News & Analysis as of

Misclassification

Employers Struggle With Overtime Classification of Skilled Service Technicians

Over the past several years, we have received multiple inquiries from employers confronted with claims that they have misclassified service technicians as exempt from the overtime requirements of the Fair Labor Standards Act...more

NC “Employee Classification” Law Warrants Caution But Doesn’t Change Substantive Law

On August 11, Gov. Roy Cooper signed into law the North Carolina Employee Fair Classification Act. The portion of the legislation that deals with worker classifications will take effect December 31....more

Allegations of Misclassification Are Insufficient to Demonstrate Commonality and Typicality According to California Court of...

The California Court of Appeal for the Fourth District held that misclassification alone does not establish liability for overtime violations, and, thus, the fact that members of a putative class were classified as exempt was...more

Could A Proposed Federal Law Solve The Misclassification Riddle?

by Fisher Phillips on

For years, businesses have struggled with properly identifying workers as either independent contractors or W-2 employees. The hundreds of thousands of jobs created by the gig economy have complicated matters even further....more

Fifth Circuit Ruling Emphasizes Importance of Establishing Factual Basis for Compensating Employees Using Fluctuating Workweek...

by Jackson Walker on

On August 4, 2017, the United States Court of Appeals for the Fifth Circuit issued an opinion in Hills v. Entergy Operations, Inc., addressing what it called the “tricky” and often “perplexing” task of determining a salaried...more

NC Legislative Update - Special Session - August 2017

by Nexsen Pruet, PLLC on

Last Week - Lawmakers reconvened last Thursday for two sessions in one day. Pursuant to the June 30th adjournment resolution, lawmakers were to reconvene August 3rd at 12:00 noon, in order to address veto overrides,...more

Employers Beware: Fifth Circuit Narrows “Fluctuating” Workweek

by Reed Smith on

In a recent Wage and Hour development, the Fifth Circuit held that the “fluctuating workweek method,” which allows employers to decrease their liability for overtime payments in situations where they misclassify exempt...more

Is My Noncompete With an Independent Contractor Enforceable?

by Fisher Phillips on

The Eight Circuit recently addressed this question in Ag Spectrum Co. v. Elder, Case No. 16-3113 (8th Cir. August 2, 2017). In that case, Ag Spectrum contracted with Vaughn Elder to work as an independent contractor. Elder...more

IT Companies and the Uber-ization of the Workforce

by Fisher Phillips on

With the rise of the gig economy, IT companies are taking the approach many employers in the gig economy have taken in structuring their workforce. In an industry where full-time and part-time employees cohabit in the same...more

Will Dealerships And Third-Party Detailers Continue To Face Increased DOL Scrutiny?

by Fisher Phillips on

During the Obama administration, the U.S. Department of Labor (DOL) placed special emphasis on scrutinizing the alleged misclassification of independent contractors and joint employer relationships. Dealerships were notably...more

July 2017: The Top 12 Labor And Employment Law Stories

by Fisher Phillips on

It’s hard to keep up with all the recent changes to labor and employment law. While the law always seems to evolve at a rapid pace, there have been an unprecedented number of changes each month in 2017. July was no different,...more

Florida Court Denies Conditional Certification of FLSA Case Involving Restaurant Staff

by BakerHostetler on

As we’ve noted before, many courts have applied the standard for conditional certification so leniently that in places the requirement of a group of “similarly situated” employees under the FLSA has all but disappeared. So,...more

In what direction will Uber drive SA labour laws?

by Hogan Lovells on

The recent CCMA ruling in favour of Uber drivers now heads to the Labour Court. This is an extremely important case as South African labour laws for the first time now come "Head-to-Bot" with the fourth industrial revolution....more

Worker Classification Update

by Clark Hill PLC on

On July 20, 2017, the Internal Revenue Service ("IRS") issued a reminder for small businesses on the importance of correctly classifying workers as employees or independent contractors. Employers failing to do this correctly...more

Certification Of Alleged Misclassified Bakery Distributors Denied Due To Predominance Of Individualized Issues

by Jackson Lewis P.C. on

Class certification would have been granted in Soares v. Flowers Foods, Inc., 3:15-cv-04918 (N.D. Cal., June 28, 2017), but for the allegedly misclassified independent contractors’ decision to deliver, or not deliver, the...more

Arbitrator Must Rule on Independent Contractor Status of Uber Drivers in Class-Action Notwithstanding NLRA Bar to Class Action...

by Franczek Radelet P.C. on

Last week, a U.S. District Court Judge in Illinois ruled that an arbitration agreement signed by an Uber driver required arbitration on the issue of whether Uber drivers are employees or independent contractors before the...more

Where Do Fitness Instructors "Fit" In The Current Worker Classification System?

by Fox Rothschild LLP on

They say location is everything in business. How about classification of workers? In certain industries, workers have a unique combination of specified skills and relative freedom to do their job. ...more

Landing a New Gig: Lessons for the “On Demand” Economy

In the past few years, the American workforce has shifted dramatically. By some estimates, as many as 53 million Americans are now self-employed. Many of them work in the “gig” or “on demand” economy, which has emerged as the...more

Update: NYC Adopts New Rules Implementing Freelance Law

Earlier this year, we reported that New York City adopted The Establishing Protections for Freelance Workers Act, also known as the Freelance Isn’t Free Act, (the “Freelance Law”). As explained in our prior blog, under the...more

Oil Energy FLSA Exemption Collective Action Settles: The Right Move By The Employer 

by Fox Rothschild LLP on

No industry is immune to FLSA collective actions and the energy industry is seeing a significant uptick in these actions. In this regard, a class of workers employed by an oil field services company has just agreed to a $2.1...more

Court Says Uber Drivers Can Proceed With National Misclassification Class Action

by Fisher Phillips on

A federal court judge in North Carolina last week granted permission to a group of Uber drivers challenging the company’s classification structure to band together and proceed with a class action lawsuit against the...more

Department of Labor Rolls Back the Liberal Interpretation of Who is and Who is Not an Employee

by Jaburg Wilk on

Recently the hot topic in employment law is the widespread misclassification of employees as independent contractors. The courts and the Department of Labor (DOL) have steadily turned up the heat on employers who misclassify...more

Need for Individual Scrutiny Kills FLSA Collective Action – That’s The Cure For This Disease

by Fox Rothschild LLP on

I have blogged on this topic many times but I never tire of it. What is the way to defeat a class action? The magic bullet? The answer? Too much individual scrutiny is needed! Another Judge has proven me right on this. A...more

Taylor Review: A Review of the Review

by Reed Smith on

On 11 July 2017, the much-anticipated Taylor Review was published, with a speech by Matthew Taylor outlining his recommendations, followed by comments from Prime Minister Theresa May. The opening lines of the Review set out...more

The Square Peg and the Round Hole – W2 Driver or IC? Let the Judge (as the Jury) Finally Decide!

by Fisher Phillips on

GrubHub, the food delivery app, has been in a legal battle with a former delivery driver over the driver’s classification as an independent contractor since 2015. Initially filed as a class action in state court in San...more

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