How should you classify your delivery worker?
As a business owner, you would have to determine delivery worker status in NY when classifying your employees. This is true for restaurant owners and other companies that have delivery services.
The issue in question is whether to classify the worker as an independent contractor or an employee. The NYS Appellate Division heard a case in 2018 that rendered a significant finding regarding this concern.
Details of the Case Ruling on Delivery Worker Status in NY
Previously, in the following case the Unemployment Insurance Appeal Board had ruled that the company owed unemployment insurance compensation to its delivery workers.
The company Postmates, Inc. uses a web-based platform that enables customers to request pick-up and delivery from local stores and restaurants. The claimant in the case was a delivery worker who applied for unemployment compensation after the company terminated its relationship with him. The company based the termination on negative feedback and/or fraudulent activity. The Unemployment Insurance Appeal Board ruled that an employer-employee relationship existed and required the company to pay the unemployment benefits. This would have applied to all delivery workers the company had used and terminated.
However, the appellate court reversed the decision. It stated there was not adequate evidence to support the existence of an employer-employee relationship. Therefore the independent contractor classification was valid.
The court based its decision to uphold independent contractor status due to the fact that the company did not:
- Interview the carriers
- Require employment applications
- Set up a work schedule for the worker (no maximum or minimum time on the job)
- Require workers to report to a supervisor
- Place demands on the worker to accept or reject assignments without penalty
- Prohibit the worker from working for competitors
- Establish a method for the worker to make the deliveries
- Require workers to wear uniforms or company ID
- Reimburse workers for delivery-related expenses
Reference: Matter of Vega (Commissioner of Labor)
Do you have questions about your workers’ classification?
If you have questions or concerns, consult with our attorneys at Stephen D. Hans & Associates, P.C. We are glad to provide you with experienced legal guidance. Call (718) 275-6500 to arrange an appointment.