Right to Control

News & Analysis as of

Louisiana Legislature Ensures Franchisees Are the Sole Employers of Their Workers

The Louisiana legislature recently passed Act 404 of the 2015 legislative session, clarifying that in most circumstances franchisees are the sole employers of their employees. The bill was signed by Governor Bobby Jindal on...more

Red Flags for Homebuilders Related to DOL's Latest Guidance on Independent Contractors

On July 15, 2015, the U.S. Department of Labor (DOL) issued an “Administrator’s Interpretation” (AI 2015-1) providing guidance on whether workers are employees or independent contractors under the Fair Labor Standards Act...more

NLRB Browning-Ferris Decision Lowers Threshold For Joint Employer Status Under NLRA

On August 27, 2015, in a long-awaited and 3-2 decision, the National Labor Relations Board announced a new, lowered standard for determining whether a business is a joint employer of a work force hired by a separate employer...more

NLRB Expands Joint Employer Coverage

On Thursday, the National Labor Relations Board overturned 30 years of precedent, significantly expanding its definition of joint employer coverage under the NLRA. This decision has wide implications, including possible...more

It’s Back To The Future with the NLRB’s new “Joint Employer” standard

On August 27, 2015, the US National Labor Relations Board (NLRB or Board) issued its long awaited decision in Browning-Ferris Industries of California (Browning-Ferris) and, not surprisingly, returned employers to a pre-1984...more

NLRB Again Upends Long-standing Precedent in Creating Broad New Joint-Employer Standard

On August 27, 2015, the National Labor Relations Board issued its highly anticipated decision in Browning-Ferris Industries of California. In the 3-2 decision, the Board majority modified the standard for determining whether...more

NLRB Adopts New Joint Employer Test: Companies That Kind of, Sort of, Maybe Someday Could Exercise Control Over Employees Can Be...

The NLRB dropped a major bomb on businesses in subcontracting, franchising, and temporary staffing relationships yesterday, adopting a new—very, very broad—definition of joint employment. In Browning-Ferris Industries of...more

NLRB Starts Down The Slippery Slope With Controversial New Joint Employer Ruling

In a 3-2 decision, the National Labor Relations Board (NLRB) announced yesterday a broad new standard for determining whether two businesses are “joint employers” for purposes of collective bargaining. Browning-Ferris...more

The NLRB’s “Radical” Joint Employer Decision Is The Biggest Win For Unions In Years

Yesterday, in Browning Ferris Industries of California, Inc., the National Labor Relations Board (NLRB) overruled 30 years of authority on the issue of joint employers. In a decision which two Board Members called the “most...more

UK Companies Must Maintain a PSC Register by January 2016

The Corporate & Financial Weekly Digest edition of October 17, 2014, discussed the Small Business, Enterprise and Employment Act 2015 (SBEE) and the potential impact the proposed transparency provisions will have on UK...more

En Banc Federal Circuit Defines The Rule Of Divided Infringement

On August 13, 2015, the Federal Circuit rendered what is now its second en banc ruling in Akamai Techs., Inc. v. Limelight Networks, Inc., expanding on the scope of what constitutes divided infringement under 35 U.S.C. §...more

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

Appellate Court Delivers for FedEx—Second Class Cert Denial Affirmed by Ninth Circuit

When an employer has a denial of class certification remanded by an appellate court, it has a reason to worry. And while the employer might breathe a sigh of relief when the district court on remand again denies class...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

New Technologies Test the Limits of the Duty to Preserve, Collect and Produce Information in Civil Discovery

While the question of whether specific records are within a party’s possession, custody or control has been heavily litigated for years, the digital revolution — with the advent of social media, cloud computing and mobile...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

Joint Employer Liability on the Rise

The Issue: Could my company be liable as a joint employer for Labor Code violations of our subsidiary or third-party staffing company?...more

Fissured Employment – the Government Has Set Its Sights on You

For centuries, businesses have used subcontracting arrangements, franchise agreements or otherwise contracted out the performance of some functions third parties. The business reasons for such actions are obvious: it allows...more

Testing the “Joint Employer” Waters

PK Law recently reported on the filing of a complaint by the General Counsel for the National Labor Relations Board (“NLRB”) against McDonald’s Corporation to the effect that McDonald’s was a “joint employer” with its...more

Employers Beware: Could the Generosity of Volunteers Result in a Perceived Employer-Employee Relationship?

The generosity of volunteers builds a link between employers and the community, which frequently proves critical to accomplishing community and philanthropic work during times of need. Often times, there is too much to be...more

Employers: CA Court of Appeal Rules On-Duty Rest Breaks Permitted

In late January, a California Court of Appeal issued a ruling in Augustus v. ABM Security Services, Inc., overturning a $90 million award against the company because ABM required its security guards to keep their radios and...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

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