Fair Labor Standards Act Misclassification

The Fair Labor Standards Act is a United States federal statute enacted in 1938 to promote fair labor conditions and protect workers from abusive treatment. The primary features of the FLSA address excessive... more +
The Fair Labor Standards Act is a United States federal statute enacted in 1938 to promote fair labor conditions and protect workers from abusive treatment. The primary features of the FLSA address excessive working hours, child labor, unpaid overtime and unsafe working conditions.  less -
News & Analysis as of

Cook County's New Wage-Theft Ordinance

Cook County recently increased the stakes on wage and hour compliance for employers that transact business with or receive tax incentives from the County. After May 1, 2015, Cook County may refuse to allow businesses to...more

The 2016 Federal Budget: Targeting Independent Contractor Misclassification as Part of the “Fissured Workplace”

The President released his Fiscal Year 2016 Budget today, February 2, 2015. In furtherance of the President’s budget request, the Labor Department’s Wage and Hour Division provided a 32-page budget justification to Congress...more

NJ Supreme Court Advises Courts to Follow NJDOL Test for Determining Employee vs. Independent Contractor Status for Wage Disputes

In Hargrove v. Sleepy’s LLC, the New Jersey Supreme Court recently held that the legal test for determining employee status under New Jersey unemployment compensation laws should also be used to determine employee status in...more

N.J. Wage and Hour Test: Contractor, Employee Distinction No Longer Relevant

In Hargrove v. Sleepy’s, the New Jersey Supreme Court determined, for the purposes of New Jersey’s wage laws (and overtime), that the so-called “ABC test” (derived from New Jersey’s Employment Compensation Act) would govern...more

Don’t Sleep on this New Jersey Employers: State Supreme Court Adopts More Stringent Test to Claim Independent Contractor Status

Recently, in Hargrove v. Sleepy’s, LLC, the New Jersey Court issued a unanimous decision raising the bar for New Jersey employers seeking to classify individuals as independent contractors under New Jersey’s Wage Payment Law...more

New Jersey Clarifies Independent Contractor Classification Test

The New Jersey Supreme Court’s decision defines a test that applies to employment classification disputes under the state’s Wage Payment Law and Wage and Hour Law....more

Latest Scoop From New Jersey on Independent Contractor Misclassification May Cause Employers Brain Freeze

An ice cream parlor in Dania Beach, Florida, features The Original Kitchen Sink Sundae, which contains up to 30 scoops, plus chocolate syrup, marshmallows, nuts, whipped cream, and a variety of berries. Customers can choose...more

Wondering what the Department of Labor will be doing this year? Here's what the agency says:

?According to the U.S. Department of Labor (DOL), it plans to increase its emphasis on audits and prosecutions of minimum wage and overtime violations, to increase its scrutiny of independent contractor classifications, and...more

December 2014 Independent Contractor Compliance and Misclassification Update

SUPPLIER OF INSTALLATION SERVICES FOR LARGE SATELLITE TV COMPANY CANNOT DISMISS IC MISCLASSIFICATION CLAIM BY INSTALLER. A federal district court in Mississippi last month denied cross-motions for summary judgment in an FLSA...more

Executive Labor Summary - November/December 2014

NEWS & ANALYSIS - NLRB changes longstanding rule for deferral to arbitration awards - The National Labor Relations Board has had a busy December with four major new developments. We have already reported on two of the...more

$4.5 million wage settlement for Pa. and WVa. workers in oil and natural gas industry

On Tuesday, December 9, 2014, the U.S. Department of Labor (DOL) announced that it has reached agreement with numerous employers in the oil and natural gas industry in Pennsylvania and West Virginia to provide 5,310 workers...more

Aggressive FLSA Enforcement May Now Mean Jail Time

The recent arrest of a New York restaurant owner for failing to pay her employees minimum wage and overtime pay highlights the aggressive efforts currently used to enforce employment laws like the Fair Labor Standards Act...more

Shake It Off: Employer Misclassification of Exotic Dancers under the Fair Labor Standards Act

Recently, there’s been a wave of Fair Labor Standards Act (“FLSA”) rulings adverse to employers in the adult entertainment industry. Early this year, a Southern District of New York judge approved an $8 million settlement for...more

November 2014 Independent Contractor Compliance and Misclassification Update

This month’s headline developments are two independent contractor misclassification class action lawsuits: one was filed in New York against a Silicon Valley giant, Google Inc., and the second was filed in California against...more

Employer Prevails on Misclassification Claim Where Employee Fails to Prove Hours Worked

Greg Holaway worked as a Field Service Engineer for Stratasys, Inc. He was categorized as exempt from the provisions of the Fair Labor Standards Act (FLSA) requiring the payment of overtime. Even though his title was...more

Gentlemen’s Club Cannot Strip Dancers of Employee Status

We mentioned early last year that the U.S. Department of Labor intended to start cracking down on the (mis)classification of workers as independent contractors. All is not lost however, as we also recently discussed a New...more

“Black Car” Drivers Found to be Independent Contractors

Recently, courts in highly-publicized independent contractor misclassification cases in the transportation sector have issued determinations finding the workers to be employees. However, a recent decision from the Southern...more

Recent Case Reminds Companies That, Though Much Embattled, Independent Contractor Classifications Can Be Valid

The dividing line between employees and independent contractors has been a hot topic in employment law for several years. In addition to the interest the federal government has taken in possible misclassification of...more

Claims Handlers: It’s Time to Adjust Our Claims!

Many insurers have a longstanding practice of paying claims adjusters a set weekly salary, regardless of the number of hours they actually work. The practice has support in federal labor regulations; the regulations...more

Federal Court Finds No Willful Violation for Misclassification of Mortgage Loan Officers

A federal court in Oklahoma delivered another blow to claims by mortgage loan officers that they are entitled to overtime under the Fair Labor Standards Act (FLSA). In Chapman v. BOK Financial Corporation, the court...more

Learning From LinkedIn: More Big Name Employment Law Violations Showcase Need For Wage and Hour Compliance Training

I confess that up until the huge LinkedIn case last month, I had no idea what wage and hour training even is, or why anyone needed to take it. After all, it’s pretty simple, right? Pay nonexempt workers their regular wage for...more

Third Circuit: Availability of Classwide Arbitration is an Issue for the Courts – Not Arbitrators – Unless the Parties Agreed...

Wednesday, the Third Circuit held that the determination of whether an agreement allows classwide arbitration is a question of arbitrability for the courts “unless the parties unmistakably provide otherwise.” Opalinski v....more

Store to Pay Up to $6.5 Million for Misclassifying Workers

A national home-improvement store recently agreed to pay thousands of California workers as much as $6.5 million for improperly labeling them independent contractors (IC) instead of employees....more

Arizona District Court Rejects Joint Employer Arguments in Independent Contractor Case Alleging Misclassification of Truck Drivers

A month ago we discussed the Ninth Circuit’s decision in Ruiz v. Affinity Logistics Corp., Case No. 12-56589 (9th Cir. June 16, 2014), in which the employer treated its delivery drivers as employees in everything but name,...more

Department of Labor to Revise Federal Regulations Interpreting the Right to Receive Overtime Pay under the Fair Labor Standards...

In a March 2014 Memorandum, President Obama directed the Department of Labor to “modernize and streamline” the regulations that dictate when an employer may lawfully designate an employee as exempt from overtime pay under the...more

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