Regulations

Carey Independent Operators Reject Proposed Employee Model

Posted on February 9, 2012

[UPDATE 2/16/2012: Headline and sub-headline clarified to reflect status of proposal]

WASHINGTON, D.C. --- The following statement from Carey International was released exclusively to LCT Magazine Thursday morning:

"Carey Limousine L.A., Inc. and Carey Limousine S.F., Inc. (collectively, “Carey”) have operated under an independent contractor business model for many years. This model was beneficial to both Carey and its independent operators; our contractors were able to operate with the freedom of small business owners, and Carey was provided the services of the best chauffeurs in the industry.

"In recent years, however, there has been increased litigation aimed at companies that contract with small business owners to provide services. While Carey is confident that its business model conforms to California law, the companies decided that they needed to respond to the increased risk. Therefore, in January, Carey opted to move from an independent contractor model to an employee model, and to offer all of our independent operator owners the opportunity to become employees. Immediately, the response from our independent operator owners was unequivocal — and negative. Overwhelmingly, they were in favor of maintaining their businesses and continuing to provide service to Carey under their contracts.

"Carey values the professionalism and exceptional service of its independent operator owners, and we took their concerns very seriously. After careful deliberation and many conversations with them, Carey rescinded the notices of contract termination that we sent to our California independent operators, save those few that expressed their desire to become employees.

"We are grateful for our communications with Carey’s independent operator owners, and we look forward to continuing to work with them into the future."

[EDITOR'S NOTE: More information will be forthcoming when it becomes available from Carey. LCT Magazine will update developments as warranted].

Source: Diane M. Ennist, senior vice president and general counsel, Carey International

Related Topics: Carey International, employee vs independent contractor, managing chauffeurs

Comments ( 2 )
  • FO

     | about 6 years ago

    Has anyone heard how the states will react to back taxes if you decide to take the IRS offer to switch to employee status?

  • See all comments
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