Misclassification

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Out of the Box: Legal guidance for the consumer product + retail industry - Volume 2, Issue 2, Summer 2014

In This Issue: - Are Offers Of Free Credit Monitoring About To Become Mandatory In Data Breach Incidents? - Mandatory “Made-In” Labeling in the EU - A New Dawn for California Class Actions - Recent...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

Are You Secretly Running a Construction Business? State Law Says You Might Be!

Late last month, I spoke at a regional meeting of the Wireless Internet Service Providers Association, and many of the WISPs in attendance were surprised to learn that not only were they in the Internet service business, but...more

Feds Get Technical! Technical! (Sung to Olivia Newton John’s “Let’s Get Physical” of course)

We already know that California’s exempt/non-exempt classification scheme is a complicated system of checks and balances that takes most employers the help of an attorney to traverse. Well, just so we don’t get overly...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

California Supreme Court Clarifies Commissioned Employee Exemption

Peabody v Time Warner Cable, Inc. (July 14, 2014, No. S204804) 2014 Cal Lexis 4755, came to the California Supreme Court from the Ninth Circuit, through a certification procedure that is used when a question can determine the...more

July 2014 Monthly Independent Contractor Compliance and Misclassification Update

The leading development this month in the area of independent contractor compliance and misclassification is an Arizona case that deals with a commonplace event – but one that carries with it the potential for unanticipated...more

California Court of Appeal Enforces Contractor’s Agreement to Arbitrate Misclassification Claims Out of State

On Monday, July 21, 2014, the California Court of Appeal issued its opinion in Galen v. Redfin Corp., A138642. This case is important for two reasons: the court upheld an arbitration agreement between a Seattle-based company...more

Third Circuit: Availability of Classwide Arbitration is an Issue for the Courts – Not Arbitrators – Unless the Parties Agreed...

Wednesday, the Third Circuit held that the determination of whether an agreement allows classwide arbitration is a question of arbitrability for the courts “unless the parties unmistakably provide otherwise.” Opalinski v....more

InterConnect FLASH! No. 40 - Supreme Court Declines Swift Review - But It Is Not The End Of The Story

The U.S. Supreme Court recently declined to review the Swift worker misclassification case, which has been working its way through the courts for several years. That decision has brought up a lot of questions on the...more

California Supreme Court Makes It Easier For Workers in Misclassification Cases To Obtain Class Certification

Employment class action litigation is often won or lost with a class certification ruling. If the employer is successful in opposing class certification, then these cases often go away with little or no fanfare and limited...more

Benesch Perspectives - July 2014 Newsletter

In this issue: - Not-for-Profit Spotlight - Giving to Religion Trending Downward for a Decade - What You Can Learn from Giving 2014 - Is the Front Door Closing on the Parsonage...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

The Second Prong of The Inside Salesperson Test – Is the California Supreme Court Poised to Upend The Commissioned Employee...

In Peabody v. Time Warner Cable, Inc., the California Supreme Court clarified that, to satisfy the commissioned employee exemption, employees must be paid more than 1.5 times the minimum wage in the employee's actual pay...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

The Supremes Sing Out About Control: It is the Primary Test for Deciding Whether a Worker is an Employee or an Independent...

In December 2008, newspaper carrier Maria Ayala sued Antelope Valley Newspapers on behalf of herself and a putative class of other newspaper carriers. The crux of her allegations in the complaint is that Antelope Valley...more

U.S. Supreme Court Grants Review of Restrictions on Federal Agency Rulemaking in Mortgage Loan Officer Overtime Case

In our July 2013 alert, we reported on a federal appellate court ruling in Mortgage Bankers Association v. Harris. Mortgage Bankers Association challenged a U.S. Department of Labor (DOL) 2010 opinion letter in support of...more

Employment Law – Delivery Drivers Wrongfully Classified as Independent Contractors Rather Than Employees

Fernando Ruiz, et al. v. Affinity Logistics Corp. - United States Court of Appeals for the Ninth Circuit (June 16, 2014) - The causes of action that can be asserted against an employer often depend on whether...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

Arizona District Court Rejects Joint Employer Arguments in Independent Contractor Case Alleging Misclassification of Truck Drivers

A month ago we discussed the Ninth Circuit’s decision in Ruiz v. Affinity Logistics Corp., Case No. 12-56589 (9th Cir. June 16, 2014), in which the employer treated its delivery drivers as employees in everything but name,...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

Department of Labor to Revise Federal Regulations Interpreting the Right to Receive Overtime Pay under the Fair Labor Standards...

In a March 2014 Memorandum, President Obama directed the Department of Labor to “modernize and streamline” the regulations that dictate when an employer may lawfully designate an employee as exempt from overtime pay under the...more

California Supreme Court Addresses Test for Independent Contractor Status and Class Certification of Independent Contractor...

Employers frequently struggle with determining when a service provider should be classified as an independent contractor, as opposed to an "employee." Getting the answer to that question wrong can prove significant in many...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

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