Independent Contractors Misclassification

Independent contractors are individuals or entities that perform work for other individuals or entities, but are not employees of those individuals or entities. Whether a worker is an employee or an independent... more +
Independent contractors are individuals or entities that perform work for other individuals or entities, but are not employees of those individuals or entities. Whether a worker is an employee or an independent contractor is not always an easy determination. However, due to differences in tax and liability treatment, misclassifying an employee as an independent contractor can have serious consequences. Autonomy is the defining feature of independent contractor arrangements. Independent contractors control the manner and method of how work is performed while payers control the desired result. Control over schedule and number of hours worked, ownership of equipment or tools, permanency of relationship, and acceptance of jobs from multiple entities are all possible factors in determining whether a worker is an employee or independent contractor.   less -
News & Analysis as of

Failing to Properly Classify Workers as Employees vs Independent Contractors: Pay Me Now or Pay Me Later - Common Legal Mistakes...

Pay Me Now or Pay Me Later is a series of short tips on common legal mistakes small business owners make. Tip # 5 Properly Classify Workers as Employees versus Independent Contractors...more

New York’s Highest Court Issues IC-Friendly Ruling, Holding That Certain Yoga Teachers Are Valid Independent Contractors

Earlier today, October 25, 2016, the New York Court of Appeals issued an important decision on the issue of independent contractor status. The Court held that a group of yoga instructors working at a New York City yoga...more

New York’s Highest Court: No “Stretch” in Yogi’s Independent Contractor Classification

Seyfarth Synopsis: The New York Court of Appeals recently rejected the narrow view of the Unemployment Insurance Appeal Board and found that substantial evidence did not support a finding that certain yoga instructors were...more

Self-Inflicted IC Misclassification Wounds: How Did FedEx Bludgeon Itself Into Pay Nearing $500 Million to Settle Claims That It...

FedEx’s costs due to IC misclassification are approaching $500 million over the past year as a result of its inability to draft in a valid manner its IC agreement and internal policies governing Ground Division drivers. Last...more

Gig Economy Giant’s Uber-Creative Management Style for Maintaining Independent Contractor Workers

Uber’s inventive management style continues to be a topic of conversation in the gig economy world. In the wake of the $100M Uber class action litigation settlement being rejected (primarily due to monetary terms), a new case...more

Third Circuit affirms class certification in franchisee-as-employee class action

In a recent sharply divided 2-1 decision, the Third Circuit Court of Appeals affirmed the grant of class certification against commercial cleaning franchisor Jani-King in a lawsuit alleging that Jani-King’s franchisees were...more

Uber and IC Misclassification in New York: The Other Shoe May Be Dropping

The New York Times today reported that the New York State Department of Labor has found two Uber drivers as eligible for unemployment benefits after having rejected the company’s argument that the drivers are independent...more

Retail and Consumer Products Law Roundup - October 2016

Supreme Court to Review Credit Card Surcharge Statutes - Why it matters: In an effort to resolve a conflict between Circuits, the Supreme Court has agreed to hear arguments in a challenge to New York’s credit card...more

Employment Law Navigator – Week in Review: October 2016 #2

Last week, The EEOC announced a public meeting on the use of big data in employment practices. This gathering is a continuation of the agency’s interest in the relationship between data analytics and discrimination. EEOC...more

Employment Law - October 2016

Employers Can’t Arbitrate Any Issues Related to PAGA Claim - Why it matters - The California Supreme Court’s decision in Iskanian v. CLS Transportation Los Angeles forecloses an employer’s ability to require a...more

September 2016 Independent Contractor Misclassification and Compliance News Update

The past month’s judicial and administrative activity in the area of IC misclassification reflects the wide range of industries facing these types of claims: communications; cleaning services; transportation and delivery...more

NLRB Releases Advice Memorandum Affirming Misclassification Constitutes Unfair Labor Practice

At the end August, the National Labor Relations Board released an advice memorandum, originally drafted in December 2015, concluding that a group of drivers who worked for a drayage company called Pacific 9 Transportation...more

Independent Contractors or Employees: Why It Is so Important to Use the Proper Classification for the People that Work for You

Over the past few years, there has been a concerted effort on the part of the US Department of Labor, as well as various state attorneys general, to target businesses that misclassify workers as independent contractors when...more

USDOL Recruits Whistleblowers for Misclassification Claims: Will Gig Workers Even Notice?

The United States Department of Labor (USDOL) recently revised its wage and hour poster to include information on the misclassification of workers as independent contractors. As noted in our previous legal alert on this...more

Uber Victory in Ninth Circuit Regarding Dispute Over Enforceability of Arbitration

The United States Court of Appeals for the Ninth Circuit (the “Ninth Circuit”) recently ruled that the majority of Uber’s contract drivers must resolve their disputes through individual arbitration and cannot pursue their...more

InterConnect Flash No. 56 - IC Classification Claims Preempted by Federal Truth-In-Leasing Regulations

We first reported on the Remington v. J.B. Hunt, Inc. case last year in Flash No. 46. Based on the First Circuit Court of Appeals’ decision in Massachusetts Delivery Ass’n v. Coakley, 769 F.3d 11 (1st Cir. 2014) (“MDA”),...more

Open the Floodgates: NLRB Announces Misclassification of Independent Contractors Can, In Itself, Violate Section 8(a)(1)

On August 26, 2016, the National Labor Relations Board's Division of Advice publicly released an advice memorandum from December of 2015 in which it found a Section 8(a)(1) violation for an employer's misclassification of...more

Lessons Unlearned: Franchise and Independent Contractor Agreements Can Be Kiss of Death

The Third Circuit’s decision is a pointed reminder to franchisors, as well as businesses that use independent contractors, that the form of their agreements can either serve their legal interests or harm them in employee...more

Canada: Time for Submissions Soon Expiring in Ontario under Changing Workplace Review

As previously reported, the Special Advisors to the Government of Ontario, Canada released their interim report on July 27, 2016 on ways in which the Ontario Labour Relations Act (“LRA”) and Ontario Employment Standards Act,...more

Oklahoma Partners With U.S. DOL to Investigate Worker Misclassification

On September 13, 2016, Oklahoma became the 35th state to enter into a partnership with the U.S. Department of Labor (U.S. DOL) to share information and conduct joint investigations regarding independent contractor...more

Misclassification Of Workers Just Got Riskier For Oklahoma Employers

For years, we have been warning employers of the dangers of misclassifying workers as independent contractors when they are actually employees. Information-sharing among agencies on the rise - The federal government...more

US DOL and PA DOL Partner to Prevent Employee Misclassification

On August 4, 2016, the U.S. Department of Labor (“U.S. DOL”) and the Pennsylvania Department of Labor and Industry (“PA DOL”) signed a memorandum of understanding (MOU) to coordinate efforts, by sharing information and...more

Uber Enforces Arbitration Due To Delegation Clause And Opt Out

The 9th Circuit’s decision to enforce the arbitration agreement in Uber’s agreements with drivers made lots of news last week.  And although it includes no new principles of law, it does emphasize some principles that come up...more

NLRB Issues Advice Memorandum Claiming That Misclassification of Employees as Independent Contractors Violates Section 8(a)(1) of...

Seyfarth Synopsis: In an advice memorandum issued on December 18, 2015, but just released to the public at the end of August, 2016, an Associate General Counsel of the National Labor Relations Board opined that an employer’s...more

Labor and Employment Tips

Here are 10 employment tips to prevent your start-up from losing ground before it gets started: - Make sure you understand the differences between employees and independent contractors and follow all legal requirements...more

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