Misclassification

News & Analysis as of

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

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

The Final Overtime Rule – Is It Really That Simple?

In This Presentation: •How Did We Get Here? •The Overtime Rule: Four Changes You Must Know •Misunderstandings About the Final Rule •Opposition to the Final Rule •Seven Steps Employers Should Take Now Please...more

Transgender Video Game Industry Employee Converted to Independent Contractor Status Raises Misclassification and Discrimination...

A prominent Washington State video game company, Valve Corporation, creator of Half-Life, Counter-Strike, and Left 4 Dead, has been sued by a former employee it converted into an independent contractor as an accommodation to...more

New Arizona Legislation May Affect the Interests of Arizona Businesses and Employers

Two new statutes, signed into law by Arizona Governor Doug Ducey this legislative session, attempt to set new standards on defining the independent contractor relationship and how wages are regulated. Below is a description...more

Understanding the Final Overtime Rule: Is it really that Simple?

According to the U.S. Department of Labor (DOL), the Final Overtime Rule, which is effective on December 1, 2016, simplifies the regulations to make them easier for employees and employers to understand and apply. Really? ...more

Losing Control: The USDOL's Latest Independent Contractor Test

The use and misuse of independent contractor status has been one of the most talked about issues facing businesses over the past decade. Major newspapers have published exposés, lawmakers have threatened new legislation, and...more

New Federal Overtime Rules Require Action by Employers in 2016

In response to a directive from President Obama to update the regulations that define the overtime exemption criteria for white-collar workers, the Department of Labor has announced new rules that will affect millions of...more

What Is Your Starting Salary? New FLSA Regulations Raise The Bar For U.S. Employers

Employers with salaried employees earning under $47,476 annually should evaluate the impact on their organizations of major changes to employee compensation following new federal wage requirements effective December 1,...more

Federal Overtime Rules Weigh Heavy on Employers

The U.S. Department of Labor has released final rule changes significantly expanding overtime pay eligibility for salaried employees — raising the current overtime entitlement ceiling from $23,660 annually to $47,476. The...more

Retail and Hospitality Employers Grapple With the DOL's Final FLSA Part 541 Regulations

For over a year, retail and hospitality employers have been anxiously awaiting the issuance of the U.S. Department of Labor’s (DOL) final overtime regulations—regulations which many had predicted would impact retail and...more

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