Misclassification

News & Analysis as of

Lyft Multi-Million Dollar Settlement Leaves Classification Question Unsettled

prykhodov © 123RF.com Ride-Sharing service Lyft agreed to pay $12.25 million and provide drivers with certain additional workplace protections as settlement of a proposed class action lawsuit filed in California brought by...more

Independent Contractors: Can You Still Use Them?

A while back, I got this question: Can we still use independent contractors for our business? This answer is certainly yes. But you wouldn’t know it from all the headlines of late....more

Employment Law Navigator – Week in Review: February 2016

Equal pay and EEO-1 reports made headlines last Friday as the EEOC and the White House celebrated the 7th anniversary of the Lilly Ledbetter Act. The EEOC announced a proposed new requirement for federal contractors and...more

Uber and Lyft Choose Different Routes in Navigating Legal Challenges

The future of ride-sharing companies has hung in the balance for more than two years while class actions and labor complaints were pending against industry giants Uber, Lyft and others. The ride-sharing companies have...more

December 2015 / January 2016 Independent Contractor Compliance and Misclassification News Update

This Update covers the two-month period of December 2015 and January 2016. The headnote for this period is: don’t classify drivers as ICs unless you do it right! Eight of the nine cases reported below involve drivers....more

Starting Off The New Year Right

As we all begin 2016 with resolutions for a better year, it is also a prime time to review your company’s policies to help avoid employment-related minefields. In addition to certain new obligations beginning this year,...more

Employer Beware: Be Prepared for New Labor Regulations Coming in 2016

The Fair Labor Standards Act (“FLSA”) is quite possibly the labor law that employers grapple with more than any other. The regulations can be murky at best when actually applied and the price tag for running afoul of the...more

Employment Law - January 2016

Does The ADEA Permit Disparate Impact Suits by Applicants? Eleventh Circuit Says Yes - Why it matters - The Eleventh Circuit Court of Appeals created a circuit split with a decision that the Age Discrimination in...more

Chebotnikov v. LimoLink, Inc.: a Cautionary Tale Concerning the Use of Forum-Selection Clauses

At the end of last year, a federal court in Massachusetts found that a forum selection clause in an Iowa company’s standard form service-provider agreement did not apply to claims asserted under the Fair Labor Standards Act...more

Employment Law Navigator – Week in Review: January 2016 #2

Last week, a California judge made news when he threw out a $7.1million jury verdict. The verdict had been handed down in the high-profile age and disability discrimination suit brought by the well-known sports curmudgeon...more

Fourth Circuit Says Insurance Investigators Do Not Qualify for Overtime Exemption

Property and liability insurance carriers typically employ inspectors whose jobs involve investigations in support of their claims adjustment functions. Last month, the Fourth Circuit Court of Appeals (which includes North...more

Trying To Avoid Liability by Outsourcing Labor to Staffing Companies? It May Not Work As Well As You Think!

Joint employers beware… A recent case settled by the United States Department of Labor (DOL) Wage and Hour Division highlights how companies who outsource labor to staffing agencies may want to take precautions to ensure they...more

The Fourth Circuit’s Countdown to 2016 Includes Two FLSA Classification Decisions

While we were in the midst of office holiday parties and end of the year celebrations, the Fourth Circuit Court of Appeals came down with two precedential decisions for employers to ponder in the New Year. In Williams v....more

Nothing New for Doc Review: Federal Court Rules That Doc Review Attorney, Like Other Practicing Lawyers, is Exempt

The lawyers in our readership are quite familiar with the fact that, as a general matter, practicing attorneys are not entitled to overtime pay under the FLSA. But does that exempt status change when an attorney is retained...more

New Year's Resolution for 2016: Avoid Independent Contractor Misclassification

The use of nonemployee workers is more prevalent than ever, and challenges to these relationships are growing just as rapidly. Entire business models are at stake. The Internal Revenue Service (IRS), the Department of...more

Employee or Independent Contractor? What this Means for your Workers Compensation Case.

How an employee is classified in Illinois factors in significantly when it comes to a workers compensation case. Many workers who sign on as independent contractors are unsure of their rights. Many employees are classified as...more

The InterConnect FLASH! NO. 52 - Transportation Industry Independant Contractor Program Assessment

Worker classification and regulatory compliance issues have resulted in numerous, costly judgments and settlements in the transportation industry. With the year drawing to a close, and no end in sight as to the pressures on...more

Signs of (American United) Life for Independent Contractor Status in Massachusetts

Independent contractor misclassification claims have become an epidemic — nationally and especially in Massachusetts. Under most tests for independent contractor status, whether an individual’s services are within the usual...more

North Carolina Governor Signs Executive Order on Worker Misclassification

On December 18, 2015, North Carolina Gov. Pat McCrory signed an executive order establishing an “Employee Classification Section” within the state’s Industrial Commission. The Order, which took effect immediately, tasked...more

Labor and Employment Law Roundup – The Year in Review

Employers have been buffeted over the last several years by significant changes in labor and employment laws at the federal, state and local levels, and 2015 was no exception. As the year draws to a close, here is a recap of...more

Federal Agencies Issue Guidance to Business Owners: A Forecast of Enforcement Trends

Over the past few months both the IRS and the Department of Labor (DOL) have separately issued guidance emphasizing the importance of proper worker classification and some of the more common employment tax-related issues...more

@Work: Your HR and Employment Law Update - December 2015

With 2015 almost wrapped up, it is a good time to highlight the cases and administrative guidance that packed the biggest punch in the workplace over the last year. Some of this year’s biggest decisions carried a common...more

Oregon Supreme Court Case Reminds Businesses about the Complexity of Independent Contractor Classification

Correctly classifying workers as either employees or independent contractors can be complicated and difficult. Multiple and different classification tests apply to a single working relationship – including, but not limited...more

District Judge Rules Uber’s Arbitration Agreements Unenforceable on Public Policy Grounds

On September 2, we addressed the much-publicized O’Connor v. Uber Technologies, Inc. case (No. 13-cv-03826-EMC) pending before the U.S. District Court for the Northern District of California. In O’Connor, a group of 160,000...more

InterConnect FLASH! 51 – The Motor Carrier Employer Amnesty Program of California : A Wolf in Sheep’s Clothing?

Starting January 1, 2016, eligible motor carrier’s performing drayage services in California can apply for relief under the Motor Carrier Employer Amnesty Program of California (the “Program”). Under the Program, provided an...more

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