Wage and Hour Misclassification

News & Analysis as of

In Battle Over Employment Compensation, Second Circuit Affirms District Court Decision To Deny Arbitration

On interlocutory appeal, the Second Circuit affirmed a district court decision denying arbitration because a later-signed compensation agreement did not retroactively apply as it contravened the intent of a prior independent...more

What Employers Must Know About Wage and Hour Law

This year, according to a recent Syracuse University study, federal courts are on track to handle a record number of wage-and-hour lawsuits stemming from violations of the Fair Labor Standards Act (FLSA), which establishes...more

Special Note for Illinois Employers Regarding Tracking Hours

Tracking of hours for salaried/exempt employees has always been a questionable practice. In fact, the U.S. Department of Labor (“US DOL”) could arguably use such tracking as a factor suggesting that the individuals are really...more

Employee vs. Independent Contractor — A Decision Not To Be Taken Lightly

Most employers know that workers may be either employees or independent contractors. What many employers do not know is that misclassifying a worker into the wrong category could have significant financial consequences....more

Eleventh Circuit Joins Second Circuit in Holding the Unpaid Intern FLSA Classification Analysis Depends on the “Primary...

The Eleventh Circuit recently joined the Second Circuit in adopting the employer-friendly “primary beneficiary” test to determine whether unpaid interns are properly classified as employees under the FLSA. The Second...more

DOL Gets Reined In - Fifth Circuit Court of Appeals says the agency pushed too far in worker misclassification case

As most employers know, the United States Department of Labor (DOL), along with many other federal and state agencies such as the Equal Employment Opportunity Commission, has focused on pursuing employers for misclassifying...more

Eleventh Circuit Rejects DOL Test in Internship Collective Action

It is almost an axiom that the Fair Labor Standards Act, 29 U.S.C. §§ 201 et seq., passed in 1938, is out of date. Despite modest tweaks since the time it was enacted, a particularly dark time in the Great Depression, it is...more

DOL to Pay $1.5 Million to Employer for Bad Faith Investigation

In an interesting turn of events and what I’m sure will be gratifying for some employers, the Department of Labor has agreed to pay Gate Guard Services $1.5 million to settle claims involving the DOL’s overly aggressive and...more

Many Home Companionship Workers No Longer Exempt

Agencies and other third-party employers of live-in household employees and home companionship providers, take note: the long-delayed regulations reclassifying many of these workers as non-exempt employees entitled to minimum...more

The Risky Business of Wage & Hour

Wage and hour laws are complicated. They have lots of parts and sub-parts, and there are differences from state to state. Even the most sophisticated employers have compliance challenges. Smaller employers sometimes ignore...more

Employee Misclassification Goes Viral with the Introduction of On-Demand Start-Ups, but the DOL May Have Just Crashed the Server

The United States Department of Labor (DOL) administers and enforces the Fair Labor Standards Act (FLSA). The FLSA is the federal law commonly known for minimum wage, overtime pay and related recordkeeping requirements. The...more

Eleventh Circuit Adopts Second Circuit’s “Primary Beneficiary” Test for Unpaid Interns

On September 11, 2015, the Eleventh Circuit became the first appellate court to address the standard for lawful unpaid internships since the Second Circuit’s ruling in Glatt et al. v. Fox Searchlight Pictures, Inc. et al....more

All Over But the Penning: the California Legislature Completes its Work for 2015

The California Legislature adjourned its 2015 regular session early last Saturday morning. It is now up to Governor Brown to sign or veto the last of the Legislature’s 2015 work product. He has until Sunday, October 11, to...more

Uber Employee Classification Class Action Could Impact All Employers

From Payroll Taxes to Sick Leave Laws … Federal Ruling Could Be Game Changer for Sharing Economy - A federal judge’s decision last week to certify a class of California Uber drivers in their lawsuit claiming Uber has...more

Litigating California Wage & Hour and Labor Code Class Actions

We are excited to announce the 15th edition of Seyfarth Shaw’s publication Litigating California Wage & Hour and Labor Code Class Actions. As in previous editions, the publication discusses and analyzes the most commonly...more

Class Action Suits By Independent Contractors -- the Uber Class Certification Decision

In a closely-watched decision involving a challenge to the business model used by ride-hailing company Uber Technologies, Inc., a California federal judge agreed to certify a class of California drivers who claim to have been...more

[Event] Labor & Employment Law Update & Happy Hour - Sept. 16th, Costa Mesa, CA

Please join us for Sheppard Mullin's bi-annual Labor & Employment Law Update & Happy Hour. There have been significant developments in California labor and employment law this year. We will explain how these new developments...more

Uber Class Certification Decision

In a closely-watched decision involving a challenge to the business model used by ride-hailing company Uber Technologies, Inc., a California federal judge agreed to certify a class of California drivers who claim to have been...more

Labor Day Hot Topics

Happy Labor Day 2015! In the spirit of the day, we thought it fitting to reflect on the three, hot topics that have been dominating the labor and employment news this summer, and which are certain to impact employers and...more

August 2015 Independent Contractor Compliance and Misclassification News Update

August 2015 was not a vacation month for independent contractor cases. No less than seven major litigation events transpired this past month, highlighted by more of the same as well as some new developments. Several companies...more

California Employment Law Notes - September 2015

Newly Enacted California Statutes - The Word "Alien" Is Stricken From The California Labor Code - Section 1725 of the California Labor Code defines "alien" as "any person who is not a born or fully naturalized...more

“To Suffer Or Permit To Work” – That Is The Question!

On the heels of several cases involving worker misclassification, such as the FedEx decision reported upon in the PK Law newsletter, comes the U.S. Department of Labor Wage and Hour Division’s Administrator’s Interpretation...more

Gavel to Gavel: Looking for direction

Gov. Mary Fallin signed a bill May 8 designed to provide a comprehensive regulatory framework for Oklahoma’s ride-booking industry. The bill requires that Uber, Lyft and similar services run background checks on their...more

Employee or Independent Contractor? Uber Court Moves One Step Closer to Answering This Critical Question

Many of us perhaps have grown accustomed to riding Uber and enjoy the often significant discounts that their services may provide as compared to traditional taxi companies, and a recent case is certainly closely watched...more

Vermont Department of Labor and U.S. DOL Agree to Work Together Against Misclassification

On September 3, 2015 the U.S. Department of Labor (“U.S. DOL”) and the Vermont Department of Labor (“VDOL”) signed a three-year memorandum of understanding to share information and conduct joint investigations regarding...more

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