The results are in. Voters in California don’t want their rideshare and app-based delivery services to change. By an overwhelming majority, Proposition 22 was approved by California voters. Essentially, that means that...more
Many independent contractors complained of dire consequences when Assembly Bill 5 (“AB5”) became effective in California on January 1, 2020. Following intense lobbying and public relations campaigns, independent contractors...more
Last month presented a clash between the enactment of a new version of the most restrictive state law test in the nation for independent contractor status and the issuance of a proposed federal regulation that would create...more
10/9/2020
/ ABC Test ,
Class Action ,
Corporate Counsel ,
Department of Labor (DOL) ,
Employee Definition ,
Employer Liability Issues ,
Fair Labor Standards Act (FLSA) ,
Independent Contractors ,
Misclassification ,
Preemption ,
Wage and Hour
Many independent contractors complained of dire consequences after Assembly Bill 5 (AB5) became effective in California on January 1, 2020. Following intense lobbying and public relations campaigns, independent contractors in...more
May 2020 was not a busy month for the filing of new independent contractor misclassification lawsuits, as some courts were closed for new filings and many lawyers were working remotely. But five cases came to our attention...more
This past month was the first month we can recall where there were no legal developments of note involving class action independent contractor misclassification lawsuits, which have become increasingly prevalent. Instead,...more
While selected states are in the midst of trying to crack down on independent contractor misclassification, the federal government is trying to clear a path and clarify the tests for independent contractor status under...more
2/18/2020
/ ABC Test ,
Arbitration ,
Arbitration Agreements ,
Corporate Counsel ,
Department of Labor (DOL) ,
Employee Definition ,
Employer Liability Issues ,
Fair Labor Standards Act (FLSA) ,
Federal Arbitration Act ,
Independent Contractors ,
Misclassification ,
Private Attorneys General Act (PAGA) ,
Wage and Hour
Our combined news update provides guidance for companies that utilize independent contractors on what not to do. The first lesson involves a company’s waiver of its best argument for compelling arbitration of an IC...more
Ten years ago, when we began a legal blog dedicated to independent contractor compliance and misclassification, the landscape of the law involving ICs was quite different than today – although a great deal remains unchanged. ...more
“Independent contractor misclassification” is a phrase that is misunderstood, misapplied, and misused – constantly. It is used to cover an array of disparate forms of IC misclassification: unpardonable; uninformed;...more
The latest version of Assembly Bill 5, which codifies the California Supreme Court’s Dynamex decision that was issued in April 2018, is about to become law. Dynamex created a so-called ABC test requiring companies to satisfy...more
We are often asked, what industries are impacted by independent contractor misclassification? While IC misclassification claims are most prevalent in the construction, transportation, and gig economy businesses, there are...more
This past month was relatively uneventful in the area of independent contractor misclassification and compliance news, if one regards a $16.5 million settlement as unremarkable. But the amount of the settlements in IC...more
In a very favorable ruling for insurance companies, a federal district court on May 6 held that Northwestern Mutual Life Insurance Company had not misclassified as an independent contractor (IC) a life insurance agent who...more
Following on the heels of a very favorable decision by a federal appellate court earlier this year that insurance agents for American Family Insurance were not misclassified by the company as independent contractors in a...more
This past month may well be regarded as one of the more legally satisfying for businesses using independent contractors. Courts issued three decisions in favor of companies on the issue as to whether certain workers are ICs...more
Last month was notable for a number of judicial and administrative decisions against companies defending independent contractor misclassification claims. In one case, the plaintiff seeks to use the company’s statements in...more
8/14/2018
/ ABC Test ,
CA Supreme Court ,
Class Action ,
Corporate Counsel ,
Employer Liability Issues ,
Employment Litigation ,
Independent Contractors ,
Misclassification ,
Over-Time ,
Ridesharing ,
Uber ,
Unpaid Wages ,
Wage and Hour
The past two months were momentous for many companies that engage independent contractors in California to supplement their workforce or to interact with their customers. This applies not only to businesses based in...more
6/11/2018
/ ABC Test ,
Administrative Law Judge (ALJ) ,
Arbitration Agreements ,
CA Supreme Court ,
Class Action ,
Corporate Counsel ,
Delivery Drivers ,
Employer Liability Issues ,
Fair Labor Standards Act (FLSA) ,
Independent Contractors ,
Misclassification ,
NLRA ,
Section 7 ,
Uber ,
Unfair Labor Practices ,
Wage and Hour
When the California Supreme Court issued its groundbreaking decision in the Dynamex case on April 30, announcing a new test to be used in determining independent contractor status under certain California laws, it left open a...more
Earlier today, the California Supreme Court established the Golden State as one of the least hospitable jurisdictions in the nation toward independent contractor status. Abandoning its decades-old common law test used to...more
The California Supreme Court will hear oral argument tomorrow in a case that has the potential for altering the long-standing test in California for independent contractor status. The case is Dynamex Operations West v....more