Right to Control Independent Contractors

News & Analysis as of

U.S. Department of Labor Offers New Insight on the Misclassification of Independent Contractors

As federal, state, and local governments have focused in recent years on what they have termed “wage theft,” the classification of workers as independent contractors has been the subject of agency audits and litigation...more

DOL Issues Guidance Reminding Employers That “Most Workers Are Employees”

On July 15, 2015, the U.S. Department of Labor (“DOL”) issued an important Administrator’s Interpretation discussing the misclassification of employees as independent contractors. Many companies engage independent...more

Do You Know Who Your Employees Are?

Employers are beginning to learn that they may have far more employees than they think. A driver for the ride sharing company Uber was considered an “employee” by the California Labor Commissioner’s Office earlier this month....more

FedEx Drivers: Employees or Independent Contractors? The Ninth Circuit Weighs in on California’s Murky “Right-to-Control” Test

In a closely watched case last year, the Ninth Circuit ruled that FedEx’s drivers are employees—not independent contractors—as a matter of law under California’s “right-to-control” test. Alexander v. FedEx Ground Package...more

Nevada Establishes Conclusive Presumption for Independent Contractor Status

In Terry v. Sapphire Gentlemen’s Club, 336 P.3d 951 (Nev. Oct. 30, 2014), the Nevada Supreme Court adopted the Fair Labor Standard Act (FLSA)’s “economic realities” test to determine whether workers can be classified as...more

Employers Beware! Government Agencies Are Out To Bust You For Misclassifying Your Employees As Independent Contractors

Both federal and state labor authorities are hot on the trail of companies who hire employees and call them “independent contractors.” The United States Department of Labor (DOL) has entered into a Memorandum of...more

Is it Any Surprise to Anyone that Uber and Lyft Drivers Are Employees?

Why is anyone surprised to learn that the judges hearing two class actions involving Uber and Lyft drivers in California are leaning towards holding that the drivers are employees, and not independent contractors? At the...more

NLRB Adopts New Test for Independent Contractor Misclassification, Applies it to Find FedEx Drivers are Employees Who Can Unionize

The NLRB has tossed a new vegetable into the enormous salad of independent contractor misclassification tests. As companies might expect, the new vegetable smells rotten. Companies who wish to analyze whether their...more

State Law Can Override Control Test for Employment

Past articles in this blog have discussed the control test for establishing an employment relationship as opposed to independent contractor status. Although government agencies such as the Department of Labor or IRS describe...more

Standard for Class Certification of Independent Contractors Clarified by California Supreme Court

In Ayala v. Antelope Valley Newspapers, the California Supreme Court held that the proper test for determining whether newspaper carriers could proceed as a class on the issue of their employment status was the employer’s...more

Employment Law Advisory for July 30,2013: "Independent Contractor" or "Employee" Turns on Company's Right to Control the Manner...

Companies use independent contractors, instead of employees, to perform certain functions for many different reasons. Often, companies find it easier in the short term to retain an “independent contractor” rather than to hire...more

Exotic Dancers Are Employees, Not Independent Contractors, Kansas Supreme Court Rules

In Milano’s v. Kansas Department of Labor, the Kansas Supreme Court determined that exotic dancers were employees, not independent contractors, for purposes of unemployment insurance....more

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