Sprig to reclassify large numbers of workers from contract to full employee status

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Date: Friday, August 7th, 2015, 06:13
Category: Legal, News, retail


There’s only so long that people will be content to work as “contractors”.

Health food delivery startup Sprig seems to be acknowledging this, as the company will soon offer its hundreds of contract workers employment at the company.

Over the past few months, startups like Instacart, Shyp and Luxe have all switched their workers to W-2 employees rather than independent contractors. The main difference between the two is that with W-2 employees, employers have to “withhold income taxes, withhold and pay Social Security and Medicare taxes, and pay unemployment tax on wages paid to an employee,” according to the Internal Revenue Service.

While this change also reflects an era in which on-demand services are being hit with lawsuits over the status of their employees, representatives from Sprig have said that the goal is to implement the change over the next 90 days and to be able to provide its servers with ongoing training and development, and reward its top performers and most tenured servers with stock option grants.

Stay tuned for additional details as they become available.

Via TechCrunch

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