News & Analysis as of

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 -

Law Firm Misclassifies Secretary As Exempt And Now Must Pay Overtime

by Fox Rothschild LLP on

You know, law firms are not immune from FLSA issues merely because they are law firms and may be allegedly endowed with some superior knowledge of laws. A recent case illustrates this maxim. The name partner of a Los Angeles...more

Don’t Judge a Conditional Certification Motion by Its Cover

by Seyfarth Shaw LLP on

Seyfarth Synopsis: A New York federal court denied a motion for conditional certification of a nationwide collective action against Barnes & Noble. The ruling highlights that, even though the burden for “first stage”...more

Interesting Tactic in FLSA Collective Action—Pre-Litigation Settlement Talks

by Fox Rothschild LLP on

I have blogged so many times about Assistant Manager class actions. I never seem to get tired of it because there is a never-ending “supply” of them. Guess what. Another one. A group of employees working for AC Moore, an...more

Flagged Down: Second Circuit Finds NYC “Black Car” Drivers Are Independent Contractors

The Second Circuit has affirmed the dismissal of a class action of New York City “black car” drivers who alleged they were misclassified as independent contractors by their dispatchers. In reaching its ruling, the Court found...more

The War on Employee Misclassification: Will Trump Call a Cease Fire?

by LeClairRyan on

During its two terms, the Obama Administration declared war on misclassification of employees as independent contractors. The U.S. Department of Labor (DOL) issued additional guidance on the proper classification of workers....more

Federal Court Provides Roadmap For Misclassification Success – Sort Of

by Fisher Phillips on

Ruling In Favor Of Independent Contractor Status Provides Boost To Gig Economy - A federal appeals court in New York handed a massive victory to a car service enterprise yesterday, ruling that a group of workers...more

Is This Your New Roadmap To Misclassification Success? Maybe.

by Fisher Phillips on

This is a big deal The 2nd Circuit Court of Appeals came down in favor of a sharing economy business in a misclassification case yesterday, ruling that a group of black-car drivers were independent contractors and not...more

Black Car Drivers in New York City Held Independent Contractors By Federal Court of Appeals

by Pepper Hamilton LLP on

While Uber has dominated the headlines when it comes to whether drivers on their on-demand, ride-sharing platforms are independent contractors or employees, similar battles are being waged elsewhere in the car service...more

Sheppard Mullin Secures Major Victory for Chipotle in Nationwide Misclassification Action By Demonstrating Variations Among...

The Court’s opinion in Scott v. Chipotle Mexican Grill demonstrates how employers can successfully combat class action claims that employees were misclassified as exempt. The successful defense of the class certification...more

March 2017 Independent Contractor Misclassification and Compliance News Update

by Pepper Hamilton LLP on

The past month included significant state and federal appellate court decisions, large settlements of IC misclassification class actions, class and collective action certifications, and two IC misclassification class actions...more

Is a Nursing Coordinator Exempt From Overtime? Ninth Circuit Biopsies Administrative Exemption

The Ninth Circuit Court of Appeals recently ruled that whether a nursing staffing coordinator met the administrative exemption from federal overtime requirements is a factual issue that must be decided at trial. Quintiliani...more

February 2017 Independent Contractor Misclassification and Compliance News Update

by Pepper Hamilton LLP on

Four of the eight court cases we report on below in our February 2017 monthly update of IC misclassification cases involve Uber, and each of those cases were victories for the ride-sharing, on-demand company. Although none of...more

Joint Employment: Are Your Subcontractors Leaving You at Risk?

by Ward and Smith, P.A. on

In a recent article, we discussed steps taken by the U.S. Department of Labor ("USDOL") to crackdown on the rampant misclassification of employees as independent contractors. The USDOL effectively created a default rule that...more

Third Circuit Affirms Rejection Of Class Arbitration Where Employment Agreement Was Silent On Whether Arbitration Could Proceed On...

by Carlton Fields on

Plaintiffs, former staffing managers of defendants’ international staffing agency, alleged that defendants misclassified them as overtime-exempt employees in violation of the Fair Labor Standards Act. Following earlier...more

3 Class Actions, 3 Motions to Compel Arbitration, 1 Class Action Survives

The Ninth, Sixth, and Third Circuits all recently issued decisions about whether putative class or collective actions could proceed despite the existence of arbitration clauses. In two of those decisions, the courts found...more

Is the USDOL Making it Easier for On-Demand Workers to Claim Misclassification?

by Fisher Phillips on

The on-demand economy has certainly changed the way people provide and receive services. It may also be changing the way the government focuses its enforcement priorities. The U.S. Department of Labor (USDOL) issued...more

January 2017 Independent Contractor Misclassification and Compliance News Update

by Pepper Hamilton LLP on

January was a busy month for independent contractor misclassification – and IC compliance. In addition to Lowe’s $2.85 million settlement with installers whom it classified as ICs, Lufthansa agreed to pay $1.1 million in...more

Court Refuses to Certify Class Due to Lack of Adequacy of Class Counsel

by BakerHostetler on

A recent case reflects that some courts will look not only to the presence or absence of conflicts or litigation misconduct but also to the plaintiffs’ counsel’s experience in other class action cases. In Goers v. L.A....more

2016/2017 Labor & Employment Observer

by Cozen O'Connor on

Activist NLRB Created More Problems For All Employers in 2016 - What Happens Under President Trump? During 2016, the National Labor Relations Board (NLRB or the Board) maintained its generally pro-union, anti-employer...more

What Damages Can an Employee Recover in a Lawsuit from an Arizona Employer?

by Jaburg Wilk on

If an employee or former employee sues, they may be entitled to many different types of damages which could amount to a substantial amount. However, that is not always the case. The different kinds of damages an employee can...more

Post No Bills? Employers Have To Post Plenty!

This year is ending with quite a few changes in various federal workplace posters. To ensure that employers, especially federal contractors, have kept up with the required changes, here is a summary: - Federal 6-in-1...more

November 2016 Independent Contractor Misclassification and Compliance News Update

by Pepper Hamilton LLP on

Our news update for last month highlights the fact that IC misclassification lawsuits are happening across the country and in virtually every industry, both in the on-demand economy and in more traditional business sectors....more

Employers Have Something to be Thankful For as Judge Halts December 1st Effective Date of DOL FLSA Final Rule: Here is What...

by Dickinson Wright on

In the last six months, nearly every business was sent into panic mode and forced to quickly adjust to the Department of Labor’s (DOL) Fair Labor Standards Act (FLSA) Final Rule that was set to take effect December 1,...more

Federal Minimum Salary Increases for Exempt Workers Take Effect December 1, 2016

by Fenwick & West LLP on

If you have not audited your exempt employee pay practices for compliance with the federal Department of Labor’s rules announced earlier this year, you have just under two weeks to do so. Starting December 1, 2016, the...more

Labor & Employment Hot Topics Impacting the Construction Industry

A number of employment-related developments are likely to impact the construction industry. This article is intended to briefly summarize some of these developments....more

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