Independent Contractors Fair Labor Standards Act

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

Executive Order May Block Contractors with Labor Violations from Receiving Federal Contracts

On July 31, 2014, President Obama signed the Fair Pay and Safe Workplaces Executive Order (“Executive Order”) that requires contractors to (1) disclose recent violations of various workplace laws before being awarded federal...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

Court Awards Fees And Costs Against USDOL

A Texas federal court has ordered the U.S. Labor Department to pay more than $560,000 in attorney's fees, paralegal fees, and travel expenses growing out of litigation under the federal Fair Labor Standards Act. USDOL...more

InterConnect FLASH! No. 39 - Recent Court Decisions Reflect the Rule of Reason: Totality of the Circumstances Regains Traction

Two recent court decisions from two different jurisdictions, issued several weeks apart, reflect a more balanced and reasonable approach for determining worker classification issues based on the totality of the facts and...more

Connecticut Congressman Sponsors “Payroll Fraud Prevention Act”

Readers of this blog will be aware that the misclassification of employees as independent contractors has been a major concern of state and federal authorities for several years. Employers don’t provide workers compensation...more

Employment Law Checkup 2014

Each year usually starts with a lot of resolutions and good intentions that fall by the wayside, mostly for lack of a plan. One resolution of all employers should be to update their policies and practices to comply with the...more

Strippers and the Fair Labor Standards Act: Lessons for All Employers

Late last month, in the Southern District of Florida, adult entertainers at several Rick’s Cabaret locations filed a lawsuit alleging that they were improperly categorized (and thus improperly compensated) as independent...more

Wage and Hour Compliance Priorities for 2014

It is easy for us to recommend that employers conduct regular and comprehensive wage and hour audits that examine all facets of the employer’s pay practices to ensure compliance with the myriad of wage and hour laws. After...more

"Right to Know" Initiative Apparently Expanded

The U.S. Labor Department has announced another proposal to conduct a survey relating to "worker classification issues" under the federal Fair Labor Standards Act. ...more

New Case Provides Lessons That May Help Companies Avoid Pitfalls When Structuring Independent Contractor Relationships

The district court's opinion denying cross-motions for summary judgment in Bobbitt v. Broadband Interactive, Inc., No. 8:11-cv-2855 (M.D. Fla. Oct. 21, 2013) illustrates how not to structure an independent contractor...more

Employment Classification Lessons Learned From Scantland v. Jeffry Knight Inc.

A recent Eleventh U.S. Circuit Court of Appeals decision issued a strong admonition to employers: the misclassification of workers as independent contractors rather than employees may have serious financial and operational...more

Are Your Independent Contractors Actually Employees?

Independent contractors often provide several benefits to employers, such as removing an employer’s duty to pay overtime and health insurance for such workers. In turn, the independent contractor status provides individuals...more

Hot Wage and Hour Issues for Home Healthcare Employers

In This Report: - I. Spotlight On Wage-And-Hour Risks For The Home Healthcare Industry - II. Potential Loss Of The Companionship Services Exemption - III. Other Common Types Of Claims - A. Misclassification...more

Crowdsourced Workers: Are They Employees or Independent Contractors?

What happens when modern innovations in the workforce (made possible by the advent of the internet) collide with traditional concepts of employment? You get lawsuits like Christopher Otey v. Crowdflower, Inc., filed late...more

Dog Days (of Winter) are Over: Audits for Worker Misclassification On Increase

Consistent readers of the blog will no doubt know of my weaving in pop culture into blog posts. So it was with some good fortune that as I began to write this post, the song “Dog Days are Over” popped up on my iPhone speakers...more

To Pay or Not To Pay: Payment of Wages under Federal Wage and Hour Law

“These violations reflect one of the problems we’ve found in the oil and gas extraction industry—employees are improperly classified as exempt from the FLSA and are not paid the proper wages in accordance with federal law.” -...more

Misclassification of Workers: An Attempt to Save Could Cost Your Business A Bundle

In recent months, many business owners have noticed that their classification of workers is being closely scrutinized by a variety of federal and state regulatory agencies. Whether a worker is classified as an “employee” as...more

How to Survive the Department of Labor’s Wage and Hour Enforcement

As most employers know, the federal wage/hour law under the Fair Labor Standards Act (“FLSA”) includes the requirement to pay “non-exempt” employees time and one half of their “regular rate” for work in excess of 40 hours in...more

Eleventh Circuit: Liquidated Damages For FLSA Retaliation Discretionary, Not Mandatory

The Eleventh Circuit joined the Sixth and Eighth Circuits in holding that liquidated damages awards for FLSA retaliation claims are discretionary, not mandatory. Moore v. Appliance Direct, Inc., No. 11-cv-15227 (11th Cir....more

Dept. of Labor Wage & Hour Enforcement to Focus on Shale Employers

The U.S. Department of Labor (“DOL”) Wage and Hour Division (“WHD”) announced in December of 2012 the recovery of $187,165 of wages for 69 employees as part of its multi-year ongoing enforcement initiative focused on vendors...more

DOL’s Renewed Focus on Worker Misclassification

The U.S. Department of Labor has published a Request for Comments regarding its Proposal to spend $1,852,029.00 to conduct a first of its kind survey of employers and employees about their experiences and knowledge of worker...more

DOL's Misclassification Initiative Continues

Iowa is the latest State to sign a Memorandum of Understanding and join forces with the U.S. Department of Labor to combat employee misclassification. Although Labor Secretary Solis has announced her resignation, it appears...more

Exempt or Non-Exempt? The Ten Most Common Employee Classification Pitfalls Faced by Nonprofits

In this presentation: - How to find and fix common misclassification errors - Common exemptions from the FLSA – Independent contractors – Commissioned salespersons – Seasonal employees – Computer...more

Labor: DOL initiatives to crackdown on employee misclassifications

Originally published in InsideCounsel.com - March 5, 2012. Penalties for misclassifying employees as independent contractors could be severe In one of the most noteworthy collaborations of 2011, the U.S....more

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