Misclassification The United States Department of Labor

News & Analysis as of

Independent Contractors: Can You Still Use Them?

A while back, I got this question: Can we still use independent contractors for our business? This answer is certainly yes. But you wouldn’t know it from all the headlines of late....more

December 2015 / January 2016 Independent Contractor Compliance and Misclassification News Update

This Update covers the two-month period of December 2015 and January 2016. The headnote for this period is: don’t classify drivers as ICs unless you do it right! Eight of the nine cases reported below involve drivers....more

Starting Off The New Year Right

As we all begin 2016 with resolutions for a better year, it is also a prime time to review your company’s policies to help avoid employment-related minefields. In addition to certain new obligations beginning this year,...more

Employer Beware: Be Prepared for New Labor Regulations Coming in 2016

The Fair Labor Standards Act (“FLSA”) is quite possibly the labor law that employers grapple with more than any other. The regulations can be murky at best when actually applied and the price tag for running afoul of the...more

Trying To Avoid Liability by Outsourcing Labor to Staffing Companies? It May Not Work As Well As You Think!

Joint employers beware… A recent case settled by the United States Department of Labor (DOL) Wage and Hour Division highlights how companies who outsource labor to staffing agencies may want to take precautions to ensure they...more

The Department of Labor Takes a Stance in Employee Misclassification Cases

In a recent article, I warned all employers that government agencies are out to bust them for misclassifying their employees as independent contractors. The prior article discussed the efforts made by the United States...more

The Many Pitfalls of Worker Misclassification

Worker classification is an area of major concern for domestic and international employers of all sizes. Our Labor and Employment Group recently alerted you to significant regulatory action by the US Department of Labor...more

5 Things to Know About the U.S. Department of Labor’s Proposed Changes to the Fair Labor Standards Act

On June 30, 2015, the United States Department of Labor (“DOL”) released proposed regulations that would modify certain provisions of the Fair Labor Standards Act (“FLSA”), including the so-called “white collar exemptions.” ...more

Is The Classification Of Your Workers Putting Your Business At Risk?

Businesses have a lot at stake in properly classifying their workers as either employees or independent contractors. The Rhode Island Department of Labor and Training has taken the position that “[t]he misclassification of...more

Wage And Hour Developments That Affect All California Employers

I. MINIMUM WAGE UPDATE: A. Federal and State Requirements - The current federal minimum wage is $7.25 per hour. This has been the federal minimum wage for the last six years, and although there are proposals to...more

The Death of the Individual Independent Contractor: A Growing Trend Points to an Uncertain Future

It should come as no surprise that the workplace environment is rapidly changing. In the past, many industries have routinely hired temporary or part time workers and called them independent contractors. After all, it is a...more

The Employment Law Authority - September/October 2015

On October 16, 2015, the U.S. Department of Homeland Security (DHS) released a notice of proposed rulemaking (NPRM) concerning new rules for extending the Optional Practical Training (OPT) program for international students...more

Employee Misclassification Continues to Make News

Just last month, GrubHub, DoorDash, and Caviar were sued in San Francisco Superior Court in lawsuits similar to those pending cases against Uber and Lyft. These three new lawsuits ask the hot-button question: are...more

Michael Kors and Versace Sued by Unpaid Interns

Earlier this month, approximately 100 former interns filed class action suits in New York state court against Michael Kors and Versace for allegedly classifying them as interns rather than employees....more

DOL Misclassification Guidance on Independent Contractors Could Affect Certain Nonimmigrant Visa Classifications

On July 15, 2015, the U.S. Department of Labor issued guidance to clarify when workers can be classified as independent contractors or employees under the Fair Labor Standards Act (FLSA). This Administrator’s Interpretation...more

Fenwick Employment Brief

Legislative Update - Governor Brown recently signed into state law the following employment law bills (among others): SB 358—Referred to as the California Fair Pay Act, this law is directed at closing the pay...more

Start Planning for the Worst While You Hope for the Best

For the past several months we have been updating you on the proposed changes to the Fair Labor Standards Act (FLSA) and the impact those changes could have on your workforce. The comment period for the proposed regulations...more

Supreme Court to Resolve Circuit Split on OT Pay for Car Dealerships?

As you have read in our blog over the years, the misclassification of employees as exempt is one of the primary claims in wage and hour litigation.  Misclassification claims can arise in many forms, including the...more

Beware Increased Worker Classification Audits

As many of you are aware, there has been a marked increase in the emphasis on worker misclassification, not only by the Internal Revenue Service and U.S. Department of Labor (DOL), but by states. The IRS and U.S. DOL have...more

CLIENT ALERT: Worker Misclassification

Continuing its focus on combating worker misclassification, the U.S. Department of Labor has awarded nearly $40 million in federal grants to 45 states and territories. The grants are designed to enhance unemployment insurance...more

What Employers Must Know About Wage and Hour Law

This year, according to a recent Syracuse University study, federal courts are on track to handle a record number of wage-and-hour lawsuits stemming from violations of the Fair Labor Standards Act (FLSA), which establishes...more

Hot Topics: Worker Classification Issues

Worker classification issues are popping up in the news a lot again. This is because the National Labor Relations Board (NLRB) is taking a more aggressive view on joint-employer standards under the National Labor Relations...more

DOL penalized for ‘bad faith’ conduct

The Department of Labor recently agreed to pay an employer $1.5 million for costs and attorneys’ fees it had incurred in a lawsuit filed by the DOL. The 5th Circuit Court of Appeals determined that the employer was entitled...more

The U.S. Department of Labor Strikes Again – Worker Misclassification is (Still) a Hot Topic

Continuing the trend of exposing companies who have misclassified workers, the U.S. Department of Labor (DOL) has persuaded its latest target, Halliburton Co., to pay $18.3 million to compensate employees for unpaid overtime....more

DOL Gets Reined In - Fifth Circuit Court of Appeals says the agency pushed too far in worker misclassification case

As most employers know, the United States Department of Labor (DOL), along with many other federal and state agencies such as the Equal Employment Opportunity Commission, has focused on pursuing employers for misclassifying...more

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