Website Article by Steven Martinez on 14th Mar 2019 in “www.truckinginfo.com” that Knight-Swift Agrees to pay $100 Million in misclassifications Lawsuits.
Independent Contractor: A person who works for against an agreement or contract with on his to meet the agreed output / services with out intervenes of other parties or employer.
Employer Relationship with Independent Contractor: There is no relationship with Contractor and Principle employee, Principle employer does not have any control over the Contractor. The employer can communicate only the required service/output. It up to the contract to follow his process to obtain the agreed service/output. Employer should control his process for producing such product or providing the services.
Nature of Work: Contractor has to bring the required equipment and tool on his to perform his obligations, in case of employee the employers will give the necessary equipment and tools.
Payment or Wages: Will be given to the contractor based on completion of work and agreed in the contract ,whereas the employee will get the payment by every month or regular intervals.
Leave: Independent contractors has advantage of taking leaves on his own, he obliged to complete task as the agreed time line. Where the employees should be paid for leave other than allowable limit.
In the swift Corporation case Case No: "2.10 CV 00899" from this case file the following points where proved the employer employee relationship between the employers and the independent contractors.
1) The direct control over the drivers, the drivers were asked to drive more than 16 to 20 Hours in a day.
2) The companies collateral to the drivers for getting loan for the vehicle, in case if any default by drivers the vehicle were seized by the companies.
3) The driver income is lessor than the minimum wage of employee working in the organizations.
All these said points(1-3) was the evidence found in the said case no: "2.10 CV 00899" for the employer employees relationship. Which is proved as the wrong classifications of employment. Hence the Swift corporation is agree to pay the settlement.
This similar cases in Indian context also and the Indian Legal system also evaluating the same method to differentiate Employee Vs Independent Contractors.
The following case were the example few case.
The Supreme Court in the case of Shining Tailors v. Industrial Tribunal II, U.P.3,
Dharangadhra Chemical Works V State of Saurashtra
Ram Singh Vs Union Territory of Chandigarh
Lakshminarayan Ram Gopal & Sons Vs Gov. of Hyderabad
References: https://www.freightwaves.com/news/driver-issues/contractors-claim-great-victor-in-100-million-knight-swift-settlement”
https://www.businessinsider.com/truck-drivers-100-m-back-pay-swift-2019-3
" https://www.icsi.edu/media/website/IndustrialLabour&GeneralLaws.pdf"
http://www.supremecourtcases.com/index2.php?option=com_content&itemid=1&do_pdf=1&id=778
Vikram Sharoff Articles in Legal Era. July 11, 2018
Business Management 