News & Analysis as of

$4.5 million wage settlement for Pa. and WVa. workers in oil and natural gas industry

On Tuesday, December 9, 2014, the U.S. Department of Labor (DOL) announced that it has reached agreement with numerous employers in the oil and natural gas industry in Pennsylvania and West Virginia to provide 5,310 workers...more

Aggressive FLSA Enforcement May Now Mean Jail Time

The recent arrest of a New York restaurant owner for failing to pay her employees minimum wage and overtime pay highlights the aggressive efforts currently used to enforce employment laws like the Fair Labor Standards Act...more

Nevada Supreme Court Finds Class of Strippers Were Employees

Given the extensive use of euphemisms in the exotic dancing trade, we’ll apologize in advance for any unintended puns. We’ve written on the issue of the classification of exotic dancers or strippers in the past [April...more

November 2014 Independent Contractor Compliance and Misclassification Update

This month’s headline developments are two independent contractor misclassification class action lawsuits: one was filed in New York against a Silicon Valley giant, Google Inc., and the second was filed in California against...more

Joe’s Crab Shack Managers Move Forward with Class Action Wage and Hour Misclassification Suit Despite Plaintiffs’ Inability to...

Last week, the California Court of Appeal for the Second Appellate District reversed a trial court’s class certification denial in a proposed overtime class action brought by Joe’s Crab Shack managers against the restaurant...more

New California Law Imposes Joint Liability on Businesses and Contract Vendors for Wage Violations and Workers’ Compensation...

For companies using independent contractors in California, 2014 has been a difficult year, with several significant court decisions threatening the contractor model. In June, the Ninth Circuit rejected the parties’ choice of...more

Employer Prevails on Misclassification Claim Where Employee Fails to Prove Hours Worked

Greg Holaway worked as a Field Service Engineer for Stratasys, Inc. He was categorized as exempt from the provisions of the Fair Labor Standards Act (FLSA) requiring the payment of overtime. Even though his title was...more

Employment Law Update - Independent Contractors: The NLRB Refines its Standards

Whether an individual is classified as an independent contractor or an employee has significant legal implications, because most federal and state employment laws do not apply to independent contractors. Independent...more

Supreme Court Declines to Hear Challenge of Illinois Independent Contractor Classification Law

On October 14, 2014, the Supreme Court of the United States refused to consider a challenge to the Illinois Employee Classification Act, which classifies workers in the construction industry as employees unless they can meet...more

Wage Order—Not Borello—Applies in Independent Contractor Status Test Says California Court of Appeal

The California Court of Appeal, Second District, issued an opinion on October 15, 2014, that considered whether the definition of “employee” from the Industrial Welfare Commission Wage Order No. 9 (Wage Order) or the common...more

“Black Car” Drivers Found to be Independent Contractors

Recently, courts in highly-publicized independent contractor misclassification cases in the transportation sector have issued determinations finding the workers to be employees. However, a recent decision from the Southern...more

California District Court Finds Bankrupt Named Plaintiffs Not Adequate Representatives

Anyone questioning whether the Supreme Court’s decision in Wal-Mart Stores, Inc. v. Dukes, 131 S. Ct. 2541 (2011), has had an impact need look no further than the decision in Alakozai v. Chase Investment Services Corp., Case...more

NLRB Adopts New Test for Independent Contractor Misclassification, Applies it to Find FedEx Drivers are Employees Who Can Unionize

The NLRB has tossed a new vegetable into the enormous salad of independent contractor misclassification tests. As companies might expect, the new vegetable smells rotten. Companies who wish to analyze whether their...more

Misclassification Initiatives Spread as Alabama Signs Formal Pact with DOL

On October 2, 2014, the Alabama Department of Labor and the U.S. Department of Labor (DOL) entered into a formal Memorandum of Understanding (MOU) or agreement to share information regarding independent contractor...more

New California Law Imposes Costly Risks to Companies Using Independent Contractors Supplied by Staffing and Recruiting Firms – But...

On September 28, 2014, Governor Jerry Brown of California signed a bill that puts a potentially enormous liability risk on companies that use workers supplied by “labor contractors” that fail to pay all wages due the workers....more

Employment Law - Oct 2014

The Need to Correctly Classify Employees - Why it matters: Providing a $1.25 million lesson in the importance of correctly classifying employees, the Oakland Raiders settled a lawsuit brought by the team’s cheerleading...more

Attn. General Counsel: Big Changes are Coming to Wage-and-Hour Law

The White House has already taken steps to propel no less than three significant changes in wage-and-hour law, all of which could have wide-ranging effects on employers of all sizes. The likely changes include an increase in...more

Employment Law Summer Recap 2014: Part 8 of 11 – New York’s Coldest Summer, Especially for Employers Who Utilized Unpaid Interns

It felt like we were in a dream. Or maybe San Diego. Day after day, 82 degrees and little humidity. In a word: pleasant. We know next summer probably won’t be the same, but we sure enjoyed this one. That’s right – this was...more

Claims Handlers: It’s Time to Adjust Our Claims!

Many insurers have a longstanding practice of paying claims adjusters a set weekly salary, regardless of the number of hours they actually work. The practice has support in federal labor regulations; the regulations...more

Employment Law Summer Recap 2014: Part 1 of 11 – FedEx sings Nico & Vinz’s “Am I Wrong”…to Classify Our Drivers as Independent...

Am I wrong for thinking out the box from where I stay? Am I wrong for saying that I choose another way? Those are the opening lyrics to Nico & Vinz’s (catchy would be an understatement) summertime hit...more

Independent Contractors Lying In Wait… An Employment Law Perspective

The Issue: Misclassification of employees as independent contractors is common and it can have “quicksand” impact on employers. In addition to litigation expense, employer risks include compensation and penalties for Wage...more

Worker Classification Task Force Established in Virginia

On August 14, 2014, Virginia Governor Terry McAuliffe signed Executive Order 24 to establish an inter-agency task force on worker misclassification and payroll fraud. The task force is a response to a 2012 report of the...more

Three Point Shot

Female Football Player Throws Flag at LFL over Bare Wages - The three-year championship run of the Los Angeles Temptation was snapped in 2013 when the upstart Chicago Bliss, led by the quarterback and two-time league...more

Learning From LinkedIn: More Big Name Employment Law Violations Showcase Need For Wage and Hour Compliance Training

I confess that up until the huge LinkedIn case last month, I had no idea what wage and hour training even is, or why anyone needed to take it. After all, it’s pretty simple, right? Pay nonexempt workers their regular wage for...more

Sea Change: Ninth Circuit Holds That FedEx Drivers Are Employees — Not Independent Contractors

The Ninth Circuit recently addressed the nearly decade long misclassification dispute between FedEx and its drivers, holding that drivers in California (as well as in Oregon) are FedEx employees, not independent contractors. ...more

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