Richard J. Reibstein

Richard J. Reibstein

Pepper Hamilton LLP

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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

New Independent Contractor Misclassification Study Is Belied By Government Report and Disregards the Legitimate Use of Independent...

The Economic Policy Institute, a respected nonprofit, nonpartisan think tank, has just released a working paper authored by a respected professor who co-authored a number of early academic studies detailing independent...more

6/12/2015 - Compliance FedEx FICA Taxes Full-Time Employees GAO Independent Contractors Minimum Wage Misclassification Unemployment Benefits Unpaid Overtime Wage and Hour

May 2015 Independent Contractor Compliance and Misclassification News Update

May 2015 was one of the busiest months for independent contractor (IC) misclassification cases in the courts and administrative agencies – no less than a dozen cases including such well-known companies as BMW, the NFL and...more

6/4/2015 - BMW Drivers Employee Definition FedEx Franchises Hospitality Industry Hotels Independent Contractors Janitorial Services Legislative Agendas Misclassification Regulatory Agenda Security Guards Sharing Economy Sleepy's Uber

Independent Contractor Tax Fairness and Simplification Act of 2015 Seeks to Eliminate “Safe Harbor” for Businesses

On May 20, 2015, Rep. Erik Paulsen (R. Minn.) introduced the Independent Contractor Tax Fairness and Simplification Act of 2015 (HR 2483), a bill that is identical to the bill of the same name that he introduced in 2012 (H.R....more

6/1/2015 - Employer Liability Issues Independent Contractors Misclassification Proposed Legislation Self-Employment Tax U.S. Treasury

New GAO Report on Contingent Workforce Shows 85% of Independent Contractors Are “Content with Their Employment Type”

A comprehensive government report on the contingent workforce made public two days ago revealed surprising data about independent contractors, finding that 85% of independent contractors “appeared content with their...more

5/26/2015 - 1099s Class Action Compliance Employee Benefits FedEx Fringe Benefits Full-Time Employees GAO Google Independent Contractors Lowe's Lyft Macy's Microsoft Misclassification Uber Wage and Hour

April 2015 Independent Contractor Compliance and Misclassification News Update

The leading news in the area of independent contractor compliance and misclassification in April 2015 is the settlement by Macy’s and its logistics company in New Jersey with the delivery drivers and their helpers used by...more

5/4/2015 - Compliance DOL FLSA Independent Contractors Macy's Minimum Wage Misclassification Ports Taxi Cabs Unemployment Benefits Unpaid Overtime Wage and Hour

The 2015 White Paper on Independent Contractor Misclassification: How Companies Can Minimize the Risks

In This Issue: - Introduction - Independent Contractor Misclassification: How It Has Arisen ..The Economic and Business Advantages of Using Independent Contractors ..Lax Enforcement and...more

4/28/2015 - Employer Liability Issues Independent Contractors Legislative Agendas Misclassification New Legislation Regulatory Agencies Regulatory Agenda Risk Assessment Risk Mitigation Wage and Hour White Paper

March 2015 Independent Contractor Compliance and Misclassification News Update

This past month’s headline developments involve three major developments in the area of independent contractor (IC) misclassification. The first case involves a large department store that agreed to pay most of the costs of...more

4/6/2015 - Adult Entertainment Class Action Delivery Drivers FLSA Franchises Independent Contractors Legislative Agendas Lyft Macy's Misclassification Retailers Trucking Industry Uber Wage and Hour

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