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Labor/Employment

Apr. 29, 2020

Pandemic unemployment aid intensifies debate over classifying gig workers

Companies that employ many of the workers who would benefit from the assistance — including Uber and Lyft — do not pay into the state unemployment insurance fund on behalf of those workers because they argue they are independent contractors.

The federal Pandemic Unemployment Assistance program extends relief to workers and employees who don't have access to state benefits, but it would almost certainly put pressure on gig economy companies to start paying into the state unemployment insurance fund as government resources continue to diminish due to COVID-19, attorneys say.

The state Employment Development Department began accepting online applications Tuesday. Under th...

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