Suit Claims Uber Saves Huge Sum By Misclassifying Drivers
The class action filed by Diva Limousine blames Uber's predatory pricing strategies for hurting legitimate chauffeured services.
TOLEDO, Ohio — The Toledo Blade has reported that Ibe Nnaji, the owner of Toledo Livery Service, has pleaded guilty to a disorderly conduct charge in Toledo Municipal Court for misclassifying employees as subcontractors and failing to maintain workers’ compensation coverage.
The Toledo Municipal Court has ordered Nnaji to pay $13,612.92 in restitution to the Ohio Bureau of Workers’ Compensation and sentenced him to 30 days in jail, which was suspended for five years of probation.
Toledo Livery Service was audited in 2008 after its workers’ compensation policy lapsed in 2007. The company was placed on notice and billed the appropriate premiums. After failing to comply with the state’s notices, Nnaji was brought up on charges in April, 2010. Prior to 2003, the company’s employees were categorized differently. When it came to light that Nnaji changed the way his employees were recorded, the state took action.
A second audit revealed that in addition to failing to renew his coverage, Nnaji had continually misclassified his workers throughout the previous decade, officials said.
Nnaji said he thought he was in compliance with state law and did not intentionally commit fraud. He said he accepted a plea deal in order to put the issue behind him.
“We had mixed signals from the state,” he said. The state said the case involved five employees.
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Source: Toledo Blade
Related Topics: employee vs independent contractor, independent contractor issues, legal issues, Ohio operators, workers’ comp
The class action filed by Diva Limousine blames Uber's predatory pricing strategies for hurting legitimate chauffeured services.
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