Higgins v. Missouri Division of Employment Security

**Higgins v. Missouri Division of Employment Security: Court Rules Cab Drivers Are Employees** This case involved a dispute over whether cab drivers working for City Cab Co. and American Cab Co. were employees or independent contractors. The company owner, Bonnie Higgins, argued that the drivers shouldn't be entitled to unemployment benefits because she didn't directly "pay" them and claimed they were independent contractors, not employees. The Missouri Court of Appeals disagreed and ruled against Higgins. The court upheld a previous decision by the Labor and Industrial Relations Commission that found the cab drivers were indeed employees who deserved unemployment insurance coverage. The court rejected the owner's arguments about payment structure and worker classification. This decision matters significantly for workers in similar situations. It shows that courts will look beyond how an employer structures payments or labels workers to determine the true nature of the working relationship. Many employers try to classify workers as independent contractors to avoid providing benefits like unemployment insurance, workers' compensation, and other protections. This ruling reinforces that workers who function as employees should receive employee benefits and protections, regardless of what their employer calls them or how they receive payment.