Today’s issue of WorkCompRecap features some news from the constantly evolving ‘gig economy’, as the Alaksa DOLWD’s Workers’ Comp Division has announced that it has reached a settlement with Uber over what it is calling worker misclassification whereby Uber was classifying drivers as independent contractors, and as such was not required to pay unemployment insurance, taxes, and workers’ compensation premiums.
Under the settlement terms, Uber has agreed to pay $77,925 to the state’s Workers’ Comp Guaranty Fund, which covers uninsured injured worker claims, and has agreed to stop operating in Alaska unless it classifies drivers as employees or until it is in compliance with state law. The Workers’ Comp Division noted that the settlement is part of a broader state and federal effort to reduce worker misclassification.
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