Misclassification The United States Department of Labor

News & Analysis as of

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

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

Federal Guidance on Independent Contractors on Its Way This Summer

Recently, Wage and Hour Division (WHD) Administrator David Weil announced that the DOL would issue an “administrator interpretation” letter early this summer on how an employer can best address whether an individual qualifies...more

Fenwick Employment Brief - June 2015

Employer’s Motive, Not Confirmed Knowledge Of Accommodation Need, Is Basis Of Religious Accommodation Violation - Federal anti-discrimination laws (“Title VII”) prohibit an employer from refusing to hire a candidate to...more

Uber Relieved or Uber Mad? What Does the Recent UBER Misclassification Ruling Mean for Employers?

Last week, the California Labor Commissioner ruled that Uber driver Barbara Berwick was an employee and not an independent contractor, as Uber classifies all its drivers. The ruling was based on the Labor Commissioner’s...more

Uber Independent Contractor Decision Will Have Broad Consequences For Employers In California

Earlier today, Uber Technologies, Inc. announced the decision of the California Department of Labor, Division of Labor Standards Enforcement (DLSE) finding that a driver was an employee, not an independent contractor. The...more

DOL To Issue Independent Contractor Guidance

According to an Article in Law360, on June 5, 2015, David Weil, Administrator of the Department of Labor’s Wage and Hour Division, stated that his Office is preparing to release guidance addressing how to assess whether a...more

California Court Rejects Alleged Joint Employers' "It Wasn't Me" Defense to Worker Misclassification Claims

Notwithstanding—and perhaps because of—the emergence of the so-called "sharing economy" and its proliferation of disruptive new business models, as well as calls to re-examine the traditional and familiar employee versus...more

Rhode Island and Federal Officials Agree to Cooperate in Investigating Independent Contractor Misclassification

On May 7, 2015, the Wage and Hour Division (WHD) of the U.S. Department of Labor (DOL) and the Rhode Island Department of Labor and Training (RI-DLT) entered into a Memorandum of Understanding (MOU) in which they agreed to...more

Third Circuit Upholds the Motor Carrier Exemption for Drivers Who Did Not, But Reasonably Could Have Been Expected to, Cross State...

Are drivers of a motor carrier who rarely or never drive the carrier's interstate routes covered by the motor carrier exemption of the Fair Labor Standards Act?  Yes, according to the U.S. Court of Appeals for the Third...more

Employee Misclassification in the Entertainment Industry

Employee misclassification is one of the leading labor abuses in the country. In fact, in recent years, both the Internal Revenue Service and the U.S. Department of Labor have launched a misclassification initiative to combat...more

The Inside Scoop: Top 10 Employer Mistakes According to the Solicitor of Labor

Meeting in our nation's capital and having a strong public policy group have some definite perks, such as getting the inside scoop on employment law trends directly from the Department of Labor's Solicitor. During a recent...more

Employers Beware! Government Agencies Are Out To Bust You For Misclassifying Your Employees As Independent Contractors

Both federal and state labor authorities are hot on the trail of companies who hire employees and call them “independent contractors.” The United States Department of Labor (DOL) has entered into a Memorandum of...more

April 2015 Independent Contractor Compliance and Misclassification News Update

The leading news in the area of independent contractor compliance and misclassification in April 2015 is the settlement by Macy’s and its logistics company in New Jersey with the delivery drivers and their helpers used by...more

Affordable Care Act Presents New Risks to Employers Who Misclassify Workers

As our readers know, federal and state departments of labor have intensified their scrutiny of independent contractor arrangements and are coordinating with the federal and state taxing authorities when misclassifications are...more

Wisconsin Joins DOL’s Worker Misclassification Initiative

On January 20, 2015, the U.S. Department of Labor announced that Wisconsin has also joined the growing list of states that have entered into formal agreements with the DOL to share information about worker misclassification. ...more

The 2016 Federal Budget: Targeting Independent Contractor Misclassification as Part of the “Fissured Workplace”

The President released his Fiscal Year 2016 Budget today, February 2, 2015. In furtherance of the President’s budget request, the Labor Department’s Wage and Hour Division provided a 32-page budget justification to Congress...more

January 2015 Independent Contractor Compliance and Misclassification Update

JANITORIAL FRANCHISE COMPANY SETTLES ITS APPEAL OF $4.8 MILLION JUDGMENT IN FAVOR OF MISCLASSIFIED CUSTODIANS. Coverall North America Inc. settled the independent contractor misclassification case filed against it by a class...more

NJ Supreme Court Advises Courts to Follow NJDOL Test for Determining Employee vs. Independent Contractor Status for Wage Disputes

In Hargrove v. Sleepy’s LLC, the New Jersey Supreme Court recently held that the legal test for determining employee status under New Jersey unemployment compensation laws should also be used to determine employee status in...more

Independent Contractor . . . or Not? DOL and Wisconsin DWD Team Up to Reduce Employee Misclassification

On January 20, 2015, the U.S. Department of Labor (DOL) announced that Wisconsin had become the latest state to join the “Misclassification Initiative,” which is designed to protect the rights of employees “by preventing...more

New Jersey Clarifies Independent Contractor Classification Test

The New Jersey Supreme Court’s decision defines a test that applies to employment classification disputes under the state’s Wage Payment Law and Wage and Hour Law....more

Wondering what the Department of Labor will be doing this year? Here's what the agency says:

?According to the U.S. Department of Labor (DOL), it plans to increase its emphasis on audits and prosecutions of minimum wage and overtime violations, to increase its scrutiny of independent contractor classifications, and...more

Florida Joins U.S. DOL’s Worker Misclassification Initiative

On January 13, 2015, the U.S. Department of Labor announced that Florida joined the ranks of states that have entered into formal agreements with the DOL to share information about worker misclassification. Under the terms...more

Misclassification Initiatives Spread As Florida Signs Formal Pact with DOL

On January 13, 2015, the U.S. Department of Labor’s (DOL) Wage and Hour Division and the Florida Department of Revenue’s General Tax Administration (FDOR) entered into a memorandum of understanding (MOU) in which they agreed...more

U.S. Labor Department and Florida Department of Revenue Team Up to Prevent Worker Misclassification

Now more than ever, Florida employers should ensure they are properly classifying their workers. The U.S. Department of Labor and the Florida Department of Revenue have announced an agreement between the two agencies to...more

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