claims.
Peter Fidopiastis from SCI, Inc. will be the guest panelist on this topic.
Appellate Court Nixes Employee Arbitration Agreements
A startling decision issued from the First Department, Appellate Division, dated July, 19, 2017 (which has jurisdiction over Manhattan & the Bronx) held that arbitration agreements obligating employees to waive their rights to bring collective disputes such as class actions regarding wage disputes, were unlawful and unenforceable because they run afoul of the National Labor Relations Act.
What Does This Mean for Employers?
Since arbitration agreements with class action waivers may no longer offer employers protection from class actions in state trial courts, employers are encouraged to review and evaluate their current wage and hour practices, implement regular self-audits and reviews and undertake immediate corrective action in the event non-compliance is identified.
We encourage you and your team (directors of human resource, or key employees) to attend our next seminar and learn best practices to mitigate your risk and protect your companies.
Stephen Zweig & Eric Sue of Ford & Harrison LLP will be our guest panelist and walk us through the nuances of the decision, how it came about, and what you can do to protect yourself.