An independent platform, Tagg Education LLC, has filed a legal challenge against a new Colorado rule requiring it to consider substitute teachers as employees, urging a Colorado state court to prevent the policy from going into effect on July 1.
In a complaint filed Saturday against the Colorado Public Employees Retirement Association (PERA) in Denver District Court, Tagg Education argued that the new rule is already harming its business and violates the state Administrative Procedure Act, the Colorado Employment Security Act, and PERA’s regulations.
“As the effective date of the rule grows nearer, and schools plan for the upcoming academic year and their annual budgets, Tagg reasonably foresees that the substitute rule will continue to cause increased harm to its business,” Tagg stated in the complaint.
Tagg explained that each individual who engages with the company signs an independent contractor agreement and is paid by the schools they work at, without their wages being subject to PERA obligations as withholdings.
