Richard J. Reibstein

Richard J. Reibstein

Pepper Hamilton LLP

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April 2016 Independent Contractor Misclassification and Compliance News Update

This past month involved the settlement of a number of high profile IC misclassification cases. In one case, a federal court gave conditional approval to a $226 million settlement between FedEx and its Ground Division...more

5/9/2016 - Attorney's Fees Class Action DOL Employer Liability Issues FedEx FLSA Independent Contractors Lyft Misclassification NLRA NLRB Settlement Agreements Sharing Economy Trucking Industry Uber Unfair Labor Practices Unions Wage and Hour

Is the NLRB Trying to Make Independent Contractor Misclassification an Unfair Labor Practice?

A Regional Director for the NLRB issued an unfair labor practice complaint on April 18, 2016 alleging that a transportation company “has misclassified its employee-drivers as independent contractors, thereby inhibiting them...more

4/22/2016 - ALJ Corporate Counsel Employer Liability Issues FLSA Independent Contractors Misclassification NLRA NLRB Trucking Industry Unfair Labor Practices Unions Wage and Hour

Uber Tries to “Lyft” Itself Out of Two Independent Contractor Misclassification Lawsuits By Settling for Up To $100 Million – But...

Only two weeks after a federal court judge in California rejected a proposed $12.25 million independent contractor misclassification settlement between Lyft and its drivers in California because it “shortchanged” the drivers...more

4/22/2016 - Class Action Corporate Counsel Employer Liability Issues Independent Contractors Lyft Misclassification Settlement Agreements Sharing Economy Uber Wage and Hour

March 2016 Independent Contractor Misclassification and Compliance News Update

The cases reported in this update continue to reflect the fact that IC misclassification cases cut across virtually all industries. Below are IC misclassification cases from such diverse industries as insurance, ride-sharing,...more

4/6/2016 - ABC Test Class Action Class Certification DOL Employee Definition Employment Tax ERISA FLSA Independent Contractors IRS Lyft Misclassification Restaurant Industry SCOTUS Sharing Economy Standard OIl Uber Unemployment Benefits Unions

Opposition to Lyft’s $12.25 Million Independent Contractor Misclassification Settlement May Cause Court to Nix the Deal

Papers were filed in court today formally opposing the deal that Lyft agreed to with the lawyers representing over 100,000 Lyft drivers in their class action brought in the federal court in San Francisco. The objectors were...more

3/16/2016 - Class Action Independent Contractors Lyft Misclassification Popular Settlement Agreements Sharing Economy Wage and Hour

February 2016 Independent Contractor Compliance and Misclassification News Update

In February 2016, two federal appellate courts ruled in favor of companies in IC misclassification cases: one where the NLRB was reversed in a decision where the agency had found stagehands to be employees and not ICs; the...more

3/2/2016 - Amazon Marketplace Class Action Home Health Care Independent Contractors Misclassification Motor Carriers NLRB Preemption Staffing Agencies Wage and Hour

Minimizing Independent Contractor Misclassification Risk: “Play it Safe” or “Play it Smart”

Frances McMorris, who covers the transportation and hospitality industries for American City Business Journals (ACBJ), wrote an article on January 29 about the impact of the latest Uber lawsuit on businesses that use...more

2/24/2016 - FedEx Independent Contractors Misclassification Uber Wage and Hour

December 2015 / January 2016 Independent Contractor Compliance and Misclassification News Update

This Update covers the two-month period of December 2015 and January 2016. The headnote for this period is: don’t classify drivers as ICs unless you do it right! Eight of the nine cases reported below involve drivers....more

2/2/2016 - Amazon Marketplace Corporate Counsel Delivery Drivers DOL Hospitality Industry Independent Contractors Lyft Misclassification Popular Taxi Cabs Uber Unemployment Insurance Wage and Hour Young Lawyers

Uber Suffers Setbacks #3 and #4 in Independent Contractor Misclassification Class Action

Over the last nine months Uber has suffered one legal setback after another in the class action independent contractor class action lawsuit filed against it in federal court in San Francisco. Yesterday was perhaps its worst...more

12/11/2015 - Class Action Independent Contractors Misclassification Popular Uber Wage and Hour

November 2015 Independent Contractor Compliance and Misclassification News Update

PORT TRUCK DRIVERS FILE ANOTHER CLAIM AGAINST TRUCKING COMPANIES IN CALIFORNIA FOR IC MISCLASSIFICATION. - Long Beach and Los Angeles port truckers, who allege that they have been misclassified as independent...more

12/8/2015 - Independent Contractors Misclassification Trucking Industry Uber Wage and Hour

Are Direct Selling Companies the Next Targets for Independent Contractor Misclassification Claims?

Recently, Mary Kay, Inc. was sued in New Jersey for allegedly misclassifying a class of direct sellers as independent contractors in violation of the New Jersey Wage Payment Law. While there are direct seller exemptions from...more

12/2/2015 - Employer Liability Issues Independent Contractors Misclassification Wage and Hour

September/October 2015 Independent Contractor Compliance and Misclassification News Update

Judicial and regulatory developments in the months of September and October 2015 vividly highlight the fact that many companies in the U.S., both large and small, continue to fail to structure, document, and implement their...more

11/13/2015 - Class Action Independent Contractors Misclassification Popular Wage and Hour

Amazon.com Hit With Independent Contractor Misclassification Class Action Lawsuit By Delivery Drivers

Amazon is the latest tech company to be sued in a proposed class action by drivers delivering its products – in this case, goods to be delivered within two hours of being ordered through Amazon’s “Prime Now” app. The drivers...more

10/28/2015 - Amazon Marketplace Class Action Delivery Drivers Employee Benefits Independent Contractors Internet Retailers Minimum Wage Misclassification Out-of-Pocket Expenses Popular Rest and Meal Break Sharing Economy Uber Unpaid Overtime Wage and Hour

August 2015 Independent Contractor Compliance and Misclassification News Update

August 2015 was not a vacation month for independent contractor cases. No less than seven major litigation events transpired this past month, highlighted by more of the same as well as some new developments. Several companies...more

9/8/2015 - Browning-Ferris Industries of California Inc. Class Action Construction Industry DOL FedEx Google Independent Contractors Joint Employers Lowe's Misclassification NLRB Restaurant Industry Sharing Economy Staffing Agencies Taxi Cabs Temporary Employees Uber Wage and Hour White Paper

Why Did Uber Lose In Court Today? And How It Can Still Avoid Future Misclassification Liability

Today was not a good day for Uber. It suffered its second setback from the federal district court judge hearing the independent contractor misclassification class action case brought by Uber drivers against the giant...more

9/2/2015 - Class Action Class Certification Corporate Counsel FedEx Independent Contractors Misclassification New York Times Popular Sharing Economy Tips Uber Wage and Hour Young Lawyers

Impact of NLRB’s Joint Employer Decision on Independent Contractors: State-of-the-Art IC Agreements Can Protect from...

Few independent contractor agreements we have reviewed, even those of Fortune 500 companies, are relatively free from clauses that undermine the IC relationship because such agreements typically contain clauses that retain...more

8/31/2015 - 1099s Browning-Ferris Industries of California Inc. Class Action FedEx Fortune 500 Independent Contractors Joint Employers Misclassification NLRA NLRB Uber Unions W-2

Even if Uber Loses Class Certification Motion Today, All Is Not Lost for Ride-Sharing Tech Giant

August 6, 2015 may be a day that Uber drivers in California win preliminary approval of their motion for class certification in their independent contractor misclassification lawsuit. A hearing is scheduled this afternoon in...more

8/6/2015 - 1099s Class Action Class Certification FedEx Hiring & Firing Independent Contractors Labor Law Violations Misclassification Sharing Economy Startups Taxi Cabs Uber W-2 Wage and Hour

Senate Democrats Re-Introduce the Payroll Fraud Prevention Act of 2015 Soon After Hillary Clinton Seeks to Insert IC...

Shortly after Presidential candidate Hillary Clinton placed independent contractor misclassification in the national spotlight in mid-July 2015 when she prominently commented in a campaign speech upon the expanding use of ICs...more

8/3/2015 - FLSA Fraud Prevention Hillary Clinton Independent Contractors Misclassification Non-Employees Popular Wage and Hour

July 2015 Independent Contractor Compliance and Misclassification News Update

This July was another month where independent contractor compliance and misclassification was a topic that made front page news. Hillary Clinton placed independent contractor misclassification in the national spotlight when...more

8/3/2015 - Attorney's Fees Basketball Cheerleaders Corporate Counsel DirectTV DOL Equal Access to Justice Act FedEx FEHA FLSA Football Independent Contractors Labor Code Lyft Misclassification Ports Sharing Economy Sports Teamsters Trucking Industry Wage and Hour

Homejoy’s Shutdown, Due to Misclassification Lawsuits, Likely to Propel Tech Start-Ups to Enhance Their Independent Contractor...

Earlier Friday, it was reported by Carmel DeAmicis of re/code that Homejoy, the home cleaning start-up that uses independent contractors as their home cleaners, was closing down its operations due to four misclassification...more

7/20/2015 - 1099s Affordable Care Act ERISA FedEx Independent Contractors IRS Misclassification Popular Startups VCSP W-2 Wage and Hour

Labor Department's New Guidance on Independent Contractor Misclassification Is Nothing New Legally, But Will Likely Reinvigorate...

The main difference between the new Interpretation and the Labor Department’s prior enforcement policy is a greater emphasis on the “economic dependence” of the workers on the business that has engaged their...more

7/16/2015 - Corporate Counsel DOL FLSA Independent Contractors Internal Revenue Code (IRC) Minimum Wage Misclassification Unpaid Overtime Wage and Hour

Seventh Circuit Adopts Kansas Supreme Court Decision that FedEx Ground Misclassified Its Drivers as Independent Contractors as a...

Wednesday, as anticipated, the U.S. Court of Appeals for the Seventh Circuit adopted the decision of the Kansas Supreme Court that FedEx Ground drivers, as a matter of law, were employees and not independent contractors under...more

7/10/2015 - Corporate Counsel FedEx Independent Contractors Internet Service Providers (ISPs) Misclassification Popular Wage and Hour Young Lawyers

June 2015 Independent Contractor Compliance and Misclassification News Update

The month of June 2015 created more newspaper stories and blog posts on the subject of independent contractor misclassification than any other. Why? Uber lost an IC misclassification case and FedEx Ground agreed to pay $228...more

7/6/2015 - Adult Entertainment Class Action Corporate Counsel DOL Drivers Employee Definition Employer Liability Issues Entertainment Industry Fashion Industry FedEx Hospitality Industry Independent Contractors Misclassification Popular Settlement Sports Uber Wage and Hour

Uber Suffers Another Independent Contractor Misclassification Setback in California

Uber has not fared well in court battles recently. After losing an unemployment case last month in Florida, it has now just lost an independent contractor misclassification wage case in California. This loss in California...more

6/18/2015 - Compliance Employment Contract FedEx Hiring & Firing Independent Contractors Labor Code Labor Commissioners Misclassification Popular Summary Judgment Uber Unemployment Benefits Wage and Hour

$228 Million: The Cost of Independent Contractor Misclassification for FedEx Ground in California

Yesterday, June 12, FedEx announced in papers filed with the SEC that its Ground Division “has reached an agreement in principle with [drivers] in the independent contractor litigation that is pending in …California [federal...more

6/15/2015 - 1099s Class Action Compliance Corporate Counsel Employee Rights FedEx Independent Contractors IRS LLC Lyft Misclassification NLRB Popular SEC Settlement Offer Startups Uber Wage and Hour

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