Wage and Hour Independent Contractors

News & Analysis as of

Latest Misclassification Settlement Fails To Lyft Sharing Economy Companies

Late last week, a federal court judge in California approved a settlement agreement whereby ride-sharing company Lyft agreed to pay $27 million to approximately 95,000 California drivers who alleged they were misclassified as...more

Spoiler Alert: Rulings Expected on Uber and Lyft Independent Contractor Settlements

Judges in California will likely soon issue rulings affecting two ride-sharing companies, Uber and Lyft. Those connected with the Lyft case will be pleased because it is expected that a federal district court judge in San...more

Managing the Employment Relationship in Ontario

What state-specific laws govern the employment relationship? The Employment Standards Act, 2000, sets out most of the minimum employment standards for provincially regulated workplaces in Ontario....more

Breaking: Conn. Supreme Court Clarifies ABC Test for Independent Contractors

I’m back with news of a relatively big decision today from the Connecticut Supreme Court. In the decision, the Court clarified an important question that the Connecticut Department of Labor had been pushing hard....more

Independent Contractor Standards Uncertain Despite New Administration

Seyfarth Synopsis: It remains to be seen whether the Trump administration will redirect its enforcement priorities away from independent contractor misclassification issues or curtail the applicable standards in the coming...more

FedEx Succeeds Again On Appeal of an NLRB Ruling on Independent Contractor Misclassification

In the past 2-1/2 years, FedEx has suffered through some appellate court setbacks in the area of independent contractor misclassification, beginning with a decision by the U.S. Court of Appeals for the Ninth Circuit in San...more

News from the Vermont State House - An analysis from DRM's Government & Public Affairs Team - March 2017

House Commerce Considers Independent Contractors, Again - Vermont's business community continues to plead with lawmakers to update the statute defining independent contractors, arguing that current law is costly and...more

2016 Massachusetts Employment Law Year In Review

2016 Massachusetts Employment Law Year in Review - From case law interpreting one of, if not, the most employee-friendly independent contractor statute in the country to Beacon Hill’s efforts to pass non-competition...more

February 2017 Independent Contractor Misclassification and Compliance News Update

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

UK: Court of Appeal Reconsiders Test to Determine "Worker" Status

The gig economy is expanding fast. Although it brings great benefits, such as flexibility for companies and individuals, it also has generated concerns regarding workplace protections and social inequalities. In the UK, the...more

Joint Employment: Are Your Subcontractors Leaving You at Risk?

In a recent article, we discussed steps taken by the U.S. Department of Labor ("USDOL") to crackdown on the rampant misclassification of employees as independent contractors. The USDOL effectively created a default rule that...more

Chris Lazarini Examines Employee v. Independent Contractor Issue

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

Fourth Circuit Decision Establishes New Six-Factor Test for Determining Joint Employment under the FLSA

On January 25, 2017, the U.S. Court of Appeals for the Fourth Circuit established a new six-factor test to determine whether two or more entities are joint employers for purposes of the Fair Labor Standards Act (“FLSA”). ...more

Fourth Circuit Offers New Test for Joint Employment under FLSA

The Fourth Circuit recently ruled that a general contractor was the joint employer of employees of its subcontractor for purposes of the Fair Labor Standards Act. Salinas v. Commercial Interiors, Inc. has broad implications...more

UK Employment Tribunal Rules that Individuals Working in the “Gig Economy” are Entitled to Paid Leave

An Employment Tribunal in the United Kingdom ruled that a bicycle courier for CitySprint, a delivery firm, was a worker rather than self-employed and therefore entitled to paid leave. This is the most recent decision in a...more

Sunset for day rates?

It is common, if not industry standard, for companies in oil and gas to utilize a "day rate" structure. For example, drillers may agree to pay a contractor $600/day per employee for certain services. That contractor will...more

Florida Court Rules Uber Drivers are Not Employees

In a somewhat surprising but positive development for gig companies, a Florida state appellate court ruled on February 1, 2017 that Uber drivers are independent contractors, NOT employees, and therefore not entitled to...more

Puerto Rico Issues Comprehensive Labor Law Reform

On January 26, 2017, Puerto Rico’s Governor, Ricardo Roselló, signed into law the Labor Transformation and Flexibility Act (the “Act”). The Act represents the first significant and comprehensive labor law reform to occur in...more

Is the USDOL Making it Easier for On-Demand Workers to Claim Misclassification?

The on-demand economy has certainly changed the way people provide and receive services. It may also be changing the way the government focuses its enforcement priorities. The U.S. Department of Labor (USDOL) issued...more

January 2017 Independent Contractor Misclassification and Compliance News Update

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

This is Lowe’s, Don’t Be Like Lowe’s: A Checklist For Employers

Have you ever bought an appliance from Lowe’s Home Centers and been told that you have to contact one of its “licensed installers” and setup a time for them to come to your house to install the appliance? Subsequently, when...more

‘Not Completely Disassociated’: 4th Circuit Creates New FLSA Joint Employer Test

On Jan. 25, 2017, in Salinas v. Commercial Interiors, Inc., the 4th Circuit created a brand-new test for joint employer liability under the Fair Labor Standards Act (FLSA). The 4th Circuit’s approach to FLSA joint employer...more

Uber Scores Victory Compelling Arbitration in Wage & Hour Misclassification Suit

Just a few days after being in the news and facing consumer boycotts for allegedly seeking to profit as a result of a taxi boycott of JFK International Airport related to President Trump’s immigration Executive Order, Uber...more

Latest "Gig Economy" Case: Courier Held to Be a Worker

In the latest in a string of cases concerning the employment status of those working in the “gig economy”, the Employment Tribunal in Dewhurst v City Sprint UK Ltd ET2202512/2016 considered whether a courier was a worker or a...more

Open for Business: Puerto Rico Enacts Sweeping Labor Reform

Employer-friendly revisions to attract new businesses and facilitate operations for existing enterprises signals a new era of labor flexibility in Puerto Rico. On January 26, 2017, weeks after being sworn in as the...more

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