Thursday, July 30, 2015

Luxe Shifts Workers To Employee Status

On-demand, valet parking app developer Luxe, which launched into Los Angeles back in January, said this morning that it is shifting all of its 1099 contractors to W2 full- and part-time employees. Luxe said it will begin rolling out its new employee model immediately. Luxe said the change will mean health insurance for full time employees, and that it will now pay for expenses such as phones, jackets, and other work related equipment. Luxe is the latest in a growing number of "on-demand" startups who have suddenly decided that they are better off classifying their on-demand workers as employees, rather than as contractors; previously, many startups had used that contractor status to minimize their human resource costs--particularly in the face of lawsuits against Uber, Lyft, Instacart, and others.

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