Misclassification

News & Analysis as of

Recent Case Reminds Companies That, Though Much Embattled, Independent Contractor Classifications Can Be Valid

The dividing line between employees and independent contractors has been a hot topic in employment law for several years. In addition to the interest the federal government has taken in possible misclassification of...more

Employment Flash - September 2014

In This Issue: - SEC Pays First Whistleblower Award to Audit and Compliance Professional - Supreme Court Allows Affordable Care Act Contraceptives Religious Exemption - EEOC Adopts New Pregnancy...more

Misclassified Employees Not Barred From Recovering Damages Based on Value of ERISA Plan Benefits They Should Have Been Provided:...

A federal court has held that plaintiffs who proved they had been misclassified as independent contractors, and should have been considered employees, could recover money damages under state law based on the value of the...more

Attn. General Counsel: Big Changes are Coming to Wage-and-Hour Law

The White House has already taken steps to propel no less than three significant changes in wage-and-hour law, all of which could have wide-ranging effects on employers of all sizes. The likely changes include an increase in...more

Employment Law Summer Recap 2014: Part 8 of 11 – New York’s Coldest Summer, Especially for Employers Who Utilized Unpaid Interns

It felt like we were in a dream. Or maybe San Diego. Day after day, 82 degrees and little humidity. In a word: pleasant. We know next summer probably won’t be the same, but we sure enjoyed this one. That’s right – this was...more

Claims Handlers: It’s Time to Adjust Our Claims!

Many insurers have a longstanding practice of paying claims adjusters a set weekly salary, regardless of the number of hours they actually work. The practice has support in federal labor regulations; the regulations...more

Misclassification of Workers: An Attempt to Save Could Cost Your Business A Bundle

Many business owners, including those in the construction industry, have noticed that their classification of workers is being closely scrutinized by a variety of federal and state regulatory agencies. There is no indication...more

Silicon Valley Misclassification: ‘New York’ Magazine Focuses on How the 1099 Economy May Be Exposing Tech Start-Up Companies to...

Today’s online edition of New York Magazine’s “Daily Intelligencer” includes a comprehensive article on how Silicon Valley start-up tech companies using “the 1099 model” may be exposed to employment, tax, and benefit law...more

Employment Law: Sep 2014

California Enacts Paid Sick Leave - Why it matters: Employers in California must now provide three paid sick days per year for workers, pursuant to a new law going into effect on July 1, 2015. The controversial...more

Employment Law Summer Recap 2014: Part 4 of 11 – Chris Pratt and Unexpected Surprises in Hollywood and the World of California...

This summer, those (31?) of us who watched Chris Pratt steal scene after scene in Parks & Recreation saw him ripen into the star we always hoped he’d become. First he charmed audiences as the voice of Emmett in the Lego Movie...more

U.S. Labor Department Awards $10.2 Million to 19 States to Help Finance Their Crackdown on Independent Contractor...

The news from Washington, D.C. yesterday is that the U.S. Department of Labor is funding 19 states’ efforts to crack down on businesses that unwittingly or intentionally fail to make unemployment contributions for individuals...more

Employment Law Summer Recap 2014: Part 1 of 11 – FedEx sings Nico & Vinz’s “Am I Wrong”…to Classify Our Drivers as Independent...

Am I wrong for thinking out the box from where I stay? Am I wrong for saying that I choose another way? Those are the opening lyrics to Nico & Vinz’s (catchy would be an understatement) summertime hit...more

Misclassification of Employees As Independent Contractors In the News

Media outlets throughout the country have recently reported that it appears there was little to no oversight to ensure contractors, which were working on projects receiving federal stimulus money, were not misclassifying...more

Federal Court Finds No Willful Violation for Misclassification of Mortgage Loan Officers

A federal court in Oklahoma delivered another blow to claims by mortgage loan officers that they are entitled to overtime under the Fair Labor Standards Act (FLSA). In Chapman v. BOK Financial Corporation, the court...more

Independent Contractors Lying In Wait… An Employment Law Perspective

The Issue: Misclassification of employees as independent contractors is common and it can have “quicksand” impact on employers. In addition to litigation expense, employer risks include compensation and penalties for Wage...more

Worker Classification Task Force Established in Virginia

On August 14, 2014, Virginia Governor Terry McAuliffe signed Executive Order 24 to establish an inter-agency task force on worker misclassification and payroll fraud. The task force is a response to a 2012 report of the...more

Recent Oregon Decision: A Warning on Independent Contractor Classification

Do your “independent contractors” work from your company’s offices? Do they market their own separate businesses? Do they have the right to hire others to perform the work they perform for you? If the answer to any of these...more

Three Point Shot

Female Football Player Throws Flag at LFL over Bare Wages - The three-year championship run of the Los Angeles Temptation was snapped in 2013 when the upstart Chicago Bliss, led by the quarterback and two-time league...more

Learning From LinkedIn: More Big Name Employment Law Violations Showcase Need For Wage and Hour Compliance Training

I confess that up until the huge LinkedIn case last month, I had no idea what wage and hour training even is, or why anyone needed to take it. After all, it’s pretty simple, right? Pay nonexempt workers their regular wage for...more

Sea Change: Ninth Circuit Holds That FedEx Drivers Are Employees — Not Independent Contractors

The Ninth Circuit recently addressed the nearly decade long misclassification dispute between FedEx and its drivers, holding that drivers in California (as well as in Oregon) are FedEx employees, not independent contractors. ...more

August 2014 Monthly Independent Contractor Compliance and Misclassification Update

This month’s headline development are the seismic decisions, issued on August 27, 2014 by the U.S. Court of Appeals for the Ninth Circuit, concluding as a matter of law that FedEx Ground had misclassified over 2,300 drivers...more

Ninth Circuit Reverses District Court, Rules FedEx Drivers in California and Oregon are Employees

Last week the Ninth Circuit issued a pair of decisions in the nearly-decade long misclassification dispute between FedEx and its drivers, with the Court of Appeals ruling that drivers in California and Oregon are FedEx...more

Earthquake in the Independent Contractor Misclassification Field: Changed Landscape Following Serious Legal Blow to FedEx Ground...

FedEx Ground has been at the epicenter of the crackdown on IC misclassification by government regulators, state legislators, and plaintiffs’ class action lawyers since 2007, when a California appellate court found...more

Worker-Classification Lawsuit Claims Drivers Are Employees, Not Independent Contractors

A class-action suit recently filed in Massachusetts against an on-demand car service alleges the company misclassified its drivers as independent contractors instead of employees. As a result, according to the complaint, the...more

Federal Ninth Circuit Court Of Appeals Rules FedEx Drivers Are Employees, Not Independent Contractors, Under Both California's and...

Class actions were brought against FedEx in both California and Oregon by FedEx drivers contending they had been misclassified as independent contractors. (Alexander, et al. v. FedEx Ground Package System, Inc. and Slayman,...more

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