Misclassification Wage and Hour

News & Analysis as of

Moving Exempt Employees to Non-Exempt Status [Wage & Hour FAQs]

We discuss the misclassification of non-exempt employees regularly here on the blog and in our presentations at conferences and webinars, but a reader of the blog wrote me before the holiday weekend to ask about the reverse...more

New GAO Report on Contingent Workforce Shows 85% of Independent Contractors Are “Content with Their Employment Type”

A comprehensive government report on the contingent workforce made public two days ago revealed surprising data about independent contractors, finding that 85% of independent contractors “appeared content with their...more

Third Circuit Upholds the Motor Carrier Exemption for Drivers Who Did Not, But Reasonably Could Have Been Expected to, Cross State...

Are drivers of a motor carrier who rarely or never drive the carrier's interstate routes covered by the motor carrier exemption of the Fair Labor Standards Act?  Yes, according to the U.S. Court of Appeals for the Third...more

Wage-Hour Audits: Lessons Learned From Chipotle’s Heartburn

Beloved burrito-maker Chipotle Mexican Grill has found itself in a situation messier than the finger foods that brought the company more than $4 billion in revenue last year. A magistrate judge in Scott v. Chipotle Mexican...more

Avon Calling: Employees Allege Overtime Exemption Misclassification

Avon categorizes all of its district service managers (DSMs) under the “administrative” exception of California law that requires employers to pay overtime wages. DSMs are the Avon employees who recruit and train the...more

Employee Misclassification in the Entertainment Industry

Employee misclassification is one of the leading labor abuses in the country. In fact, in recent years, both the Internal Revenue Service and the U.S. Department of Labor have launched a misclassification initiative to combat...more

Multi-Agency Investigation Successfully Targets Arizona and Utah Construction Companies’ Misclassification of Employees

Sixteen Arizona and Utah companies accused of misclassifying more than 1,000 construction workers agreed to pay $700,000 in back wages and penalties after a multi-year, multi-agency investigation led to consent judgments,...more

April 2015 Independent Contractor Compliance and Misclassification News Update

The leading news in the area of independent contractor compliance and misclassification in April 2015 is the settlement by Macy’s and its logistics company in New Jersey with the delivery drivers and their helpers used by...more

The 2015 White Paper on Independent Contractor Misclassification: How Companies Can Minimize the Risks

In This Issue: - Introduction - Independent Contractor Misclassification: How It Has Arisen ..The Economic and Business Advantages of Using Independent Contractors ..Lax Enforcement and...more

March 2015 Independent Contractor Compliance and Misclassification News Update

This past month’s headline developments involve three major developments in the area of independent contractor (IC) misclassification. The first case involves a large department store that agreed to pay most of the costs of...more

Uber, Lyft Decisions Highlight Difficulty of Classifying Workers in the Modern Economy

“The test the California courts have developed over the 20th Century for classifying workers isn’t very helpful in addressing . . . 21st Century problem[s].” So concluded the court in Cotter v. Lyft, Inc., one of two...more

2015 Employment Law Issues Tournament: Second Round Results and Recaps

If you thought the Round of 64 was wild, then wait until you see what happened during the second round. Let’s just say that some shocking upsets left many a bracket busted wide open....more

“Something We Cannot Do”: Mies Confirms Limited Review of Class Certification Orders

In Mies v. Sephora U.S.A., Inc., No. A139410, published February 26, 2015 (Mies), the California Court of Appeal, First Appellate District held that a trial court’s broad discretion to rule on class certification encompasses...more

Federal Wage Claims? That's The Easy Part!

Retailers are all too familiar with collective actions filed under the Fair Labor Standards Act (FLSA) making claims for unpaid overtime based on alleged misclassification of employees as exempt, working off the clock, or not...more

February 2015 Independent Contractor Compliance and Misclassification Update

This month’s headline developments are a set of cases reported in February dealing with class action IC misclassification claims: the highest court in a key state agreeing to decide whether a worker-friendly test should be...more

Cook County's New Wage-Theft Ordinance

Cook County recently increased the stakes on wage and hour compliance for employers that transact business with or receive tax incentives from the County. After May 1, 2015, Cook County may refuse to allow businesses to...more

Employee or Independent Contractor: Why It Matters?

Every employer eventually tackles the question of whether its labor force is composed of employees, independent contractors, or a combination of both. The appeal of the independent contractor classification is understandable...more

Even an Exotic Dance Club (a.k.a. Strip Joint) Can Comply with Independent Contractor Laws – And Avoid or Defend Against Class...

A number of our blog posts since October 2010, including our monthly updates beginning in November 2012, have included reports on class action lawsuits by exotic dancers against strip clubs. This industry has, by far, the...more

The 2016 Federal Budget: Targeting Independent Contractor Misclassification as Part of the “Fissured Workplace”

The President released his Fiscal Year 2016 Budget today, February 2, 2015. In furtherance of the President’s budget request, the Labor Department’s Wage and Hour Division provided a 32-page budget justification to Congress...more

January 2015 Independent Contractor Compliance and Misclassification Update

JANITORIAL FRANCHISE COMPANY SETTLES ITS APPEAL OF $4.8 MILLION JUDGMENT IN FAVOR OF MISCLASSIFIED CUSTODIANS. Coverall North America Inc. settled the independent contractor misclassification case filed against it by a class...more

Exotic Dancers’ Class Action Employment Suit Stays Alive in California

Salazar v. Victory Entertainment, Inc., No. B249888 (December 15, 2014): In a recent decision, a California Court of Appeal revived a class action lawsuit brought by a group of exotic dancers who claimed that they were...more

Trial Court Should Have Certified Class Claims Of Managerial Employees

Roberto Martinez and three other current or former employees of Joe’s Crab Shack (“JCS”) filed this putative class action asserting that they and similarly situated salaried managerial employees had been misclassified as...more

NJ Supreme Court Advises Courts to Follow NJDOL Test for Determining Employee vs. Independent Contractor Status for Wage Disputes

In Hargrove v. Sleepy’s LLC, the New Jersey Supreme Court recently held that the legal test for determining employee status under New Jersey unemployment compensation laws should also be used to determine employee status in...more

NJ Supreme Court Sets Tougher Test for Independent Contractor Classification

On January 14, 2015, the New Jersey Supreme Court (the Court) ruled that when determining whether an individual is an employee or independent contractor under the New Jersey wage laws—specifically, the NJ Wage Payment Law...more

N.J. Wage and Hour Test: Contractor, Employee Distinction No Longer Relevant

In Hargrove v. Sleepy’s, the New Jersey Supreme Court determined, for the purposes of New Jersey’s wage laws (and overtime), that the so-called “ABC test” (derived from New Jersey’s Employment Compensation Act) would govern...more

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