News & Analysis as of

$4.5 million wage settlement for Pa. and WVa. workers in oil and natural gas industry

On Tuesday, December 9, 2014, the U.S. Department of Labor (DOL) announced that it has reached agreement with numerous employers in the oil and natural gas industry in Pennsylvania and West Virginia to provide 5,310 workers...more

Aggressive FLSA Enforcement May Now Mean Jail Time

The recent arrest of a New York restaurant owner for failing to pay her employees minimum wage and overtime pay highlights the aggressive efforts currently used to enforce employment laws like the Fair Labor Standards Act...more

November 2014 Independent Contractor Compliance and Misclassification Update

This month’s headline developments are two independent contractor misclassification class action lawsuits: one was filed in New York against a Silicon Valley giant, Google Inc., and the second was filed in California against...more

Independent No More: The Crackdown on the Use of Independent Contractors

For years, many employers have tried to reduce their tax burdens by treating persons who perform services for them as individual contractors as opposed to employees and thereby reducing the payroll withholding taxes they must...more

DOL Refills States’ War Chests for Independent Contractor Misclassification Crackdown

The U.S. Department of Labor has awarded $10.2 million in grants to 19 states for continued independent contractor misclassification detection and enforcement. The grants are focused on unemployment insurance programs and,...more

New Hampshire Department of Labor and U.S. DOL Agree to Work Together Against Misclassification

The U.S. Department of Labor (“U.S. DOL”) and the New Hampshire Department of Labor recently signed a memorandum of understanding to share information regarding independent contractor misclassification. The agreement is part...more

Gentlemen’s Club Cannot Strip Dancers of Employee Status

We mentioned early last year that the U.S. Department of Labor intended to start cracking down on the (mis)classification of workers as independent contractors. All is not lost however, as we also recently discussed a New...more

$10.2 Million Awarded by DOL to Detect Worker Misclassification

Recently, the U.S. Department of Labor announced awards of $10,225,183 in grants to 19 states to implement or improve worker misclassification detection and enforcement initiatives in their unemployment insurance programs. ...more

Employment Law - Oct 2014 #3

DOL Grants Could Signal More Misclassification Actions - Why it matters: Employers have faced a tidal wave of litigation over the alleged misclassification of employees as independent contractors, with workers ranging...more

State and Federal Departments of Labor Joining Forces to Fight Employee Misclassification

Last month, major North Carolina newspapers ran a series of investigative reports alleging that construction companies with federal contracts routinely misclassify employees as independent contractors. While these articles...more

US Department of Labor to Aggressively Pursue Misclassification Matters

Employers have many ways of getting into trouble. We hope that after reading this you will avoid one of them; namely, misclassifying employees as independent contractors. ...more

Alabama Heightens Attention on Misclassified Employees

The U.S. Department of Labor continues its “misclassification initiative” by adding Alabama to its list of state partners. On October 2, 2014, Alabama Labor Commissioner Fitzgerald Washington and DOL regional director Wayne...more

But Wait . . . My Workers Are Independent Contractors, Right?

Following the U.S. Department of Labor’s recent release of its Memorandum of Understanding (“MOU”) with the Alabama Department of Labor, employers should not rest easy simply because they classify their workers as independent...more

Misclassification Initiatives Spread as Alabama Signs Formal Pact with DOL

On October 2, 2014, the Alabama Department of Labor and the U.S. Department of Labor (DOL) entered into a formal Memorandum of Understanding (MOU) or agreement to share information regarding independent contractor...more

U.S. Labor Department Awards $10.2 Million to 19 States to Help Finance Their Crackdown on Independent Contractor...

The news from Washington, D.C. yesterday is that the U.S. Department of Labor is funding 19 states’ efforts to crack down on businesses that unwittingly or intentionally fail to make unemployment contributions for individuals...more

Misclassification of Employees As Independent Contractors In the News

Media outlets throughout the country have recently reported that it appears there was little to no oversight to ensure contractors, which were working on projects receiving federal stimulus money, were not misclassifying...more

Learning From LinkedIn: More Big Name Employment Law Violations Showcase Need For Wage and Hour Compliance Training

I confess that up until the huge LinkedIn case last month, I had no idea what wage and hour training even is, or why anyone needed to take it. After all, it’s pretty simple, right? Pay nonexempt workers their regular wage for...more

Store to Pay Up to $6.5 Million for Misclassifying Workers

A national home-improvement store recently agreed to pay thousands of California workers as much as $6.5 million for improperly labeling them independent contractors (IC) instead of employees....more

U.S. Supreme Court Grants Review of Restrictions on Federal Agency Rulemaking in Mortgage Loan Officer Overtime Case

In our July 2013 alert, we reported on a federal appellate court ruling in Mortgage Bankers Association v. Harris. Mortgage Bankers Association challenged a U.S. Department of Labor (DOL) 2010 opinion letter in support of...more

Department of Labor to Revise Federal Regulations Interpreting the Right to Receive Overtime Pay under the Fair Labor Standards...

In a March 2014 Memorandum, President Obama directed the Department of Labor to “modernize and streamline” the regulations that dictate when an employer may lawfully designate an employee as exempt from overtime pay under the...more

Court Awards Fees And Costs Against USDOL

A Texas federal court has ordered the U.S. Labor Department to pay more than $560,000 in attorney's fees, paralegal fees, and travel expenses growing out of litigation under the federal Fair Labor Standards Act. USDOL...more

Restoring Overtime Pay for Working Americans Act: Senate Democrats Join President Obama’s War On FLSA Exemptions

Yesterday, Senate Democrats introduced a bill cited as the “Restoring Overtime Pay for Working Americans Act” (“the Act”), which would amend the Fair Labor Standards Act (“FLSA”) to make it more difficult for employers to...more

Another Example of Owner Liability for Unpaid Wages and Liquidated Damages for Employee Misclassification

Do you still think that business owners aren’t responsible for wage and hour law violations? Do you think that a court will only award liquidated damages where the violation is willful? Think again. Following an investigation...more

Interns Win One, Lose One, In Having Misclassification Cases Conditionally Certified In New York

There has been a great deal of coverage involving litigation by interns against various media and entertainment companies in New York. We won’t recount the many articles, blogs, and discussions about this issue. If you need a...more

Connecticut Congressman Sponsors “Payroll Fraud Prevention Act”

Readers of this blog will be aware that the misclassification of employees as independent contractors has been a major concern of state and federal authorities for several years. Employers don’t provide workers compensation...more

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