News & Analysis as of

Unpaid Overtime Misclassification

The War on Employee Misclassification: Will Trump Call a Cease Fire?

by LeClairRyan on

During its two terms, the Obama Administration declared war on misclassification of employees as independent contractors. The U.S. Department of Labor (DOL) issued additional guidance on the proper classification of workers....more

Federal Court Provides Roadmap For Misclassification Success – Sort Of

by Fisher Phillips on

Ruling In Favor Of Independent Contractor Status Provides Boost To Gig Economy - A federal appeals court in New York handed a massive victory to a car service enterprise yesterday, ruling that a group of workers...more

Sheppard Mullin Secures Major Victory for Chipotle in Nationwide Misclassification Action By Demonstrating Variations Among...

The Court’s opinion in Scott v. Chipotle Mexican Grill demonstrates how employers can successfully combat class action claims that employees were misclassified as exempt. The successful defense of the class certification...more

These Foolish Things – The Oddest Employment Issues of the Past Year

by Littler on

Even outside the Capital Beltway, this has been a strange year. Those of us who handle labor and employment issues everyday often think we’ve seen it all—only to be proven wrong time and again. As April Fools’ Day approaches,...more

February 2017 Independent Contractor Misclassification and Compliance News Update

by Pepper Hamilton LLP on

Four of the eight court cases we report on below in our February 2017 monthly update of IC misclassification cases involve Uber, and each of those cases were victories for the ride-sharing, on-demand company. Although none of...more

Chris Lazarini Examines Employee v. Independent Contractor Issue

by Bass, Berry & Sims PLC on

Bass, Berry & Sims attorney Chris Lazarini examined a case in which the plaintiff claimed to be an employee of Northwestern Mutual and therefore protected under New York's minimum wage and overtime laws; Northwestern argued...more

Third Circuit Affirms Rejection Of Class Arbitration Where Employment Agreement Was Silent On Whether Arbitration Could Proceed On...

by Carlton Fields on

Plaintiffs, former staffing managers of defendants’ international staffing agency, alleged that defendants misclassified them as overtime-exempt employees in violation of the Fair Labor Standards Act. Following earlier...more

January 2017 Independent Contractor Misclassification and Compliance News Update

by Pepper Hamilton LLP on

January was a busy month for independent contractor misclassification – and IC compliance. In addition to Lowe’s $2.85 million settlement with installers whom it classified as ICs, Lufthansa agreed to pay $1.1 million in...more

New Uber Ruling Reveals Another Costly IC Misclassification Exposure for On-Demand Companies

by Pepper Hamilton LLP on

Gig economy companies based on an independent contractor model beware. On December 14, 2016, a federal court in Pennsylvania denied a motion to dismiss an “on-call” wage claim in a class action lawsuit filed against Uber by...more

What Damages Can an Employee Recover in a Lawsuit from an Arizona Employer?

by Jaburg Wilk on

If an employee or former employee sues, they may be entitled to many different types of damages which could amount to a substantial amount. However, that is not always the case. The different kinds of damages an employee can...more

Your Own Agreements Can Be Your Worst Enemy in IC Misclassification Cases

by Pepper Hamilton LLP on

Companies that use independent contractors (ICs) typically require ICs to sign a contractor agreement prepared by the company. But, if it is drafted like the one reviewed in late September by the U.S. Court of Appeals for the...more

Federal Minimum Salary Increases for Exempt Workers Take Effect December 1, 2016

by Fenwick & West LLP on

If you have not audited your exempt employee pay practices for compliance with the federal Department of Labor’s rules announced earlier this year, you have just under two weeks to do so. Starting December 1, 2016, the...more

Still Looming – The Regulations Regarding Overtime Exemptions

by Garvey Schubert Barer on

When we last visited this topic, the proposed regulations revising the overtime exemptions were still very new. The regulations are due to go into effect on December 1 of this year. There has been legislation introduced to...more

October 2016 Independent Contractor Misclassification and Compliance News Update

by Pepper Hamilton LLP on

Our update for this past month is noteworthy for the fact that we report below on IC misclassification lawsuits plaguing some of the largest and most recognizable companies in the U.S. (like Uber, Amazon, and FedEx) as well...more

50 Days Until the New Overtime Rule Takes Effect: Ready Or Not?

Barring something completely unexpected, the new overtime rules—effectively setting a federal minimum wage of $913 per week ($47,476 per year) for most exempt executive, administrative, or professional employees—will take...more

Wage and Hour Compliance: 80% of Employers Likely Out of Compliance

by NAVEX Global on

The U.S. Department of Labor recently settled a lawsuit filed by the American Federation of Government Employees Local 12 for $7 million. The lawsuit, filed a decade ago, claimed that Labor Department employees had not been...more

Hope for Employers: Court Says Home Health Aides Can’t Bring Collective Action

by Akerman LLP - HR Defense on

Courts have been quick to allow one employee claiming to be due overtime to sue on behalf of others in the same job category by certifying a collective action, allowing that employee to represent the class and requiring the...more

6 Resources for Complying with New FLSA Overtime Rules

by NAVEX Global on

The sweeping new Fair Labor Standards Act (FLSA) regulations that go into effect December 1, 2016 will impact all organizations with exempt employees. That means nearly all organizations — and virtually all companies — must...more

Are you prepared for overtime regulations?

by McAfee & Taft on

On December 1, 2016, the U.S. Department of Labor’s new Fair Labor Standards Act overtime regulations will take effect. Millions of employees who are currently exempt will, for the first time, earn overtime for any hours...more

Employment Law Navigator – Week in Review: August 2016 #5

by Zelle LLP on

Last week, we were reminded of the impact of the Department of Labor’s Wage and Hour Division enforcement activities. The agency announced that National Freight, Inc. will pay more than $1,000,000 in back wages to 359 workers...more

100 Days Until the New Overtime Rule Takes Effect: Is Your Company Ready?

On December 1, 2016, the annual cost of classifying most executive, administrative, or professional employees as “exempt” from the overtime rules more than doubles ($23,660 to $47,476). Is your company ready for this change?...more

DOL Settles Its Employees’ Wage Claims

It should not come as a surprise to readers of this blog that the U.S. Department of Labor (“DOL”) likes to trumpet its successes in enforcing federal wage and hour laws. This month alone, the agency has issued several press...more

Emerging Labor & Employment Law Trends (Part 1)

by Reed Smith on

With summer 2016 almost behind us, employers should begin to plan for the major labor and employment law trends expected to emerge in the final quarter of the year and into 2017. In the first part of this two-part series, we...more

DOL's final rule increases minimum salary for overtime exemptions

by Kirton McConkie PC on

The Fair Labor Standards Act (FLSA) generally requires employers to pay employees at least the federal minimum wage and overtime compensation for all hours worked over 40 in a workweek. Overtime pay must be at least 1½ times...more

What you need to know about the new FLSA overtime rules

by Jaburg Wilk on

The U.S. Department of Labor recently announced that there will be significant changes to its overtime rules under the Fair Labor Standards Act (“FLSA”). These new rules are expected to affect over 4.2 million employees and...more

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