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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 -

Phase One Of Grubhub Trial Ends; Waiting Game Begins

by Fisher Phillips on

The evidentiary phase of the Grubhub misclassification trial ended last week; now the gig economy world waits with baited breath for a final ruling. For those unfamiliar with the situation, this could be the first time the...more

Judge OK’s $8.75 Million Postmates Settlement

by Fisher Phillips on

A federal judge in California recently gave his blessing to an $8.75 million settlement in the ongoing litigation by delivery drivers against the food courier service, Postmates. In the class action suit, which was filed in...more

United States Department of Labor Moves Hint at Policy Changes, but Employers Await Clarity

by Vedder Price on

Presidential administration transitions almost always result in policy and enforcement initiative changes at the U.S. Department of Labor (DOL). This year appears to be no different, but it is not yet clear how some recent...more

A Look-In At The Halfway Point In The Critical GrubHub Trial

by Fisher Phillips on

As readers of this blog know, we are right in the midst of one of the most significant legal developments for the gig economy. For the first time, a judge is being asked to definitely decide at trial whether a typical...more

Ohio Federal Court Finds Insurance Agents are Employees and Not Independent Contractors

by Locke Lord LLP on

In an action filed by insurance agents working under independent contractor agreements with an insurer, the U.S. District Court for the Northern District of Ohio found the agents were employees who could pursue pension and...more

North Carolina Doubles Down on Enforcing Employee Misclassification

On August 11, 2017, Governor Roy Cooper signed into law the Employee Fair Classification Act. While the Act does not change the definition of what constitutes an “employee” under existing North Carolina law, the Act does...more

NLRB Fires Shot At Handy, Taking Aim At Gig Economy In General

by Fisher Phillips on

Josh Eidelson from Bloomberg reported that the National Labor Relations Board (NLRB) issued a complaint against gig economy mainstay Handy earlier this week, alleging that the on-demand workers who provide home cleaning...more

WPI State of the States: Labor Day Edition

by Littler on

The holiday weekend marked the end of summer fun, but state legislatures across the country remained hard at work in August. Roughly nine statehouses are in active session. In other jurisdictions, such as Florida and Ohio,...more

North Carolina’s New Employee Misclassification Law: What Will Be The Practical Effect?

by Jackson Lewis P.C. on

Effective December 31, 2017, the North Carolina Employee Fair Classification Act, signed into law on August 11th, creates the Employee Classification Section of the North Carolina Industrial Commission. This new Section will...more

North Carolina Cracks Down on Employee Misclassification

by Nexsen Pruet, PLLC on

Most employers are familiar with legal issues surrounding the classification of workers as employees or independent contractors. Until recently, these discussions centered primarily around the decision on how a worker should...more

New Case Shows That “Uber-ization” of Workforce Could Lead to Misclassification Challenges

by Fisher Phillips on

Earlier this week, I wrote an article about a recent NLRB decision where the Board found a group of workers who provide video content services for the display board at Minnesota Timberwolves basketball games to be incorrectly...more

Are Your Independent Contractors Really Employees?

by Fox Rothschild LLP on

If business owners are not concerned about the make-up of their workforce, they should be. In recent years, the number of lawsuits concerning misclassification of employees has risen exponentially. This is because companies...more

Labor Board Dunks On Employer’s Contractor Classification Attempt - NBA’s Timberwolves Foul Out In Front Of NLRB

by Fisher Phillips on

In a ruling sure to leave businesses and gig economy companies crying foul, the National Labor Relations Board concluded that workers producing electronic video display content for the NBA’s Minnesota Timberwolves were...more

NLRB Finds Sports Team’s Electronic-Content Workers As Employees Eligible To Unionize

by Jackson Lewis P.C. on

The National Labor Relations Board has found the individuals who produce electronic content for viewing during professional basketball games are employees, rather than independent contractors. Minnesota Timberwolves...more

New South Carolina Decision Impacts How Employers Classify Workers

This blog has previously covered the potential pitfalls of classifying workers as independent contractors. While classifying a worker as a “1099” offers many potential benefits on the business side, it can expose the company...more

DOL Withdraws Guidance Letters Leaving Employers to Pick up the Pieces

On June 7, 2017, the U.S. Secretary of Labor Alexander Acosta announced the withdrawal of the U.S. Department of Labor’s (“DOL”) guidance on independent contractors and joint employment issued during the Obama administration,...more

North Carolina Governor Signs Law Creating Division to Investigate and Prosecute Employee Misclassification Claims

In 2015, a Raleigh newspaper ran a series of investigative articles focused on construction industry members that classified a large portion of their workers as independent contractors instead of employees. The articles...more

NC “Employee Classification” Law Warrants Caution But Doesn’t Change Substantive Law

On August 11, Gov. Roy Cooper signed into law the North Carolina Employee Fair Classification Act. The portion of the legislation that deals with worker classifications will take effect December 31....more

Could A Proposed Federal Law Solve The Misclassification Riddle?

by Fisher Phillips on

For years, businesses have struggled with properly identifying workers as either independent contractors or W-2 employees. The hundreds of thousands of jobs created by the gig economy have complicated matters even further....more

Is My Noncompete With an Independent Contractor Enforceable?

by Fisher Phillips on

The Eight Circuit recently addressed this question in Ag Spectrum Co. v. Elder, Case No. 16-3113 (8th Cir. August 2, 2017). In that case, Ag Spectrum contracted with Vaughn Elder to work as an independent contractor. Elder...more

IT Companies and the Uber-ization of the Workforce

by Fisher Phillips on

With the rise of the gig economy, IT companies are taking the approach many employers in the gig economy have taken in structuring their workforce. In an industry where full-time and part-time employees cohabit in the same...more

Will Dealerships And Third-Party Detailers Continue To Face Increased DOL Scrutiny?

by Fisher Phillips on

During the Obama administration, the U.S. Department of Labor (DOL) placed special emphasis on scrutinizing the alleged misclassification of independent contractors and joint employer relationships. Dealerships were notably...more

In what direction will Uber drive SA labour laws?

by Hogan Lovells on

The recent CCMA ruling in favour of Uber drivers now heads to the Labour Court. This is an extremely important case as South African labour laws for the first time now come "Head-to-Bot" with the fourth industrial revolution....more

Worker Classification Update

by Clark Hill PLC on

On July 20, 2017, the Internal Revenue Service ("IRS") issued a reminder for small businesses on the importance of correctly classifying workers as employees or independent contractors. Employers failing to do this correctly...more

Certification Of Alleged Misclassified Bakery Distributors Denied Due To Predominance Of Individualized Issues

by Jackson Lewis P.C. on

Class certification would have been granted in Soares v. Flowers Foods, Inc., 3:15-cv-04918 (N.D. Cal., June 28, 2017), but for the allegedly misclassified independent contractors’ decision to deliver, or not deliver, the...more

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