Misclassification

News & Analysis as of

The New Overtime Rule: Yes, It Really Is Happening – Are You Ready?

The Department of Labor has issued its final rule revising the overtime regulations for "white collar workers" and the rule goes into effect December 1, 2016 - just four months away. This webinar will explain the new rule,...more

New York Establishes a Super IC Misclassification-Plus Task Force

Yesterday, New York Governor Andrew Cuomo signed Executive Order No. 159 expanding the existing Joint Enforcement Task Force on Employee Misclassification into a Joint Enforcement Task Force on Worker Exploitation and...more

InterConnect FLASH! No. 55 - Disruptors Continue to Create Challenges for the Independent Contractor Business Model

Disruptors Continue to Create Challenges for the Independent Contractor Business Model - Our increasingly on-demand, technology-driven economy has been a petri dish for disruptive business models that are responsible...more

Gig Employer Heartburn: Challenge to GrubHub’s Classification System Continues

A putative class action case, alleging that online food delivery service GrubHub misclassified its drivers, has survived a motion to dismiss and will proceed in California federal court. Noting that GrubHub’s view of the...more

That’s a Wrap: Fox Reaches Deal with Unpaid Interns

Fox Searchlight and Fox Entertainment Group have reached a preliminary settlement with a group of former unpaid interns, possibly resolving the lawsuit that resulted in a Second Circuit decision that redefined the test used...more

Classifying Independent Contractors and Employees – The $100 Million Question

Whether a service provider is correctly classified as an employee or an independent contractor has an important legal consequence: potential liability, both to misclassified employees and to regulators for fines. Many startup...more

June 2016 Independent Contractor Misclassification and Compliance News Update

The poster children of IC misclassification cases dominated the news in June: Uber, Lyft, GrubHub, FedEx, an exotic dance club, and a trucking transport company. It was not a good month for any of them, yet as we have...more

Maryland Employers Will Face Tougher Sanctions for Misclassifying Workers as Independent Contractors

The heightened focus on misclassification of workers as independent contractors should cause concern for employers. At least 30 states have partnered with the federal government to target worker misclassification, with...more

Supreme Court Declines Review of D.C. Circuit’s Decision Upholding DOL Home Care Rule as Regulatory and Litigation Focus on Home...

On June 27, 2016, the U.S. Supreme Court denied the plaintiffs’ petition for a writ of certiorari in Home Care Association of America v. Weil, leaving the U.S. Department of Labor’s (“DOL”) Home Care Rule intact. The Home...more

Five New State Laws Will Soon Affect Colorado Employers

Colorado Governor John Hickenlooper recently signed five bills into law that will soon impact employers in a number of different ways. Employers who do business in the state will face a new legal framework with respect to...more

Seventh Circuit Voids Employee Promises to Not Pursue Wage and Hour Claims as Members of a Class or Collective Action

Many employers will be surprised to learn that, under some circumstances, the National Labor Relations Act (NLRA) may regulate their ability to enter into certain contractual agreements with employees. The decision of the...more

In Case You Missed It: Launch Links - June 2016 #3

Some interesting links we found across the web this week: Startup spending guide: When freebies will do - Startups can benefit from free services to make their websites more efficient and user-friendly. See these...more

Wait – Senator Warren DIDN’T Slam The Gig Economy?

Outspoken Massachusetts Senator Elizabeth Warren isn’t known for mincing words. Whether she’s telling a big bank to “go to hell” from the floor of the Congress or calling Donald Trump a cancerous demagogue, she is anything...more

Fourth Circuit's Exotic Dancer Decision May Affect Other Independent Contractor Classifications

Earlier this month in McFeeley v. Jackson Street Entertainment, LLC, the Fourth Circuit Court of Appeals (which includes North Carolina and South Carolina) concluded that exotic dancers were employees entitled to minimum...more

$240 Million Settlement Closes Chapter on FedEx IC Misclassification Lawsuits

FedEx yesterday announced that it reached a settlement of its remaining independent contractor class action lawsuits in 20 states with its Ground Division drivers for $240 million, pending court approval. Coming on the heels...more

DOL's final rule increases minimum salary for overtime exemptions

The Fair Labor Standards Act (FLSA) generally requires employers to pay employees at least the federal minimum wage and overtime compensation for all hours worked over 40 in a workweek. Overtime pay must be at least 1½ times...more

The Fourth Bite at the Apple Uncovers a “Worm” for Duane Reade

Just last week, we offered a web training to our clients highlighting the continuing challenges faced by employers as they strive to comply with state and federal wage and hour laws. A June 9th decision by New York District...more

Are exotic dancers employees or independent contractors? Fourth Circuit says they are employees

In May 2016, the Fourth Circuit applied a six-part, economic realities test to determine that two Maryland dance clubs had misclassified their exotic dancers as independent contractors. This case is important for several...more

The Purge: Gig Economy

The year is 2020. In a futuristic America plagued by employment lawsuits, the federal government sanctions a three-year period in which all gig economy companies are exempt from labor and employment laws. Internet-based...more

Uber-Expensive Settlement Could Be Uber-Important To Employers

The ride-sharing company Uber recently announced a preliminary $100 million agreement to settle claims alleging that it improperly classifies its workforce as independent contractors. Because the settlement involves the...more

What you need to know about the new FLSA overtime rules

The U.S. Department of Labor recently announced that there will be significant changes to its overtime rules under the Fair Labor Standards Act (“FLSA”). These new rules are expected to affect over 4.2 million employees and...more

How To Manage Freelancers In The Gig Economy

It is estimated that more than one in three Americans currently perform some freelance work, whether as a supplement to their day jobs, or as their full-time gig. We all know (because the media tells us) that millennial...more

Oilfield Service Companies Face Daunting Challenges

A focus on oilfield services companies’ decades old compensation plans for their service technicians began shortly after President Obama took office in 2009. The U.S. Department of Labor (DOL) commenced a more concentrated...more

May 2016 Independent Contractor Misclassification and Compliance News Update

TELECOM SALES AND MARKETING AGENTS GAIN CERTIFICATION IN IC MISCLASSIFICATION CLASS ACTION. A New York federal district court grants conditional certification of a proposed FLSA nationwide collective action brought against...more

First Circuit Affirms FAAAA Preemption of Massachusetts Independent Contractor Law

On May 11, 2016, the First Circuit Court of Appeals issued the latest of several decisions supporting and furthering federal preemption of the Massachusetts independent contractor statute for businesses that qualify as motor...more

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