News & Analysis as of

Misclassification Independent Contractors Wage and Hour

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

PilieroMazza PLLC

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

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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

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

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

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

Littler

Effective July 1, Minnesota Employers Face Increased Scrutiny and Possible Liability for Using Independent Contractors Versus...

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Governor Tim Walz has signed into law significant changes to Minnesota’s independent contractor and employment laws.  Effective July 1, all employers, as well as their owners, risk significantly increased penalties for...more

Amundsen Davis LLC

Motor Carriers Beware: Department of Labor Revises Classification of Independent Contractors Under Fair Labor Standards Act

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On January 10, 2024 the U.S. Department of Labor (DOL) published a final rule (29 CFR 795) revising the DOL’s guidance on how to analyze who is an employee or independent contractor under the Fair Labor Standards Act (FLSA)....more

Spilman Thomas & Battle, PLLC

Everything Old is New Again: The Department of Labor Returns to the Past with Independent Contractors

It has been said that if you wait long enough, everything comes back into fashion. This saying is true even for the U.S. Department of Labor (DOL), where on March 11, 2024, the DOL reverted back to the multifactor,...more

Williams Mullen

Top 10 Employment Compliance Pitfalls for Emerging Companies

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Whether you are a founder or a manager, growing a company from scratch is an exciting process. For most companies, this process will involve the hiring and management of employees at a rapid pace....more

Cranfill Sumner LLP

Exception for “Transportation Workers” Under the Federal Arbitration Act Grows Larger

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The courts will generally enforce employee arbitration agreements via the Federal Arbitration Act (“FAA”). However, a “transportation workers” exemption exists under the FAA. On April 12, 2024, the United States Supreme Court...more

Brownstein Hyatt Farber Schreck

Employer Whiplash: Federal Agencies Flip-Flop on Two Federal Employment Rules

While federal regulations and rules shift under new administrations frequently, recent events related to two important employment rules mean they revert to prior versions, potentially exposing employers to legal liability if...more

Locke Lord LLP

Why Was a Carpenter Misclassified as Independent Contractor But a Truck Cleaner Was ‎Not? March 2024 IC Legal News Update

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Two court cases we summarize below, decided in March 2024, demonstrate that while some companies may prevail in an IC misclassification lawsuit, others do not. Why? As a starting point, the legal test for IC status under the...more

Alston & Bird

Class Action & MDL Roundup 2023 Q4 - Not All Cases Survive and Advance

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Welcome to the Class Action & MDL Roundup, our quarterly review of decisions and settlements in the class action arena. In this edition, student-athletes win an NIL round, Canadians in California isn’t personal...more

Levenfeld Pearlstein, LLC

Are Your Workers Independent Contractors or Employees: A New DOL Rule Aims to Help Employers Answer That Question

The U.S. Department of Labor’s (DOL) Wage and Hour Division updated its regulation concerning Employee or Independent Contractor Classification Under the Fair Labor Standard Act, with changes effective March 11, 2024. The...more

Benesch

Ejected! California District Court Dismisses Trucking Industry’s New AB5 Challenge

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As March Madness gets underway, a California federal judge has called a flagrant foul and ejected the trucking industry from its ongoing battle to challenge Assembly Bill No. 5 (“AB5”)....more

Sands Anderson PC

Understanding the New Rules of Independent Contractor Classification Law

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There are few areas in employment law that remain in a greater state of flux than the question of who a business can properly classify as an independent contractor.  The differences between federal and state law can make the...more

Gray Reed

More Guidance on Worker Classification for the Energy Industry

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This post is a summary of a more detailed Client Alert prepared by Gray Reed’s labor and employment practice group. Recall our recent post on the Department of Labor’s new “Economic Realities Test” for classifying...more

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