Wage and Hour Misclassification

News & Analysis as of

April 2016: Five Biggest Labor And Employment Law Stories

The world of labor and employment law is always rapidly evolving. In order to make sure that you stay on top of the latest developments, here is a quick review of the five biggest stories from last month that all employers...more

New Jersey Legislative Update, Part II: What’s in the Works for New Jersey Employers?

A Higher Minimum Wage in Certain Counties - On March 14, 2016, a bill (A3471) was introduced that would require all employers in Essex, Hudson, Camden, Mercer, and Middlesex counties to pay their employees at least...more

Everyone Keeps Focusing On Independent Contractors, So We Will Too…

If it looks like “Independent Contractor vs. Employee Week” on Labor & Employment Law Perspectives, that may be a function of the fact that misclassification of employees as independent contractors has been a hot topic for...more

Uber Willing to Pay $100 Million to Keep Its Drivers Classified as Independent Contractors

Recently, Uber announced that it agreed to pay drivers in California and Massachusetts $100 million in an effort to ensure that the drivers are considered independent contractors, not employees. In just six years, Uber has...more

Orchestra Left Without A Chair When The Music Stops: Another Independent Contractor Misclassification

How independent are musicians who play and perform with others? Do they have more artistic control on their own, or do they only become truly great artists in collaboration with others when their independent talents combine...more

NLRB Regional Director Files a Complaint Alleging that Misclassification of Workers as Independent Contractors is an Unfair Labor...

On April 18, the Regional Director for the National Labor Relations Board (the “NLRB”)’s Los Angeles office issued an unfair labor practice complaint against a transportation company, alleging that the company had...more

The Beat Goes On: D.C. Circuit Upholds NLRB View That Orchestra Musicians Are Employees

Last week, a federal appeals court enforced a ruling by the NLRB that orchestra musicians are employees, not independent contractors. The import of the decision in Lancaster Symphony Orchestra v. NLRB is sure to reverberate...more

Uber Drivers to Remain Independent Contractors…For Now

Uber, the independent taxi service where you can “drive your car and be your own boss,” has long attracted controversy for classifying its drivers as independent contractors and not employees. Class-action lawsuits claiming...more

Uber Class Action Settlement Faces Objections from Plaintiffs’ Lawyers

Uber’s recently announced $100 million settlement to resolve the O’Connor v. Uber Technologies, Inc. class action, in which plaintiffs sought an order deeming them employees, rather than independent contractors, already faces...more

Uber Aims to Settle Two Class Actions; Approximately 385,000 Uber Drivers in California and Massachusetts to Remain Independent...

Last Thursday, Uber settled two closely-watched class actions contesting Uber’s classification of approximately 385,000 drivers in California and Massachusetts as independent contractors as opposed to employees. While the...more

Is the NLRB Trying to Make Independent Contractor Misclassification an Unfair Labor Practice?

A Regional Director for the NLRB issued an unfair labor practice complaint on April 18, 2016 alleging that a transportation company “has misclassified its employee-drivers as independent contractors, thereby inhibiting them...more

Uber Tries to “Lyft” Itself Out of Two Independent Contractor Misclassification Lawsuits By Settling for Up To $100 Million – But...

Only two weeks after a federal court judge in California rejected a proposed $12.25 million independent contractor misclassification settlement between Lyft and its drivers in California because it “shortchanged” the drivers...more

Employment Matters Newsletter, Spring 2016

Employee versus Independent Contractor: The Latest - Courts have been dealing with the issue of whether a worker is considered an employee or an independent contractor for many years. The common law established specific...more

Recent Decisions in Class Actions Mixed Bag for Uber, Lyft

It was a mixed bag on the litigation front for Uber and Lyft last week following a string of decisions in class action lawsuits against these companies. On Tuesday, April 5, the Ninth Circuit granted Uber’s petition to...more

Increased Litigation Of Worker Misclassification Cases Should Place Employers On Notice Of Potential FLSA Violations

Worker misclassification violations under the Fair Labor Standards Act (FLSA) continue to be at the forefront of the U.S. Department of Labor's (DOL) enforcement priority list and of the plaintiffs' bar, which has filed...more

Court Holds Notice of Removal Filed 128 Days After Service of Complaint Was Timely Under CAFA

The U.S. District Court for the District of New Jersey denied plaintiffs’ motion to remand, holding that defendants’ notice of removal, filed 128 days after service of the complaint, was timely because neither the complaint...more

Questions About Delivery Drivers’ Employee/Independent Contractor Status Preclude Commonality and Predominance Findings

A New Jersey district court denied certification of a putative class of furniture delivery drivers and helpers employed by various transportation companies (the “Driver/Helpers”) and individuals who owned those transportation...more

Employee or Independent Contractor? Connecticut Supreme Court Relaxes Burden of Proving Independent Contractor Relationships under...

The risk of liability for misclassifying employees as independent contractors has been high due to federal and state enforcement initiatives, information-sharing arrangements, and complex legal tests for determining whether a...more

Opposition to Lyft’s $12.25 Million Independent Contractor Misclassification Settlement May Cause Court to Nix the Deal

Papers were filed in court today formally opposing the deal that Lyft agreed to with the lawyers representing over 100,000 Lyft drivers in their class action brought in the federal court in San Francisco. The objectors were...more

Connecticut Supreme Court Issues Landmark Favorable Ruling for Employers on Independent Contractor Status

In Standard Oil of Connecticut, Inc. v. Administrator, Unemployment Compensation Act, a case that will have significant implications for employers in Connecticut, the state’s supreme court clarified the “ABC Test,” finding...more

Independent Contractor Ruling: A Deeper Dive

As I return from some time off, my colleagues, Gary Starr and Chris Engler, have dug a bit deeper into the Connecticut Supreme Court decision from last week and issued this alert which we have also sent to clients. A...more

The Connecticut Supreme Court Gets an “A”

There are several facets to the question of whether a person who provides services to a business is an employee or an independent contractor. This classification issue affects whether tax withholding is applied to...more

The Test for Independent Contractors and Unemployment Taxes Made Friendlier

A deeply divided Connecticut Supreme Court recently issued a long-awaited decision, Standard Oil v. Administrator, regarding who is an independent contractor. The reason this is significant is that companies that utilize the...more

North Carolina Federal Court Says State Wage Payment Claims Cannot Be Waived Through Private Release

The Fourth Circuit Court of Appeals (which includes North Carolina and South Carolina) is among the minority of federal appellate circuits that restricts the ability of employers and employees to release claims for unpaid...more

First Circuit Allows FedEx Drivers to Continue with Wage-and-Hour Claims under Massachusetts Wage Act

Misclassification of workers is a trending topic in employment law and can result in significant financial damages for unwary employers. In Schwann v. FedEx Ground Package System, Inc., No. 15-1214, U.S. App. 1st Cir. 2016,...more

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