News & Analysis as of

Misclassification Independent Contractors

Foley Hoag LLP

Massachusetts Supreme Judicial Court Rules 7-Eleven Franchisees Are Not Employees

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On September 5, 2024, the Massachusetts Supreme Judicial Court (“SJC”) ruled in Patel v. 7-Eleven that 7-Eleven franchisees are not employees of the franchisor under the independent contractor statute. The SJC looked beyond...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

Massachusetts Supreme Judicial Court Clarifies Franchisee vs. Employee Classification

In the ever-evolving landscape of employment law, a recent Massachusetts Supreme Judicial Court (SJC) opinion, Patel v. 7-Eleven, Inc., has shed light on a critical question: When is a franchisee considered an employee of the...more

Locke Lord LLP

Independent Contractor Misclassification Lawsuits Involve Record Label Artists, Imam, ‎and Recyclable Sorters: August 2024 IC...

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The legal developments in the area of independent contractor misclassification and compliance last month include cases against a record label company, an Islamic Center, and a waste recycling company. Lawsuits for IC...more

Cozen O'Connor

The State AG Report – 09.05.2024

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Here are curated AG and federal regulatory news stories highlighting key areas in which state and federal regulators’ decisions are having an impact across the US: •FTC and Florida AG Put the Brakes on Alleged “Trucking...more

Cozen O'Connor

IL AG Settles Employee Misclassification and Wage Theft Claims With Construction Company

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Illinois AG Kwame Raoul settled with TBJ Drywall & Taping, Inc. (TBJ), resolving allegations that the company misclassified employees and failed to pay overtime wages in violation of state labor and employment laws....more

Cozen O'Connor

NLRB and Michigan AG Partner to Protect Workers

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The NLRB and Michigan AG Dana Nessel entered into a one-year agreement to increase inter-agency cooperation to strengthen worker protections. The Memorandum of Understanding strengthens the agencies’ partnership in areas of...more

PilieroMazza PLLC

Call It What It Is: D.C. Cracks Down on Employee Misclassification in Construction

PilieroMazza PLLC on

Employee misclassification is an area of employment law that has steadily become a prominent subject of litigation in recent years. The decision of whether a specific worker is properly identified as an employee or...more

Locke Lord LLP

Flawed Independent Contractor Pay Protection Law Disappeared But Will Make ‎Reappearance in New York on August 28, 2024‎

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On June 12, 2024, the U.S. Department of the Treasury’s Office of Foreign Assets Control (“OFAC”) issued a new Determination Pursuant to Section 1 (a)(ii) of Executive Order 14071 (the “Determination”)‎ that prohibits U.S....more

Amundsen Davis LLC

California’s Supreme Court Upholds Proposition 22 Allowing Gig Workers To Be Classified As Independent Contractors

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On July 25, 2024, CaliforniaCalifornia’s Supreme Court issued a highly anticipated ruling that allows app-based rideshare and delivery companies to classify drivers as independent contractors instead of employees, if certain...more

Locke Lord LLP

Customer Service Companies Using Independent Contractor Business Model Risk ‎Misclassification Liability: July 2024 IC Legal News...

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Last month, two key legal developments in the area of independent contractor misclassification and compliance highlighted the risks posed to customer service companies that use an independent contractor business model. The...more

Cozen O'Connor

The State AG Report – 8.1.2024

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Here are curated AG and federal regulatory news stories highlighting key areas in which state and federal regulators’ decisions are having an impact across the US: •District of Columbia AG Secures Record $3.75 Million...more

Davis Wright Tremaine LLP

D.C. Attorney General Cracks Down on Worker Misclassification

D.C. businesses that utilize independent contractors would be well advised to review and revise their independent contractor relationships in light of an increased focus by the D.C. Office of the Attorney General ("OAG") on...more

Cozen O'Connor

District of Columbia AG Secures Record $3.75 Million Wage-Theft Settlement

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District of Columbia AG Brian Schwalb settled with contractors Power Design, Inc. (PDI) and John Moriarty & Associates of Virginia, LLC (JMA), along with multiple labor subcontractors, to resolve allegations that the...more

Jackson Lewis P.C.

How Construction Employers Can Avoid Common Wage & Hour Claims

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Employer wage and hour violations of the Fair Labor Standards Act (FLSA) and other applicable state laws are some of the most frequent in the construction industry. They are often the costliest an employer can make. However,...more

Locke Lord LLP

Jurors Disagree on Whether Ride Share Drivers Are Independent Contractors or ‎Employees: June 2024 IC Legal News Update ‎

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Lawyers representing ride share drivers have argued for years that their clients are being misclassified as independent contractors under federal and state laws. They have attained little success, however, obtaining...more

Fisher Phillips

SCOTUS to Ponder Proof in Wage Misclassification Case: 5 Steps for Employers to Comply with Overtime Exemption Rules

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What evidence does an employer need to show a court to prove it correctly classified employees as exempt from minimum wage and overtime pay? The Supreme Court announced on June 17 that it will address a disagreement among...more

Fisher Phillips

Uber and Lyft Settlement Provides New Precedent for the Gig Economy and Major Benefits for Massachusetts Drivers: Key Employer...

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Uber and Lyft just reached a $175 million settlement with Massachusetts state prosecutors that permits their drivers to stay classified as independent contractors – not employees – but entitles the drivers to significant...more

Amundsen Davis LLC

Challenges to Gig Worker Laws Are Spreading

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Several States and major U.S. Cities, including California, New York City and Seattle, have passed laws aimed at classifying “gig workers” as employees as opposed to independent contractors in recent years. Challenges to...more

Arnall Golden Gregory LLP

AGG Talks: Cross-Border Business Podcast - What Foreign Investors Need to Know About U.S. Independent Contractor Laws

In this episode, Mike Burke, AGG Corporate partner and co-chair of the firm’s International Initiative, is joined by Megan Mitchell, AGG Employment Law partner, to discuss the complexities of classifying independent...more

Locke Lord LLP

Industries Counteract Class Action Independent Contractor Misclassification Claims: May ‎‎2024 IC Legal News Update‎

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Class action independent contractor misclassification cases continue to be filed and most seem to settle, often for large sums, as we have reported in our blog posts on legal developments each month. But some industries have...more

Pillsbury - Propel

Don’t Be Fooled: Employers Cannot Circumvent Wage and Hour Rules by Classifying Workers as Contractors!

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Although companies may be tempted to classify workers as contractors to circumvent wage and hour rules, this is the classic example of penny-wise and pound foolish. Misclassification of employees as contractors can lead to...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

Minnesota Employment Legislative Update 2024, Part IV: The Aftermath of Minnesota’s Legislative Circus

May 20, 2024, marked the end of the legislative session for yet another historic and busy year for Minnesota’s legislature. Amidst endless shouting, a sprawling 1,400-plus-page omnibus bill, and ethical complaints, the...more

Carlton Fields

Federal Court Rejects Argument That Subsequent Opt-Out of Arbitration Clause Precluded Arbitration

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The U.S. District Court for the Northern District of Illinois has rejected an argument that opting out of arbitration clauses precluded arbitration under prior arbitration agreements in a dispute between Uber drivers and...more

Jackson Lewis P.C.

Minnesota’s Latest Legislative Session Update

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Minnesota’s legislature was busy providing new rules and obligations for employers. In addition to the changes in the Minnesota Human Rights Act (MHRA), Earned Sick and Safe Time (ESST), Paid Family and Medical Leave, and pay...more

Locke Lord LLP

Can You Cover Independent Contractors With Workers’ Compensation Insurance?

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We are frequently asked by businesses about workers’ compensation coverage for independent contractors. Clients ask us: Can our company cover independent contractors with workers’ compensation insurance? Is it safer for us if...more

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