News & Analysis as of

Wage and Hour Misclassification

Locke Lord LLP

Independent Contractor Misclassification Lawsuits Involve Record Label Artists, Imam, ‎and Recyclable Sorters: August 2024 IC...

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The legal developments in the area of independent contractor misclassification and compliance last month include cases against a record label company, an Islamic Center, and a waste recycling company. Lawsuits for IC...more

Fisher Phillips

Is Your AI Prompt Engineer Exempt From Overtime Pay? An Employer’s 5-Step Guide to Avoiding Misclassification Mistakes

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As the AI revolution takes hold, employers are hiring for jobs we never imagined just a few years ago. This may leave you in the dark when trying to figure out if your new hires, including Prompt Engineers, will truly meet...more

PilieroMazza PLLC

Call It What It Is: D.C. Cracks Down on Employee Misclassification in Construction

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Employee misclassification is an area of employment law that has steadily become a prominent subject of litigation in recent years. The decision of whether a specific worker is properly identified as an employee or...more

Fisher Phillips

Headed to Overtime? 3 Tips to Tackle the Higher Salary Threshold for College Coaches and Athletics Staff

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Colleges and universities are feeling the heat after recent increases to the salary threshold for employees to be exempt from overtime pay under federal wage and hour law. The new rules may have significant implications for...more

Fisher Phillips

Nursing Facilities Ordered to Pay $36M in Overtime Suit: 9 Wage and Hour Tips for Healthcare Employers

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A group of nursing facilities in Pennsylvania was recently ordered to pay a whopping $36 million in overtime pay and damages to workers who claimed their employers deliberately paid them less than they actually earned. After...more

Locke Lord LLP

Flawed Independent Contractor Pay Protection Law Disappeared But Will Make ‎Reappearance in New York on August 28, 2024‎

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On June 12, 2024, the U.S. Department of the Treasury’s Office of Foreign Assets Control (“OFAC”) issued a new Determination Pursuant to Section 1 (a)(ii) of Executive Order 14071 (the “Determination”)‎ that prohibits U.S....more

Parker Poe Adams & Bernstein LLP

First Circuit Reminds Employers That Inside Sales Positions Are Non-Exempt

We frequently encounter situations where employers classify their salesforce that primarily sells through telephone and internet means as salaried exempt employees, primarily for purposes of overtime and minimum wage payment...more

Amundsen Davis LLC

California’s Supreme Court Upholds Proposition 22 Allowing Gig Workers To Be Classified As Independent Contractors

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On July 25, 2024, CaliforniaCalifornia’s Supreme Court issued a highly anticipated ruling that allows app-based rideshare and delivery companies to classify drivers as independent contractors instead of employees, if certain...more

Locke Lord LLP

Customer Service Companies Using Independent Contractor Business Model Risk ‎Misclassification Liability: July 2024 IC Legal News...

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Last month, two key legal developments in the area of independent contractor misclassification and compliance highlighted the risks posed to customer service companies that use an independent contractor business model. The...more

Davis Wright Tremaine LLP

D.C. Attorney General Cracks Down on Worker Misclassification

D.C. businesses that utilize independent contractors would be well advised to review and revise their independent contractor relationships in light of an increased focus by the D.C. Office of the Attorney General ("OAG") on...more

Cozen O'Connor

District of Columbia AG Secures Record $3.75 Million Wage-Theft Settlement

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District of Columbia AG Brian Schwalb settled with contractors Power Design, Inc. (PDI) and John Moriarty & Associates of Virginia, LLC (JMA), along with multiple labor subcontractors, to resolve allegations that the...more

Jackson Lewis P.C.

How Construction Employers Can Avoid Common Wage & Hour Claims

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Employer wage and hour violations of the Fair Labor Standards Act (FLSA) and other applicable state laws are some of the most frequent in the construction industry. They are often the costliest an employer can make. However,...more

Fisher Phillips

SCOTUS 2023/24 Lookback and Preview: 8 Key Rulings that Impact the Workplace and 4 New Cases for Employers to Track Next Term

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The Supreme Court issued several momentous decisions last term that will have a lasting impact on employer practices. The Justices continued to shape the workplace law landscape by ruling on an array of issues involving...more

Locke Lord LLP

Jurors Disagree on Whether Ride Share Drivers Are Independent Contractors or ‎Employees: June 2024 IC Legal News Update ‎

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Lawyers representing ride share drivers have argued for years that their clients are being misclassified as independent contractors under federal and state laws. They have attained little success, however, obtaining...more

Fisher Phillips

SCOTUS to Ponder Proof in Wage Misclassification Case: 5 Steps for Employers to Comply with Overtime Exemption Rules

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What evidence does an employer need to show a court to prove it correctly classified employees as exempt from minimum wage and overtime pay? The Supreme Court announced on June 17 that it will address a disagreement among...more

Fisher Phillips

Uber and Lyft Settlement Provides New Precedent for the Gig Economy and Major Benefits for Massachusetts Drivers: Key Employer...

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Uber and Lyft just reached a $175 million settlement with Massachusetts state prosecutors that permits their drivers to stay classified as independent contractors – not employees – but entitles the drivers to significant...more

Carlton Fields

Alabama Federal Court Seals and Approves FLSA Settlement Agreement, Addresses Confidentiality Provision

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The plaintiff was employed by defendant Pilot Catastrophe Services Inc. as an insurance claims adjuster, where she was responsible for inspecting property damage claims and providing damage estimates to insurance companies....more

Locke Lord LLP

Industries Counteract Class Action Independent Contractor Misclassification Claims: May ‎‎2024 IC Legal News Update‎

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Class action independent contractor misclassification cases continue to be filed and most seem to settle, often for large sums, as we have reported in our blog posts on legal developments each month. But some industries have...more

Fox Rothschild LLP

2024 Minnesota Legislative Session: What Employers Need to Know

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The 2024 Minnesota legislative session did not produce nearly as many significant pieces of employment legislation as the 2023 session. Still, this legislature passed multiple new employment laws this year and amended several...more

Carlton Fields

Federal Court Rejects Argument That Subsequent Opt-Out of Arbitration Clause Precluded Arbitration

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The U.S. District Court for the Northern District of Illinois has rejected an argument that opting out of arbitration clauses precluded arbitration under prior arbitration agreements in a dispute between Uber drivers and...more

Littler

Effective July 1, Minnesota Employers Face Increased Scrutiny and Possible Liability for Using Independent Contractors Versus...

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Governor Tim Walz has signed into law significant changes to Minnesota’s independent contractor and employment laws.  Effective July 1, all employers, as well as their owners, risk significantly increased penalties for...more

Amundsen Davis LLC

Motor Carriers Beware: Department of Labor Revises Classification of Independent Contractors Under Fair Labor Standards Act

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On January 10, 2024 the U.S. Department of Labor (DOL) published a final rule (29 CFR 795) revising the DOL’s guidance on how to analyze who is an employee or independent contractor under the Fair Labor Standards Act (FLSA)....more

Fox Rothschild LLP

Misclassification In Davis Bacon/Prevailing Wage Cases Is A Warning To Employers To “Be Careful Out There.”

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I have defended more than one hundred Davis Bacon Act and state prevailing wage cases. This is a much nuanced area of law with many minefields for the unwary employer, one of which is the issue of what trade or craft to pay...more

Spilman Thomas & Battle, PLLC

Everything Old is New Again: The Department of Labor Returns to the Past with Independent Contractors

It has been said that if you wait long enough, everything comes back into fashion. This saying is true even for the U.S. Department of Labor (DOL), where on March 11, 2024, the DOL reverted back to the multifactor,...more

Williams Mullen

Top 10 Employment Compliance Pitfalls for Emerging Companies

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Whether you are a founder or a manager, growing a company from scratch is an exciting process. For most companies, this process will involve the hiring and management of employees at a rapid pace....more

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