On October 14, a group of 17 “agency operators” for jointly-owned Avis Rent a Car and Budget Rent a Car filed a class action lawsuit in California alleging that the rental car agencies misclassified them as independent contractors (ICs) instead of employees. Although the agency operators acknowledge that they each signed “Agency Operator Agreements” that classified them as ICs, the lawsuit alleges that, in practice, Avis and Budget exercised “total control” over each agency operator.
While many types of functions can be structured and documented in a manner consistent with a lawful and legally compliant IC business model, the allegations in this lawsuit indicate that these rental car companies may not have structured, documented, or put their independent contractor compliance models into practice in a manner that complies with the law.
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