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California Court Upholds Payroll Tax Withholding on Back Pay and Front Pay Judgment - Tax Update Vol. 2015, Issue 4

The opinion adopts well-established federal law and overturns a 22-year-old California case that held that withholding was not required. Everyone knows that, when an employer pays wages to an employee, the employer...more

Massachusetts High Court Holds that Restrictive Independent Contractor Statute Does Not Apply to Real Estate Salespersons in that...

In a long-awaited decision, the Supreme Judicial Court of Massachusetts ruled yesterday that the state independent contractor (IC) law, widely regarded as the most restrictive IC law in the nation, does not apply to licensed...more

March 2015 Independent Contractor Compliance and Misclassification News Update

This past month’s headline developments involve three major developments in the area of independent contractor (IC) misclassification. The first case involves a large department store that agreed to pay most of the costs of...more

February 2015 Independent Contractor Compliance and Misclassification Update

This month’s headline developments are a set of cases reported in February dealing with class action IC misclassification claims: the highest court in a key state agreeing to decide whether a worker-friendly test should be...more

Even an Exotic Dance Club (a.k.a. Strip Joint) Can Comply with Independent Contractor Laws – And Avoid or Defend Against Class...

A number of our blog posts since October 2010, including our monthly updates beginning in November 2012, have included reports on class action lawsuits by exotic dancers against strip clubs. This industry has, by far, the...more

The 2016 Federal Budget: Targeting Independent Contractor Misclassification as Part of the “Fissured Workplace”

The President released his Fiscal Year 2016 Budget today, February 2, 2015. In furtherance of the President’s budget request, the Labor Department’s Wage and Hour Division provided a 32-page budget justification to Congress...more

January 2015 Independent Contractor Compliance and Misclassification Update

JANITORIAL FRANCHISE COMPANY SETTLES ITS APPEAL OF $4.8 MILLION JUDGMENT IN FAVOR OF MISCLASSIFIED CUSTODIANS. Coverall North America Inc. settled the independent contractor misclassification case filed against it by a class...more

New Jersey Sets Low Bar for Workers Filing Independent Contractor Misclassification Suits

More than a year ago, the U.S. Court of Appeals for the Third Circuit, in an independent contractor misclassification class action, asked the New Jersey Supreme Court to articulate the test that judges should apply in state...more

Florida is 19th State to Partner with U.S. Department of Labor to Combat Unlawful Independent Contractor Misclassification

The Florida Department of Revenue is the latest state agency to sign a memorandum of understanding with the U.S. Department of Labor seeking to prevent employees from being misclassified as independent contractors (ICs). This...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

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

August 2014 Monthly Independent Contractor Compliance and Misclassification Update

This month’s headline development are the seismic decisions, issued on August 27, 2014 by the U.S. Court of Appeals for the Ninth Circuit, concluding as a matter of law that FedEx Ground had misclassified over 2,300 drivers...more

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