Independent Contractors Wage and Hour

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

Employment Law Summer Recap 2014: Part 1 of 11 – FedEx sings Nico & Vinz’s “Am I Wrong”…to Classify Our Drivers as Independent...

Am I wrong for thinking out the box from where I stay? Am I wrong for saying that I choose another way? Those are the opening lyrics to Nico & Vinz’s (catchy would be an understatement) summertime hit...more

Independent Contractors Lying In Wait… An Employment Law Perspective

The Issue: Misclassification of employees as independent contractors is common and it can have “quicksand” impact on employers. In addition to litigation expense, employer risks include compensation and penalties for Wage...more

Sea Change: Ninth Circuit Holds That FedEx Drivers Are Employees — Not Independent Contractors

The Ninth Circuit recently addressed the nearly decade long misclassification dispute between FedEx and its drivers, holding that drivers in California (as well as in Oregon) are FedEx employees, not independent contractors. ...more

August 2014 Monthly Independent Contractor Compliance and Misclassification Update

This month’s headline development are the seismic decisions, issued on August 27, 2014 by the U.S. Court of Appeals for the Ninth Circuit, concluding as a matter of law that FedEx Ground had misclassified over 2,300 drivers...more

Worker-Classification Lawsuit Claims Drivers Are Employees, Not Independent Contractors

A class-action suit recently filed in Massachusetts against an on-demand car service alleges the company misclassified its drivers as independent contractors instead of employees. As a result, according to the complaint, the...more

Quirky Question # 238, No Laughing Matter – Company Found Liable for Wrongfully Terminating Independent Contractor’s Agreement

Question: My company relies on independent contractors, over whom we don’t exert control. They often joke around with each other. I’m not liable for employment discrimination if I terminate one of them after they...more

No Laughing Matter: Company Found Liable for Wrongfully Terminating Independent Contractor’s Agreement after a Complaint about a...

Companies using independent contractors should be aware of increased enforcement efforts from federal and state labor and tax authorities over misclassification of workers under wage and hour and tax laws. In Washington, this...more

NLRB Will Charge McDonald’s as “Joint Employer” For Franchisee Labor Violations

In a move with far-reaching ramifications for all businesses that license their brands to independent contractors including franchisees, the National Labor Relations Board (“NLRB”) announced on July 29, 2014 that it has...more

The Potential Impact of the NLRB’s Position that McDonald’s and its Franchisees are “Joint Employers”

The National Labor Relations Board created a stir last week when it announced that it intends to hold McDonald’s USA responsible for its franchisees’ violations of employment law. The announcement has created concern and...more

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

Motor Carriers Face Uphill Battle After California Supreme Court Decision

Harris v. Pac Anchor Transportation, Inc., No. S194388 (July 28, 2014): In a unanimous decision, the California Supreme Court has held that the Federal Aviation Administration Authorization Act of 1994 (FAAAA) does not...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

Standard for Class Certification of Independent Contractors Clarified by California Supreme Court

In Ayala v. Antelope Valley Newspapers, the California Supreme Court held that the proper test for determining whether newspaper carriers could proceed as a class on the issue of their employment status was the employer’s...more

California Supreme Court Holds Independent Contractor Misclassification Claims Can Be Determined by Common Proof – But Only in...

In its first employment-related class certification decision since its seminal ruling in Duran v. U.S. Bank, the California Supreme Court, in a fragmented opinion, reversed the denial of class certification for a group of...more

Did You Know…California Supreme Court Holds That a Challenge to Independent Contractor Status Is Class Certifiable

In Ayala v. Antelope Valley Newspapers the California Supreme Court held that the critical factor in determining whether a worker is an employee or an independent contractor is “the degree of a hirer’s right to control how...more

California Supreme Court Nixes Certification Denial Ruling Against Newspaper Carriers Classified as Independent Contractors

The California Supreme Court recently held that a trial court needed to revisit its class certification decision regarding newspaper carriers who alleged that they should have been classified as employees rather than...more

California Employment Law Notes - July 2014

"Unauthorized Alien" Who Provided False SSN Can Proceed With Disability Discrimination Lawsuit - Salas v. Sierra Chem. Co., 2014 WL 2883878 (Cal. S. Ct. 2014) Vicente Salas worked on Sierra Chemical's production...more

Ninth Circuit Shows No Affinity for Independent Contractor Status in Delivery Drivers

Delivering another blow to the independent contractor model, the Ninth Circuit Court of Appeals held this week that furniture delivery drivers for Affinity Logistics were employees under California law, not independent...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

The Devil is in the Details: Advising Your Clients on the Affordable Care Act

The Affordable Care Act (ACA) represents a fundamental shift in healthcare delivery and insurance. The law is complex and many of its provisions are delayed due to implementation difficulties. However, virtually all...more

Illinois Supreme Court Upholds Employee Classification Act

Yesterday in Bartlow v. Costigan, a unanimous Illinois Supreme Court took a pass, for the most part, on deciding constitutional challenges to provisions of the Employee Classification Act which were amended by the legislature...more

NFL Cheerleader Cries Foul Over Compensation

Standard contracts that sports franchises, such as the National Football League (NFL), use for independent contractors should be closely scrutinized in the wake of a newly filed class action lawsuit that is shining the...more

Employment Law Bulletin: Auditing your practices to avoid wage-and-hour claims in Florida

"Florida is a hotbed of wage-and-hour litigation,” is repeatedly quoted in one report after another over the past year, and this trend is expected to continue throughout 2014. Here is a quick roadmap of compliance questions...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

Take 5 Newsletter: An Employer's "Top 5" Action Items for 2014

It's December, and human resources professionals and law departments are reflecting on the issues addressed in 2013 and giving thanks for incident-free holiday parties. But the big question is this: What issues should get...more

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