News & Analysis as of

Wage and Hour Misclassification

Judge OK’s $8.75 Million Postmates Settlement

by Fisher Phillips on

A federal judge in California recently gave his blessing to an $8.75 million settlement in the ongoing litigation by delivery drivers against the food courier service, Postmates. In the class action suit, which was filed in...more

United States Department of Labor Moves Hint at Policy Changes, but Employers Await Clarity

by Vedder Price on

Presidential administration transitions almost always result in policy and enforcement initiative changes at the U.S. Department of Labor (DOL). This year appears to be no different, but it is not yet clear how some recent...more

Ohio Federal Court Finds Insurance Agents are Employees and Not Independent Contractors

by Locke Lord LLP on

In an action filed by insurance agents working under independent contractor agreements with an insurer, the U.S. District Court for the Northern District of Ohio found the agents were employees who could pursue pension and...more

North Carolina Doubles Down on Enforcing Employee Misclassification

On August 11, 2017, Governor Roy Cooper signed into law the Employee Fair Classification Act. While the Act does not change the definition of what constitutes an “employee” under existing North Carolina law, the Act does...more

WPI State of the States: Labor Day Edition

by Littler on

The holiday weekend marked the end of summer fun, but state legislatures across the country remained hard at work in August. Roughly nine statehouses are in active session. In other jurisdictions, such as Florida and Ohio,...more

Starting Up – Set Up Part 2

by Bryan Cave on

This three-part series highlights the steps startups should take before hiring their first employee. Part One of this series focused on several of the federal and local filings and registrations that new employers will need...more

North Carolina’s New Employee Misclassification Law: What Will Be The Practical Effect?

by Jackson Lewis P.C. on

Effective December 31, 2017, the North Carolina Employee Fair Classification Act, signed into law on August 11th, creates the Employee Classification Section of the North Carolina Industrial Commission. This new Section will...more

North Carolina Cracks Down on Employee Misclassification

by Nexsen Pruet, PLLC on

Most employers are familiar with legal issues surrounding the classification of workers as employees or independent contractors. Until recently, these discussions centered primarily around the decision on how a worker should...more

New Case Shows That “Uber-ization” of Workforce Could Lead to Misclassification Challenges

by Fisher Phillips on

Earlier this week, I wrote an article about a recent NLRB decision where the Board found a group of workers who provide video content services for the display board at Minnesota Timberwolves basketball games to be incorrectly...more

Are Your Independent Contractors Really Employees?

by Fox Rothschild LLP on

If business owners are not concerned about the make-up of their workforce, they should be. In recent years, the number of lawsuits concerning misclassification of employees has risen exponentially. This is because companies...more

Exempt or Non-Exempt Employee Under U.S. Law? Even U.S. Employers Frequently Get it Wrong

by Dorsey & Whitney LLP on

In the United States, employers are required to pay employees overtime (1.5 times the employee’s hourly rate) for hours worked over 40 per week. In some states, such as California, employers are required to pay overtime if...more

NLRB Finds Sports Team’s Electronic-Content Workers As Employees Eligible To Unionize

by Jackson Lewis P.C. on

The National Labor Relations Board has found the individuals who produce electronic content for viewing during professional basketball games are employees, rather than independent contractors. Minnesota Timberwolves...more

New South Carolina Decision Impacts How Employers Classify Workers

This blog has previously covered the potential pitfalls of classifying workers as independent contractors. While classifying a worker as a “1099” offers many potential benefits on the business side, it can expose the company...more

DOL Withdraws Guidance Letters Leaving Employers to Pick up the Pieces

On June 7, 2017, the U.S. Secretary of Labor Alexander Acosta announced the withdrawal of the U.S. Department of Labor’s (“DOL”) guidance on independent contractors and joint employment issued during the Obama administration,...more

North Carolina Governor Signs Law Creating Division to Investigate and Prosecute Employee Misclassification Claims

In 2015, a Raleigh newspaper ran a series of investigative articles focused on construction industry members that classified a large portion of their workers as independent contractors instead of employees. The articles...more

Employers Struggle With Overtime Classification of Skilled Service Technicians

Over the past several years, we have received multiple inquiries from employers confronted with claims that they have misclassified service technicians as exempt from the overtime requirements of the Fair Labor Standards Act...more

NC “Employee Classification” Law Warrants Caution But Doesn’t Change Substantive Law

On August 11, Gov. Roy Cooper signed into law the North Carolina Employee Fair Classification Act. The portion of the legislation that deals with worker classifications will take effect December 31....more

Allegations of Misclassification Are Insufficient to Demonstrate Commonality and Typicality According to California Court of...

The California Court of Appeal for the Fourth District held that misclassification alone does not establish liability for overtime violations, and, thus, the fact that members of a putative class were classified as exempt was...more

Fifth Circuit Ruling Emphasizes Importance of Establishing Factual Basis for Compensating Employees Using Fluctuating Workweek...

by Jackson Walker on

On August 4, 2017, the United States Court of Appeals for the Fifth Circuit issued an opinion in Hills v. Entergy Operations, Inc., addressing what it called the “tricky” and often “perplexing” task of determining a salaried...more

Employers Beware: Fifth Circuit Narrows “Fluctuating” Workweek

by Reed Smith on

In a recent Wage and Hour development, the Fifth Circuit held that the “fluctuating workweek method,” which allows employers to decrease their liability for overtime payments in situations where they misclassify exempt...more

Will Dealerships And Third-Party Detailers Continue To Face Increased DOL Scrutiny?

by Fisher Phillips on

During the Obama administration, the U.S. Department of Labor (DOL) placed special emphasis on scrutinizing the alleged misclassification of independent contractors and joint employer relationships. Dealerships were notably...more

Florida Court Denies Conditional Certification of FLSA Case Involving Restaurant Staff

by BakerHostetler on

As we’ve noted before, many courts have applied the standard for conditional certification so leniently that in places the requirement of a group of “similarly situated” employees under the FLSA has all but disappeared. So,...more

In what direction will Uber drive SA labour laws?

by Hogan Lovells on

The recent CCMA ruling in favour of Uber drivers now heads to the Labour Court. This is an extremely important case as South African labour laws for the first time now come "Head-to-Bot" with the fourth industrial revolution....more

Worker Classification Update

by Clark Hill PLC on

On July 20, 2017, the Internal Revenue Service ("IRS") issued a reminder for small businesses on the importance of correctly classifying workers as employees or independent contractors. Employers failing to do this correctly...more

Certification Of Alleged Misclassified Bakery Distributors Denied Due To Predominance Of Individualized Issues

by Jackson Lewis P.C. on

Class certification would have been granted in Soares v. Flowers Foods, Inc., 3:15-cv-04918 (N.D. Cal., June 28, 2017), but for the allegedly misclassified independent contractors’ decision to deliver, or not deliver, the...more

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