Misclassification

News & Analysis as of

Handy Proposal May Solve Sharing Economy Business Woes

As startups from Silicon Valley to Silicon Forest continue to flood the market with competing on-demand service platforms “staffed” with independent workers, these same businesses – implementing one of the most disruptive,...more

Uber Drivers Are Workers, Not Self-Employed Contractors

In the case of Aslam and others v Uber BV ET/2202550/15, the Employment Tribunal considered the employment status of Uber drivers. Uber drivers brought a claim in the Employment Tribunal, alleging that they were workers,...more

Your Own Agreements Can Be Your Worst Enemy in IC Misclassification Cases

Companies that use independent contractors (ICs) typically require ICs to sign a contractor agreement prepared by the company. But, if it is drafted like the one reviewed in late September by the U.S. Court of Appeals for the...more

Employers Have Something to be Thankful For as Judge Halts December 1st Effective Date of DOL FLSA Final Rule: Here is What...

In the last six months, nearly every business was sent into panic mode and forced to quickly adjust to the Department of Labor’s (DOL) Fair Labor Standards Act (FLSA) Final Rule that was set to take effect December 1,...more

New Overtime Regulations Enjoined Nationwide

A Texas federal district court judge on Tuesday issued a preliminary injunction temporarily blocking the nationwide implementation and enforcement of the new overtime regulations. The regulations were set to go into effect on...more

Defenses Payroll Tax Fraud

Prosecution for payroll tax fraud is a high priority for the IRS and Department of Justice. Payroll tax fraud occurs in several manners, including false worker classification as independent contractors, understatement of...more

Federal Minimum Salary Increases for Exempt Workers Take Effect December 1, 2016

If you have not audited your exempt employee pay practices for compliance with the federal Department of Labor’s rules announced earlier this year, you have just under two weeks to do so. Starting December 1, 2016, the...more

Labor & Employment Hot Topics Impacting the Construction Industry

A number of employment-related developments are likely to impact the construction industry. This article is intended to briefly summarize some of these developments....more

New York’s Highest Court Rules that Yoga Instructors are Independent Contractors: But Can Other Employers Hold that Pose?

The New York State Court of Appeals and New York City recently provided additional guidance for – and imposed additional requirements on – New York employers that use independent contractors. In In re Yoga Vida NYC, Inc....more

Still Looming – The Regulations Regarding Overtime Exemptions

When we last visited this topic, the proposed regulations revising the overtime exemptions were still very new. The regulations are due to go into effect on December 1 of this year. There has been legislation introduced to...more

Independent Contractor vs. Employee: What Employers Need to Know

If you’re an employer, given the daily balance of juggling business goals, budget concerns and employee harmony, it might seem that you spend most days trying to pull the proverbial rabbit out of your hat. But if your...more

Uber Drivers Uber Happy

As you may have seen from the extensive press coverage, the UK Employment Tribunal has delivered its much anticipated judgment in Aslam and Farrar v Uber. The case was about whether Uber drivers are self-employed contractors,...more

October 2016 Independent Contractor Misclassification and Compliance News Update

Our update for this past month is noteworthy for the fact that we report below on IC misclassification lawsuits plaguing some of the largest and most recognizable companies in the U.S. (like Uber, Amazon, and FedEx) as well...more

The Employment Law Authority - November/December 2016

Court Upholds Employer’s Dreadlock Ban Finds Grooming Policy Did Not Violate Title VII of the Civil Rights Act - A federal appellate court recently held that an employer’s policy banning dreadlocks did not constitute...more

Workplace Policy Institute Insider Report — November 2016

Littler's Workplace Policy Institute Insider Report details key labor, employment, and benefits news and events at the federal, state, local, and global levels. The November edition of the Insider Report turns a spotlight on...more

Clinton v. Trump:  How Will the 2016 Presidential Election Impact the Gig Economy?

With the election just days away, some American voters are staunchly committed to one candidate while others remain hopelessly undecided. If you fall into the latter category, consider the candidates’ positions on the gig...more

NLRB Assumes a Position on Employee Classification in the On-Demand Economy

Seyfarth Synopsis: By filing a complaint against Postmates, Inc. challenging their arbitration waiver, the NLRB assumed that couriers for Postmates are employees, rather than independent contractors. Earlier this month,...more

Will the Jig Be Up for the Gig Economy?

Employers who rely heavily on independent contractors or temporary workers should take note: “Gig” economy companies are now a priority of the U.S. Equal Employment Opportunity Commission (EEOC). The EEOC recently approved...more

Uber and the Gig Economy – is the law keeping up?

After a Preliminary Hearing spanning seven days (including reading the five volume bundle and time for deliberation), an Employment Tribunal has handed down its much anticipated ruling that Uber drivers are workers rather...more

New York’s High Court Issues Pro-Employer Ruling In Misclassification Case

On October 25, 2016, the New York Court of Appeals – New York’s highest court – ruled that non-staff instructors at a yoga studio were properly classified as independent contractors, and were not employees. The Court of...more

Yoga Instructors Can Be Independent Contractors, Says NY Court of Appeals

Earlier this week, the New York State Court of Appeals in Yoga Vida NYC, Inc. v. Commissioner of Labor., No. 130 (N.Y. Oct. 25, 2016), issued a rare decision concerning an unemployment determination, reversing the Appellate...more

Failing to Properly Classify Workers as Employees vs Independent Contractors: Pay Me Now or Pay Me Later - Common Legal Mistakes...

Pay Me Now or Pay Me Later is a series of short tips on common legal mistakes small business owners make. Tip # 5 Properly Classify Workers as Employees versus Independent Contractors...more

New York’s Highest Court Issues IC-Friendly Ruling, Holding That Certain Yoga Teachers Are Valid Independent Contractors

Earlier today, October 25, 2016, the New York Court of Appeals issued an important decision on the issue of independent contractor status. The Court held that a group of yoga instructors working at a New York City yoga...more

New York’s Highest Court: No “Stretch” in Yogi’s Independent Contractor Classification

Seyfarth Synopsis: The New York Court of Appeals recently rejected the narrow view of the Unemployment Insurance Appeal Board and found that substantial evidence did not support a finding that certain yoga instructors were...more

Self-Inflicted IC Misclassification Wounds: How Did FedEx Bludgeon Itself Into Pay Nearing $500 Million to Settle Claims That It...

FedEx’s costs due to IC misclassification are approaching $500 million over the past year as a result of its inability to draft in a valid manner its IC agreement and internal policies governing Ground Division drivers. Last...more

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