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President Biden’s Labor Secretary, Marty Walsh, was recently quoted as saying “in a lot of cases, gig workers should be classified as employees.” Not only did Secretary Walsh’s statement cause many gig companies’ stocks to dip, his words stoked speculation that the federal government, as well as many states, will push even harder to require gig companies to classify their workers as employees.
Gig companies facing these pressures are certainly thinking about the myriad of issues presented by the prospect of being forced to reclassify their independent contractors as employees. And while wage and hour issues are the typical compliance areas that are immediately addressed at that point, gig economy companies – and any other business using contract labor – also need to consider the oft-hidden legal issues related to Form I-9 compliance and immigration law. These missteps can be devastatingly expensive if not properly addressed.