Misclassification Independent Contractors

News & Analysis as of

New York Establishes a Super IC Misclassification-Plus Task Force

Yesterday, New York Governor Andrew Cuomo signed Executive Order No. 159 expanding the existing Joint Enforcement Task Force on Employee Misclassification into a Joint Enforcement Task Force on Worker Exploitation and...more

InterConnect FLASH! No. 55 - Disruptors Continue to Create Challenges for the Independent Contractor Business Model

Disruptors Continue to Create Challenges for the Independent Contractor Business Model - Our increasingly on-demand, technology-driven economy has been a petri dish for disruptive business models that are responsible...more

Gig Employer Heartburn: Challenge to GrubHub’s Classification System Continues

A putative class action case, alleging that online food delivery service GrubHub misclassified its drivers, has survived a motion to dismiss and will proceed in California federal court. Noting that GrubHub’s view of the...more

Classifying Independent Contractors and Employees – The $100 Million Question

Whether a service provider is correctly classified as an employee or an independent contractor has an important legal consequence: potential liability, both to misclassified employees and to regulators for fines. Many startup...more

June 2016 Independent Contractor Misclassification and Compliance News Update

The poster children of IC misclassification cases dominated the news in June: Uber, Lyft, GrubHub, FedEx, an exotic dance club, and a trucking transport company. It was not a good month for any of them, yet as we have...more

Maryland Employers Will Face Tougher Sanctions for Misclassifying Workers as Independent Contractors

The heightened focus on misclassification of workers as independent contractors should cause concern for employers. At least 30 states have partnered with the federal government to target worker misclassification, with...more

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

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

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

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

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

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

Uber Settlement Under Fire, As Named Plaintiff, Others Object

In a development one does not see everyday, named Plaintiff Douglas O’Connor has submitted a declaration blasting the settlement reached in the litigation bearing his name: O’Connor et al. v. Uber Technologies, Case No....more

Uber Class Action Lawsuit. Are Drivers Eligible for Workers’ Compensation Benefits?

Recently, the ride-sharing program, Uber decided to settle two major class-actions lawsuits, filed in California and Massachusetts. These cases will help define how the company classifies drivers in the future....more

Sharing is caring: Are Uber, Lyft drivers independent contractors?

Whether workers are properly classified as employees or independent contractors has been an increasingly hot topic in discussions about the American labor market. Independent contractors are deemed to own their own business,...more

Be Uber Prepared To Do Business In The Gig Economy

Until recently, the word “gig” had two common meanings: - ..A live music performance; and - ..A long trident used to hunt swamp-dwelling amphibians - However, a noted linguist recently crowned “gig” as the...more

You might be an Employee if….

On Friday, I used the phrase “Uber Settlement” as (maybe) click-bait to introduce an important, but hidden, issue facing Irish and Northern Irish companies operating in the US. As I noted in that post, many Irish and Northern...more

Employment Law - May 2016

California Increases Amount Paid for Family, Disability Leave - Why it matters - In the latest changes to California employment law, Governor Jerry Brown signed an amendment increasing the payment to employees for...more

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