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Independent Contractors Unpaid Overtime

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 -
Cozen O'Connor

IL AG Settles Employee Misclassification and Wage Theft Claims With Construction Company

Cozen O'Connor on

Illinois AG Kwame Raoul settled with TBJ Drywall & Taping, Inc. (TBJ), resolving allegations that the company misclassified employees and failed to pay overtime wages in violation of state labor and employment laws....more

Ballard Spahr LLP

U.S. Department of Labor Issues Final Rule on Independent Contractor Status Under the FLSA

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On January 9, 2024, the US Department of Labor (DOL) issued a final rule that provides revised guidance on whether a worker is properly classified as an employee or independent contractor under the Fair Labor Standards Act...more

Jackson Lewis P.C.

Lessons for Construction Industry in Labor Board’s New Test to Classify Independent Contractors

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The National Labor Relations Board (NLRB) has made finding independent contractor status harder under the National Labor Relations Act. The Atlanta Opera, Inc., 372 NLRB No. 95 (2023). This decision may significantly affect...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

Federal District Court in Virginia Rejects Familiar Two-Step FLSA Collective Certification Approach

On April 14, 2023, the United States District Court for the Eastern District of Virginia (Ellis, J.) declined to conditionally certify a collective of USA Today sports website editors, ruling that the familiar two-step Fair...more

Foley & Lardner LLP

Energy Industry and Wage and Hour Compliance Issues

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On February 22, 2023, the United States Supreme Court issued a ruling, in Helix Energy Sols. Grp., Inc. v. Hewitt, No. 21-984, that despite earning in excess of $200,000 annually, an oilfield rig worker was improperly paid...more

Fisher Phillips

Florida Home Healthcare Worker Found to be Misclassified as Contractor – An Employer’s Survival Guide to Avoid Similar Fate

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In a stunningly broad ruling that should send shivers down the spine of every home healthcare agency that uses an independent contractor workforce, a Florida federal court ruled on April 12 that a home healthcare worker who...more

Fox Rothschild LLP

Costco Wins Independent Contractor Case: Is The Tide (Hopefully) Changing?

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There are so many independent contractor cases that go against the employers that when one goes the other way, it is a big deal. That is what has just happened with a Costco contractor who alleged the Company misclassified...more

Weintraub Tobin

Legislative Update: Intentional Wage Theft Could Result in Criminal Liability

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On September 27, 2021, Governor Newsom signed AB 1003 into law. AB 1003 adds a new type of grand theft to Penal Code section 487m for an employer’s intentional theft of wages in an amount greater than $950 (from any one...more

McCarter & English, LLP

Massachusetts’ Strictest-In-The-Nation Definition Of “Employee” May Encompass Franchise Operators

When a worker is classified as an employee, a panoply of local, state, and federal laws regulate many facets of the relationship between the worker and the person or entity the worker serves. When a worker is not an...more

Sherman & Howard L.L.C.

High Daily Pay Rates Can Satisfy FLSA’s Salary Exemption

The U.S. District Court for the District of Colorado decided that a sufficiently high day rate, although not a “salary” per se, was sufficient to satisfy the “salary basis” requirement for the FLSA’s white collar exemptions....more

Akin Gump Strauss Hauer & Feld LLP

Fifth Circuit Establishes New Standard For FLSA Collective Actions

Key Points - In Swales v. KLLM Transport Services, LLC, the U.S. Court of Appeals for the 5th Circuit established a new standard for determining whether, and to whom, court-authorized notice of a collective action lawsuit...more

Bradley Arant Boult Cummings LLP

Sixth Circuit Scrubs Attempted Snub of Arbitration of Grubhub Paystub Hubbub

There have been many examples of the tension between the “gig economy” and traditional labor laws. Most of the companies like Uber or Grubhub choose to classify their drivers as independent contractors instead of employees,...more

FordHarrison

Fifth Circuit Provides Positive Guidance on Independent Contractor Classification

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Applying the “economic realities” test, the Fifth Circuit (with jurisdiction over federal courts in Louisiana, Mississippi, and Texas) recently held that a consultant for an oil and gas company was not subject to FLSA...more

Epstein Becker & Green

Court to Consider Whether California Ride Share Drivers Who Make Airport Runs Are Exempt from the Federal Arbitration Act

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On November 26, 2019, San Francisco Superior Court Judge Richard B. Ulmer ruled that the Federal Arbitration Act (“FAA”) might not apply to Uber drivers who are engaged in interstate commerce while driving passengers to or...more

Bradley Arant Boult Cummings LLP

Not a Bad Place to Be: Fifth Circuit Addresses the “Highly Compensated” Exemption Under the FLSA

Sometimes employment laws can make the common person’s head spin. That certainly could be the case for a recent Fifth Circuit opinion examining the “highly compensated” regulatory exemption from the overtime requirements of...more

Fisher Phillips

Checking Off USDOL's Regulatory Agenda

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While stakeholders await final regulations on the white-collar exemptions (a/k/a Overtime Rule 2.0), regular rate, and joint employment, WHD has started sending the White House more proposals – first tackling tips and the tip...more

Epstein Becker & Green

New Jersey Enacts Sweeping “Wage Theft” Law

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On August 6, 2019, Acting Governor Sheila Oliver signed S1790 into law (“Law”), toughening the penalties for failure to pay wages, benefits, and overtime (collectively “wages”) owed to workers and extending the statute of...more

Proskauer - Law and the Workplace

DOL Validates Independent Contractor Relationships in the On-Demand Marketplace

In an opinion letter issued April 29, 2019, the U.S. Department of Labor’s Wage and Hour Division concluded that a “virtual marketplace company” (“VMC”) that connects service providers with consumers is not the employer of...more

Jackson Walker

New Fifth Circuit Decision Upholds Independent Contractor Status for Directional Driller Consultants Under the Fair Labor...

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Claim by Directional Drillers for Overtime Pay. The boom for domestic energy producers, particularly in the Permian Basin, has been accompanied by the companion challenge of how to compensate transient oilfield professionals...more

Fisher Phillips

Oldest Nationwide Misclassification Case Against Uber Gets Settled For $1.3M

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The first-ever national misclassification case brought against Uber has now been put to bed. A federal court judge in North Carolina yesterday gave her blessing on a $1.3 million settlement wrapping up the litigation, handing...more

Payne & Fears

Key California Employment Law Cases: October 2018

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This month’s key employment law cases address the test for independent contractor status, the legality of an incentive compensation system, and personal liability for wage and hour violations....more

Epstein Becker & Green

A Look Back on Wage and Hour Developments in 2018: Blockbuster Cases, FLSA Amendments, and More

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Arguably, the very first workplace regulation, dating back thousands of years, was one involving wage and hour issues—the mandatory day of rest. While much has changed over the great many years since then, the centrality of...more

Foley & Lardner LLP

Wage and Hour Compliance – Better Guard Your Own Parking Spot

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Many companies at one time or another get overtime compliance wrong, at least to some degree. It’s an expensive topic. Liability under federal law for failing to correctly pay overtime comes at the hefty price of all unpaid...more

Fenwick & West LLP

GrubHub Prevails in Driver Classification Case, Ruling Offers Insights for On-Demand Economy

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In a long-awaited decision, a San Francisco federal judge ruled that GrubHub properly classified a delivery driver as an independent contractor. The Feb. 8 ruling sheds meaningful light on the prominent and heavily-litigated...more

Benesch

InterConnect FLASH! No. 65 - Shipper’s Control Over Courier’s IC Drivers Results in Adverse Joint Employer Ruling

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Recently the U.S. District Court for the Southern District of West Virginia determined that Co-Defendants, Omnicare, Inc. (“Omnicare”) and Act Fast Delivery of West Virginia, Inc. (“Act Fast”) were acting as joint employers...more

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