Misclassification

News & Analysis as of

Third Circuit Upholds the Motor Carrier Exemption for Drivers Who Did Not, But Reasonably Could Have Been Expected to, Cross State...

Are drivers of a motor carrier who rarely or never drive the carrier's interstate routes covered by the motor carrier exemption of the Fair Labor Standards Act?  Yes, according to the U.S. Court of Appeals for the Third...more

Wage-Hour Audits: Lessons Learned From Chipotle’s Heartburn

Beloved burrito-maker Chipotle Mexican Grill has found itself in a situation messier than the finger foods that brought the company more than $4 billion in revenue last year. A magistrate judge in Scott v. Chipotle Mexican...more

Avon Calling: Employees Allege Overtime Exemption Misclassification

Avon categorizes all of its district service managers (DSMs) under the “administrative” exception of California law that requires employers to pay overtime wages. DSMs are the Avon employees who recruit and train the...more

Employee Misclassification in the Entertainment Industry

Employee misclassification is one of the leading labor abuses in the country. In fact, in recent years, both the Internal Revenue Service and the U.S. Department of Labor have launched a misclassification initiative to combat...more

Uber and Other Startups Facing Independent Contractor Disputes

Perhaps the blurriest line in employment law is the difference between an independent contractor and employee. Companies prefer contractor status because it is cheaper and offers more flexibility. ...more

Virginia & North Carolina Launch New Initiatives on Misclassification of Employees as Independent Contractors

Classifying a worker as an independent contractor rather than an employee significantly affects an employer’s obligations towards the worker and can result in liability for misclassification. Employees are entitled by law to...more

Employment Law Commentary - Volume 27, Issue 4: Mitigating Risks To Maximize The Advantages Of Your Contingent Workforce

The “traditional” workplace as we once knew it is changing, and a key component of this evolution is the rise of the contingent workforce. Companies are continuously seeking innovative ways to cut costs, increase efficiency,...more

The Inside Scoop: Top 10 Employer Mistakes According to the Solicitor of Labor

Meeting in our nation's capital and having a strong public policy group have some definite perks, such as getting the inside scoop on employment law trends directly from the Department of Labor's Solicitor. During a recent...more

Multi-Agency Investigation Successfully Targets Arizona and Utah Construction Companies’ Misclassification of Employees

Sixteen Arizona and Utah companies accused of misclassifying more than 1,000 construction workers agreed to pay $700,000 in back wages and penalties after a multi-year, multi-agency investigation led to consent judgments,...more

Employers Beware! Government Agencies Are Out To Bust You For Misclassifying Your Employees As Independent Contractors

Both federal and state labor authorities are hot on the trail of companies who hire employees and call them “independent contractors.” The United States Department of Labor (DOL) has entered into a Memorandum of...more

April 2015 Independent Contractor Compliance and Misclassification News Update

The leading news in the area of independent contractor compliance and misclassification in April 2015 is the settlement by Macy’s and its logistics company in New Jersey with the delivery drivers and their helpers used by...more

[Event] Sheppard Mullin's Spring 2015 Labor & Employment Law Update - May 5, New York, NY

Please join our experienced attorneys for an informative and lively discussion on a variety of timely topics, including: - Leading Court Decisions and Key Legislative Developments in 2015 - Psychological Disabilities...more

Paying Child Support: Are Your New Hires Being Honest?

Knowing that his old high school friend Iman Dedbeet had just been taken to the cleaners by his ex-wife Goldilocks in a nasty divorce, Johnny Clueless decided to help Iman out by hiring him as his general sales manager at...more

The 2015 White Paper on Independent Contractor Misclassification: How Companies Can Minimize the Risks

In This Issue: - Introduction - Independent Contractor Misclassification: How It Has Arisen ..The Economic and Business Advantages of Using Independent Contractors ..Lax Enforcement and...more

New reporting requirements for employment intermediaries

HM Revenue & Customs (HMRC) continues to strive to reduce the number of workers not subject to PAYE. It has added new reporting requirements for businesses that it considers to be ‘employment intermediaries’. Care is now...more

Is Your Social Media Influencer or Blogger an Employee or an Independent Contractor? What Companies Need To Know Before They...

With the first quarter of 2015 behind us, many companies are already deeply engaged in social media campaigns. Many of these campaigns include the engagement of professional bloggers or other persons with social media...more

March 2015 Independent Contractor Compliance and Misclassification News Update

This past month’s headline developments involve three major developments in the area of independent contractor (IC) misclassification. The first case involves a large department store that agreed to pay most of the costs of...more

Uber, Lyft Decisions Highlight Difficulty of Classifying Workers in the Modern Economy

“The test the California courts have developed over the 20th Century for classifying workers isn’t very helpful in addressing . . . 21st Century problem[s].” So concluded the court in Cotter v. Lyft, Inc., one of two...more

2015 Employment Law Issues Tournament: Second Round Results and Recaps

If you thought the Round of 64 was wild, then wait until you see what happened during the second round. Let’s just say that some shocking upsets left many a bracket busted wide open....more

Uber, Lyft “Employee or Independent Contractor” Cases Provide Classification Lessons for All Employers

The more things change, the more they stay the same. As our “on-demand” society continues to develop and services are offered in ever new and more convenient ways, businesses must remain mindful of the traditional factors...more

Sharing-economy Business Models Challenged – Uber and Lyft

O’Connor et al v Uber Technologies Inc, US District Court, Northern District of California, 11 March 2015 C-13-3826 EMC, Judge Edward M. Chen...Cotter et al v Lyft, Inc., US District Court, Northern District of California, 11...more

Tactics Kill Arb Agreement

In Roe v. SFBSC Management, LLC, No. 14-cv-03616 (N.D. Cal. Mar. 2, 2015), a federal district court in California rejected a night club’s attempt to compel arbitration by a class of performers who claimed they were...more

Uber and Lyft Lose Key Motions in California Independent Contractor Class Actions; Decisions Have Far-Reaching Implications for...

March 11, 2015 was a tough day for Uber and Lyft. Federal court judges in California issued separate decisions yesterday in class action lawsuits brought by drivers of Uber and Lyft who allege that those companies...more

“Something We Cannot Do”: Mies Confirms Limited Review of Class Certification Orders

In Mies v. Sephora U.S.A., Inc., No. A139410, published February 26, 2015 (Mies), the California Court of Appeal, First Appellate District held that a trial court’s broad discretion to rule on class certification encompasses...more

Federal Wage Claims? That's The Easy Part!

Retailers are all too familiar with collective actions filed under the Fair Labor Standards Act (FLSA) making claims for unpaid overtime based on alleged misclassification of employees as exempt, working off the clock, or not...more

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