News & Analysis as of

“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

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

Supreme Court of New Jersey Rules on Test for Independent Contractors

On January 14, 2015, the Supreme Court of New Jersey decided which independent contractor classification test should be used in determining a person’s employment status under the New Jersey Wage Payment Law (WPL) and Wage and...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

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

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

Employer Properly Challenged CUIAB’s Determination That Worker Was Not An Independent Contractor

After leaving his job as a massage therapist at West Hollywood Community Health & Fitness Center (d/b/a “Voda Spa”), Mario Serban applied for unemployment benefits. The Employment Development Department sent Voda Spa a letter...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

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

New Jersey Supreme Court Adopts Restrictive Test for “Independent Contractor” Status

The New Jersey Supreme Court recently adopted a new test making it more difficult for New Jersey employers to classify workers as independent contractors. In a lawsuit brought by contract delivery drivers against a chain of...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

Don’t Sleep on this New Jersey Employers: State Supreme Court Adopts More Stringent Test to Claim Independent Contractor Status

Recently, in Hargrove v. Sleepy’s, LLC, the New Jersey Court issued a unanimous decision raising the bar for New Jersey employers seeking to classify individuals as independent contractors under New Jersey’s Wage Payment Law...more

Independent Contractor . . . or Not? DOL and Wisconsin DWD Team Up to Reduce Employee Misclassification

On January 20, 2015, the U.S. Department of Labor (DOL) announced that Wisconsin had become the latest state to join the “Misclassification Initiative,” which is designed to protect the rights of employees “by preventing...more

New Jersey Supreme Court Opens Door for More Challenges to Independent Contractor Classifications

On January 14, 2015, the New Jersey Supreme Court opened the door for a likely uptick in challenges to the classification of workers as independent contractors. Answering a question of law certified to it by the Third...more

New Jersey Supreme Court embraces worker-friendly test for determining employee or independent contractor status

Employers should note a recent decision from the Supreme Court of New Jersey regarding the proper test to apply when determining an individual’s status for purposes of the New Jersey wage and hour laws. The court chose to...more

New Jersey Adopts Onerous Test That Presumes Workers Are Employees (and Not Independent Contractors) For State Wage Law Purposes

In Hargrove v. Sleepy’s, LLC, No. 2015 WL 214382 (January 14, 2015), the New Jersey Supreme Court answered a certified question from the Third Circuit by holding that the “ABC” test, derived from the New Jersey Unemployment...more

NJ Supreme Court Clarifies Independent Contractor Standard under State Wage Laws

Last week, New Jersey’s highest court ruled in Hargrove v. Sleepy’s, LLC, No. A-70-12 (Jan. 14, 2015), that the so-called “ABC test” applies when determining whether a worker is an employee or independent contractor under the...more

New Jersey Clarifies Independent Contractor Classification Test

The New Jersey Supreme Court’s decision defines a test that applies to employment classification disputes under the state’s Wage Payment Law and Wage and Hour Law....more

Latest Scoop From New Jersey on Independent Contractor Misclassification May Cause Employers Brain Freeze

An ice cream parlor in Dania Beach, Florida, features The Original Kitchen Sink Sundae, which contains up to 30 scoops, plus chocolate syrup, marshmallows, nuts, whipped cream, and a variety of berries. Customers can choose...more

Florida Joins U.S. DOL’s Worker Misclassification Initiative

On January 13, 2015, the U.S. Department of Labor announced that Florida joined the ranks of states that have entered into formal agreements with the DOL to share information about worker misclassification. Under the terms...more

Misclassification Initiatives Spread As Florida Signs Formal Pact with DOL

On January 13, 2015, the U.S. Department of Labor’s (DOL) Wage and Hour Division and the Florida Department of Revenue’s General Tax Administration (FDOR) entered into a memorandum of understanding (MOU) in which they agreed...more

New Jersey Creates More Difficult Independent Contractor Test for State Wage Law Purposes

On Wednesday, the Supreme Court of New Jersey articulated the test to be used in determining whether a worker is an independent contractor or employee for purposes of the state’s Wage Payment Law and Wage and Hour Law. Any...more

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