Misclassification Class Action

News & Analysis as of

Latest Misclassification Settlement Fails To Lyft Sharing Economy Companies

Late last week, a federal court judge in California approved a settlement agreement whereby ride-sharing company Lyft agreed to pay $27 million to approximately 95,000 California drivers who alleged they were misclassified as...more

Spoiler Alert: Rulings Expected on Uber and Lyft Independent Contractor Settlements

Judges in California will likely soon issue rulings affecting two ride-sharing companies, Uber and Lyft. Those connected with the Lyft case will be pleased because it is expected that a federal district court judge in San...more

Independent Contractor Standards Uncertain Despite New Administration

Seyfarth Synopsis: It remains to be seen whether the Trump administration will redirect its enforcement priorities away from independent contractor misclassification issues or curtail the applicable standards in the coming...more

February 2017 Independent Contractor Misclassification and Compliance News Update

Four of the eight court cases we report on below in our February 2017 monthly update of IC misclassification cases involve Uber, and each of those cases were victories for the ride-sharing, on-demand company. Although none of...more

Uber Court Victory A Win For Sharing Economy Companies Everywhere

A California court quietly granted ride-sharing giant Uber a significant victory last week in the ongoing misclassification battle over whether its drivers are properly classified as independent contractors. Although this...more

Third Circuit Affirms Rejection Of Class Arbitration Where Employment Agreement Was Silent On Whether Arbitration Could Proceed On...

Plaintiffs, former staffing managers of defendants’ international staffing agency, alleged that defendants misclassified them as overtime-exempt employees in violation of the Fair Labor Standards Act. Following earlier...more

3 Class Actions, 3 Motions to Compel Arbitration, 1 Class Action Survives

The Ninth, Sixth, and Third Circuits all recently issued decisions about whether putative class or collective actions could proceed despite the existence of arbitration clauses. In two of those decisions, the courts found...more

January 2017 Independent Contractor Misclassification and Compliance News Update

January was a busy month for independent contractor misclassification – and IC compliance. In addition to Lowe’s $2.85 million settlement with installers whom it classified as ICs, Lufthansa agreed to pay $1.1 million in...more

This is Lowe’s, Don’t Be Like Lowe’s: A Checklist For Employers

Have you ever bought an appliance from Lowe’s Home Centers and been told that you have to contact one of its “licensed installers” and setup a time for them to come to your house to install the appliance? Subsequently, when...more

Court Refuses to Certify Class Due to Lack of Adequacy of Class Counsel

A recent case reflects that some courts will look not only to the presence or absence of conflicts or litigation misconduct but also to the plaintiffs’ counsel’s experience in other class action cases. In Goers v. L.A....more

December 2016 Independent Contractor Misclassification and Compliance News Update

In our update for last month’s developments in this area of the law, we report on five significant court cases involving companies in the transportation industry that use ICs as an integral part of their business model. Each...more

New Uber Ruling Reveals Another Costly IC Misclassification Exposure for On-Demand Companies

Gig economy companies based on an independent contractor model beware. On December 14, 2016, a federal court in Pennsylvania denied a motion to dismiss an “on-call” wage claim in a class action lawsuit filed against Uber by...more

November 2016 Independent Contractor Misclassification and Compliance News Update

Our news update for last month highlights the fact that IC misclassification lawsuits are happening across the country and in virtually every industry, both in the on-demand economy and in more traditional business sectors....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

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

Uber and IC Misclassification in New York: The Other Shoe May Be Dropping

The New York Times today reported that the New York State Department of Labor has found two Uber drivers as eligible for unemployment benefits after having rejected the company’s argument that the drivers are independent...more

September 2016 Independent Contractor Misclassification and Compliance News Update

The past month’s judicial and administrative activity in the area of IC misclassification reflects the wide range of industries facing these types of claims: communications; cleaning services; transportation and delivery...more

Litigating California Wage & Hour and Labor Code Class Actions

Introduction and Overview - Since the turn of the century, there has been a huge increase in the number of class action lawsuits alleging violations of California’s overtime laws or other Labor Code statutes and wage and...more

Lessons Unlearned: Franchise and Independent Contractor Agreements Can Be Kiss of Death

The Third Circuit’s decision is a pointed reminder to franchisors, as well as businesses that use independent contractors, that the form of their agreements can either serve their legal interests or harm them in employee...more

Uber Enforces Arbitration Due To Delegation Clause And Opt Out

The 9th Circuit’s decision to enforce the arbitration agreement in Uber’s agreements with drivers made lots of news last week.  And although it includes no new principles of law, it does emphasize some principles that come up...more

Hope for Employers: Court Says Home Health Aides Can’t Bring Collective Action

Courts have been quick to allow one employee claiming to be due overtime to sue on behalf of others in the same job category by certifying a collective action, allowing that employee to represent the class and requiring the...more

Federal Appeals Court Hands Uber Major Victory In Arbitration Agreement Fight

The 9th Circuit Court of Appeals delivered a significant victory to Uber and other gig economy businesses by reversing a trial court’s denials of Uber’s motions to compel arbitration in companion class action lawsuits brought...more

The Big Uber Arbitration Win, As Explained By 3 Fisher Phillips Lawyers

A few days ago, Uber won a significant battle when the 9th Circuit Court of Appeals overturned a lower court’s decision and upheld the company’s arbitration agreements. No doubt about it, this is a big win. You might remember...more

And Now There Are Two: The Ninth Circuit Strikes Class Arbitration Waivers Joining the Seventh Circuit on Finding that these...

Seyfarth Synopsis: The Ninth Circuit joined the Seventh Circuit and the NLRB in finding that mandatory arbitration agreements that require all claims to be brought by employees on an individual basis violate the NLRA. On...more

Emerging Labor & Employment Law Trends (Part 1)

With summer 2016 almost behind us, employers should begin to plan for the major labor and employment law trends expected to emerge in the final quarter of the year and into 2017. In the first part of this two-part series, we...more

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