Immediately following the issuance of the U.S. Supreme Court’s decision in New Prime v. Oliveira on January 15, 2019, we stated in a blog post that “even if an individual or group of workers is excluded [from arbitration]...more
Today, one day before the end of President Trump’s Administration, the U.S. Department of Labor issued an opinion letter that certain owner-operator drivers that provide services to a transportation and logistics company are...more
On the day the U.S. Department of Labor issued a proposed regulation regarding the classification status of independent contractors, we reported here that the regulation, once finalized, would be “much ado about (almost)...more
In October, a diverse group of industries experienced adverse court rulings defending independent contractor classification class and collective action cases. Two cases involved courts granting conditional certification of...more
11/10/2020
/ ABC Test ,
Arbitration ,
Employee Definition ,
Employer Liability Issues ,
Employment Litigation ,
Fair Labor Standards Act (FLSA) ,
Federal Aviation Administration Authorization Act of 1994 (FAAAA) ,
Independent Contractors ,
Insurance Agents ,
Insurance Industry ,
Misclassification ,
Private Attorneys General Act (PAGA) ,
Wage and Hour
In response to the U.S. Department of Labor’s proposed regulation on independent contractor status under the Fair Labor Standards Act, over 1,500 individuals and organizations have already filed comments prior to the deadline...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
Yesterday, the U.S. Labor Department issued a proposed regulation addressing the classification criteria of workers as independent contractors or employees under the Fair Labor Standards Act (FLSA). Unlike regulations with...more
Six of the nine cases reported below from July 2020 involve drivers’ class action lawsuits alleging independent contractor misclassification against transportation and logistics companies. They include three settlements, the...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
Many companies that operate their businesses on an independent contractor model or supplement their workforce with ICs may be wondering if they will be impacted by the U.S. Department of Labor’s final rule on joint employer...more
There were several notable court and administrative cases over the past two months, but they were overshadowed by a legislative matter: the enactment of Assembly Bill 5 in California, which was the subject of our September...more
10/2/2019
/ Class Action ,
Corporate Counsel ,
Employee Definition ,
Employer Liability Issues ,
Fair Labor Standards Act (FLSA) ,
Franchisors ,
Independent Contractors ,
Misclassification ,
NLRB ,
Popular ,
Ridesharing ,
Wage and Hour ,
Wage Payment and Collection Act
Earlier today, the U.S. Department of Labor issued an Opinion Letter on the issue of independent contractor status of an on-demand virtual marketplace company (VMC) that refers end-market consumers to service providers who...more
Companies that operate their businesses on an independent contractor model or supplement their workforce with ICs are likely to be asking, “Does the proposed new joint employer regulation issued by the U.S. Department of...more
One need only glance at the court cases we report on below to understand why some businesses choose to settle independent contractor misclassification cases. Three of these cases highlight the unpredictable approaches...more
3/12/2019
/ ADEA ,
Civil Rights Act ,
Class Action ,
DirectTV ,
Employer Liability Issues ,
Fair Labor Standards Act (FLSA) ,
Franchisee ,
Franchises ,
Independent Contractors ,
Misclassification ,
Popular ,
Title VII ,
Wage and Hour
For the past 18 months, insurance companies have been holding their collective breath to see if an appellate court would affirm or reverse an Ohio district court decision concluding that thousands of current and former agents...more
While there were no headline-grabbing cases or developments in the area of independent contractor misclassification and compliance during the past month, the first four court decisions reported below provide the basis for two...more
12/12/2018
/ Arbitration ,
Class Action ,
Class Certification ,
Corporate Counsel ,
Department of Labor (DOL) ,
Employer Liability Issues ,
Employment Litigation ,
Equal Employment Opportunity Commission (EEOC) ,
Fair Labor Standards Act (FLSA) ,
Independent Contractors ,
Misclassification ,
Title VII ,
Wage and Hour
October was an eventful month for legal developments in the area of independent contractor misclassification and compliance. In one of the nine cases reported below, the U.S. Department of Labor continues to aggressively...more
Independent contractor misclassification lawsuits swept across a swath of businesses last month, affecting companies in both the gig economy and traditional industries. Discussed below are class action and individual...more
10/11/2018
/ Arbitration Agreements ,
Class Action ,
Corporate Counsel ,
Employer Liability Issues ,
Employment Discrimination ,
Employment Litigation ,
Equal Employment Opportunity Commission (EEOC) ,
Fair Labor Standards Act (FLSA) ,
Independent Contractors ,
Misclassification ,
Popular ,
Title VII ,
Uber ,
Wage and Hour
This past month was not a particularly newsworthy month in the area of independent contractor misclassification and compliance, but four court cases do provide insights for businesses that rely on ICs. In the first case...more
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
A cottage industry for plaintiffs’ class action lawyers has been independent contractor (IC) misclassification lawsuits, and one of the industries taking the brunt of those types of legal proceedings is energy, particularly...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
Yesterday, Uber Technologies, Inc. won a watershed case under federal and state wage laws on the issue of whether Uber drivers are independent contractors, as the company has steadfastly maintained. A federal district court...more
Independent insurance sales agents have been treated as independent contractors for decades. But recently, class action lawyers have begun to target insurance companies with claims that insurers have misclassified these sales...more
Last month, half of the cases that came to our attention in the area of independent contractor misclassification and compliance involved interesting issues concerning arbitration – and lessons for companies seeking to limit...more