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

California Federal District Court Certifies Class of 160,000 Uber Drivers

In O’Connor v. Uber Technologies, Inc. (Filed 09/01/2015, No. C-13-3826 EMC), the United States District Court, Northern District of California, certified a class of approximately 160,000 current and former drivers of Uber in...more

The Employee Fair Classification Act

In August 2015, the North Carolina House of Representatives sent a bill to the Senate that would create an oversight board for employee classification. See H.B. 482. The Employee Fair Classification Act could significantly...more

Be Warned: Federal Guidance on Misclassification States that “Most Workers Are Employees,” Not Independent Contractors

On July 15, 2015, the United States Department of Labor (“DOL”) released official guidance addressing the misclassification of employees as independent contractors. The guidance, Administrator’s Interpretation No. 2015-1...more

Northern District of California Certifies Part of a Class Against Uber

Much is being reported in the media about the decision of the United States District Court for the Northern District of California certifying a class of drivers for the Uber ride service who contended that they were...more

Workers’ Compensation Update: Commonwealth Court Clarifies “Written Contract” Requirement for Independent Contractor...

In 2010, the Pennsylvania Legislature enacted the Construction Workplace Misclassification Act (CWMA), which, in part, attempted to clarify who is and is not an independent contractor (in the construction industry) for the...more

Are Your Contractors Actually Employees? DOL Says Probably Yes

Last month, the U.S. Department of Labor (USDOL) issued an Administrator's Interpretation aimed at addressing what it characterizes as the “problematic trend” of employers misclassifying workers as independent contractors...more

You Have Class!, says Judge to Uber Plaintiffs

A handful of Uber drivers sued the ride-share giant in 2013 alleging that they were functioning as company employees but improperly treated and underpaid as independent contractors. They claimed that Uber had been...more

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

Red Flags for Homebuilders Related to DOL's Latest Guidance on Independent Contractors

On July 15, 2015, the U.S. Department of Labor (DOL) issued an “Administrator’s Interpretation” (AI 2015-1) providing guidance on whether workers are employees or independent contractors under the Fair Labor Standards Act...more

California Federal Court Certifies Class of Uber Drivers Seeking Unpaid Tips

On Tuesday, September 1, 2015, Judge Edward M. Chen certified a class of Uber drivers seeking to collect tips they claim they were cheated out of by the ridesharing company. These drivers also allege that they have been...more

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

Decision Reflects Danger in Misclassifying Employees as Independent Contractors

A recent decision by a federal district court in Maryland highlights the dangers in classifying individuals as independent contractors instead of employees. (Randolph v. PowerComm Construction, Inc.) In this case, the...more

DOL Issues Guidance Concluding that Most Workers are Employees Under the FLSA

The Department of Labor (DOL) recently issued new guidance addressing independent contractor classification under the Fair Labor Standards Act (FLSA). In Administrator’s Interpretation No. 2015-1, the DOL interprets the...more

FedEx Workers Ruled Employees, Not Independent Contractors – and the IRS Weighs In

Developments continue to come almost daily about misclassification of employees as independent contractors. Wage and hour cases, tax rulings, and discrimination charges all are part of the mix....more

Department of Labor Makes Its Move

With just more than a year left in this administration, the U.S. Department of Labor (“DOL” or “Department”) has rolled out two major initiatives that promise to keep employers busy ensuring they are in compliance. First, in...more

The Real Battle over Independent Contractors and the ABC Test In Connecticut

You’ve no doubt heard lots about how the U.S. Department of Labor is cracking down on independent contractors. I’ve recapped it before and my former colleague, Jonathan Orleans, has a new post regarding Uber & electricians....more

Australia – Examination of the Test to Determine Worker Status: Independent Contractor or Employee?

The Full Court of the Federal Court of Australia recently considered whether an agency contractor was an employee or an independent contractor in the case of Tattsbet Limited v. Morrow [2015] FCAFC 62. Overturning the lower...more

Three Key Employment Updates

We have summarised three of the most notable employment related updates for you to mull over while enjoying the summer sun. European case opens the door for easier indirect discrimination claims to be brought by...more

SuperVision Today - August 2015

Notes from the Chair and Executive Editor - Welcome to the third quarter edition of SuperVision Today, the quarterly e-newsletter published by Spilman's Labor & Employment Group... ...In this edition of SuperVision...more

The Electrician Is An Independent Contractor; The Uber Driver Isn’t

When I talk to businesspeople about the legal differences between employees and independent contractors, I often offer the electrician who comes to the office to fix a wiring problem as the paradigmatic independent...more

Cash Payments to Workers; Convenience or Crime?

A common technique used to pay immigrants who are ineligible to lawfully work and to pay lawful workers "offbook" in order to reduce reported payroll for workers compensation and other purposes is to pay workers wholly or...more

Construction Industry Listed as a Top Priority for Misclassification Audits

Earlier this year, the U.S. Department of Labor (DOL) announced its 2015 Misclassification Initiative aimed at combatting misclassification of employees as independent contractors. At the top of its target list? Employers in...more

Surprise! That Independent Contractor is an Employee!

The Department of Labor (“DOL”) has given employers some bitter pills to swallow lately, especially in light of the proposed rule concerning new restrictions on the white collar overtime exemption. With a new set of guidance...more

FLSA: Changes Continue to Affect Employers

This past year has brought major changes to the laws affecting wage and hour issues. The Department of Labor has been particularly active this year putting out its first Administrator’s Interpretation regarding independent...more

DOL Memo Provides Script for FLSA Collective Actions Alleging Independent Contractor Misclassification

The all-time best The Far Side cartoon (based on an unscientific survey, sample size of me) is the one with two deer standing in the forest, one with a red circular target imprinted on its chest. The other deer says, “Bummer...more

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