Misclassification Class Action

News & Analysis as of

Uber Drivers: Employees or Independent Contractors?

Since its founding in 2009, Uber has gained both praise and notoriety for shaking up the taxi industry by allowing individuals who meet minimum requirements to provide an on-demand car service via the Uber mobile app. In...more

That is SO last week - July 2015 #3

There’s just no rest for employment lawyers this summer. We had another exciting week. The biggest news was the EEOC’s ruling that Title VII prohibits discrimination on the basis of sexual orientation. The agency found that...more

Client Alert - Interns & Independent Contractors

Second Circuit Reverses Class Certification Ruling in Fox Searchlight Unpaid Intern Case, Directing Trial Court to View Economic Benefit Factors Through New Lens - A federal appellate court in New York handed an apparent...more

Intern or Employee? Second Circuit Outlines Test to Determine Unpaid Interns' Status Under Fair Labor Standards Act and New York...

The U.S. Court of Appeals for the Second Circuit July 2 handed down a significant decision in Glatt v. Fox Searchlight Pictures, Inc. in connection with a pair of lawsuits challenging the legality of unpaid internships under...more

Employment Flash - July 2015

The July 2015 edition of Employment Flash covers a number of developments, including: the U.S. Supreme Court's ruling that job applicants need only show that a religious accommodation was a factor in denying employment to...more

California Employment Law Notes - July 2015

Employee's Inability To Work For A Particular Supervisor Does Not Constitute A "Disability" - Higgins-Williams v. Sutter Med. Found., 237 Cal. App. 4th 78 (2015) - Michaelin Higgins-Williams worked as a clinical...more

Second Circuit Adopts a New Test to Determine Whether Unpaid Interns Should be Classified as Employees

Earlier this month, the U.S. Court of Appeals for the Second Circuit (“Second Circuit”) issued a new test for determining whether interns must be classified and paid like “employees,” as that term is defined in the Fair Labor...more

DOL Meets The Far Side, Targets Independent Contractor Relationships

The all-time best The Far Side cartoon (based on an unscientific survey, sample size of me) is the one with two deer standing in the forest, one with a red circular target imprinted on its chest. The other deer says, “Bummer...more

Second Circuit Announces New Test For Intern Claims and Puts the Brakes on Class and Collective Claims by Interns

On July 2, 2015, the U.S. Court of Appeals for the Second Circuit issued two eagerly awaited decisions that may dampen the recent wave of collective and class actions filed by unpaid interns claiming they should be paid...more

Unpaid Interns: The Second Circuit Pours Cold Water on a Hot Topic

Can businesses use unpaid interns? Over the past few years, this is a frequent question from corporate clients and a mainstay subject in the legal blogosphere (including right here). The heightened interest stemmed from a...more

“On-Demand” Litigation Heats Up This Summer

This blog recently reported on the first wave of lawsuits challenging the classification of independent contractors in the “on-demand” economy. The second wave has now arrived, as numerous tech companies have been hit with...more

That is SO last week - July 2015 #2

Last week, The New York Times’ The Upshot blog covered a topic that has been one of our top concerns for a while: how big data can discriminate. The post followed a Carnegie Mellon University study that reported, among many...more

Glatt v. Fox Searchlight Pictures, Inc. - USCA, Second Circuit, July 2, 2015

Second Circuit vacates district court's ruling that unpaid interns who worked on film Black Swan and at Fox's corporate offices should have been classified as employees and thus entitled to minimum-wage and overtime pay,...more

Second Circuit Adopts The “Highly Individualized” Primary Beneficiary Test In Unpaid Intern Lawsuits

On July 2nd, the United States Court of Appeals for the Second Circuit issued its decisions in Glatt et al. v. Fox Searchlight Pictures, Inc. et al. and Wang et al. v. The Hearst Corp., the two unpaid intern lawsuits heard...more

Business Litigation Report - June 2015

In This Issue: ..From 20 Years to Zero in Six Trial Days - Noted With Interest: ..FedEx Drivers: Employees or Independent Contractors? The Ninth Circuit Weighs in on California’s Murky “Right-to-Control”...more

Washington Federal Court Decertifies Class of Insurance Agents Alleging Entitlement to Overtime

Challenging the classification of workers as independent contractors continues to be a growing area of focus for plaintiffs’ attorneys. However, as a recent federal case from Washington demonstrates, the fact-intensive...more

Second Circuit Deals a Blow to Unpaid Intern Classes

In a pair of closely watched decisions, the Second Circuit Court of Appeals overturned a federal trial court decision that granted class and conditional collective action certification to claims brought by a former unpaid...more

Second Circuit Establishes New Test for Unpaid Intern Claims

The Second Circuit’s ruling provides employers with greater leeway for unpaid internship programs and a stronger defense for class-action lawsuits brought by unpaid interns. In a long-awaited decision, the US Court of...more

Agents Can’t Insure Class Treatment – Varied Experiences Require Decertification

Last week, a federal district court decertified a Rule 23 class of more than 1,000 insurance agents who claimed that Bankers Life and Casualty Co. misclassified them as independent contractors, and, as a result, they were...more

June 2015 Independent Contractor Compliance and Misclassification News Update

The month of June 2015 created more newspaper stories and blog posts on the subject of independent contractor misclassification than any other. Why? Uber lost an IC misclassification case and FedEx Ground agreed to pay $228...more

“Black Swan” Internship Case Creates New Obstacles For Employers In California

In California, internships have always been viewed as a trade-off between prestigious employers and young students looking to get a foot in the proverbial door. College students and graduates looking for highly-coveted...more

Independent Contractor Misclassification: The Hidden Trap of Outsourcing

It’s a beguiling option. Companies that classify workers as independent contractors receive a number of benefits, including elimination of payroll taxes, workers’ compensation insurance, and unemployment insurance...more

Employment Law - June 2015 #2

Joint Employers Can Be Liable for Employee Misclassification in California: Why it matters - Liability under the California Labor Code extends to joint employers that are aware of a willful misclassification of an...more

FedEx to Pay $228 Million in Independent Contractor Misclassification Settlement

Things that $228 Million will buy: – LeBron James’s waterfront mansion in Miami, listed for $15 million – A 710-year old copy of the Magna Carta, sold in 2007 for $21.3 million – The Oakland A’s, sold in 2005 for $180...more

$228 Million: The Cost of Independent Contractor Misclassification for FedEx Ground in California

Yesterday, June 12, FedEx announced in papers filed with the SEC that its Ground Division “has reached an agreement in principle with [drivers] in the independent contractor litigation that is pending in …California [federal...more

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