Undoubtedly the most meaningful legal development in September 2022 was Uber’s agreement to pay $100 million in settlement to the New Jersey Department of Labor and Workforce Development for back unemployment taxes. As...more
We highlight below the independent contractor misclassification and compliance developments that occurred in July and August 2022, but three deserve special mention. One of the most important judicial developments is a new...more
The U.S. Labor Department has been playing musical chairs in its approach to classifying workers as independent contractors or employees under the federal Fair Labor Standards Act since the middle of the Obama Administration....more
Since the inception of this blog in 2010, we have reported on independent contractor misclassification class actions filed against hundreds of companies in scores of industries. Yet some industries seem to have been targeted...more
Last month, a Regional Director for the National Labor Relations Board (“NLRB”) issued a Complaint and Notice of Hearing that could, if successful, dramatically change the landscape of independent contractor misclassification...more
Three industries suffered setbacks last month in independent contractor misclassification cases, while another targeted industry targeted scored a success. As we have reported in many prior blog posts, class action lawyers...more
A decision by a federal court in New Jersey last month is a reminder to companies that arbitration clauses need to be drafted well in order to succeed. New Jersey courts for many years have been perhaps the most finicky in...more
Late last week, the National Labor Relations Board last week issued a Complaint and Notice of Hearing that could, if successful, make the act of misclassifying workers as independent contractors a violation of the National...more
This past month, the most notable lawsuit alleging independent contractor misclassification was an ERISA claim. ERISA lawsuits by workers alleging independent contractor misclassification can potentially expose companies to...more
Federal and local officials in Washington, D.C. took steps last month to gear up their counter-attacks against independent contractor misclassification, but companies that have taken meaningful steps to enhance their...more
Perhaps the most significant development involving independent contractor compliance and misclassification issues in December 2021 received relatively scant attention: a detailed empirical study based on survey results of a...more
Earlier this week, the National Labor Relations Board issued an Order inviting the public to file briefs in a case involving the independent contractor status of workers providing makeup and hairstyle services to the Atlanta...more
The highlights of independent contractor legal developments in November 2021 focus on interstate transportation workers. Questions addressed by the courts last month included whether ride-sharing workers classified as...more
October was a relatively “slow” month for legal developments in the areas of independent contractor misclassification and compliance. But for companies that engage drivers to distribute pharmaceutical products, a nearly $12...more
State legislative efforts to expand the coverage of new employment laws to independent contractors in addition to employees continue to emerge. It appears that New York is on the cutting edge of this trend. We highlight...more
The country is focused on vaccination mandates for employees and customers. What about independent contractors? Can companies require them to be vaccinated? The answer to that question may depend on whether the independent...more
The first three cases reported below regarding legal developments in August 2021 have four common denominators: the defendants are all large gig economy companies; plaintiffs’ class action counsel is the same; the lawsuits...more
9/15/2021
/ ABC Test ,
Arbitration ,
Class Action ,
Corporate Counsel ,
Employee Definition ,
Employer Liability Issues ,
Fair Labor Standards Act (FLSA) ,
Federal Arbitration Act ,
Gig Economy ,
Independent Contractors ,
Lyft ,
Misclassification ,
Wage and Hour
Most class action cases of independent contractor misclassification are brought against corporate entities. Yet many laws also permit plaintiffs to sue company executives or managers for personal liability in such cases. In...more
June was a relatively slow month in the area of independent contractor misclassification and compliance. But it produced what may turn out to be one of the more important judicial decisions in years affecting last-mile...more
Direct sellers and door-to-door salespersons are frequently classified as independent contractors – and that classification is increasingly under attack, both by class action lawyers and the U.S. Department of Labor, as...more
April 2021 was a meaningful month for two industries that are hardly strangers to lawsuits involving the status of workers as independent contractors. A federal district court in the District of Columbia issued an extremely...more
5/12/2021
/ ABC Test ,
Arbitration ,
Class Action ,
Fair Labor Standards Act (FLSA) ,
Federal Arbitration Act ,
Federal Aviation Administration Authorization Act of 1994 (FAAAA) ,
Independent Contractors ,
Misclassification ,
Motor Carriers ,
Popular ,
Ridesharing
The U.S. Department of Labor today issued a rule yesterday that withdraws the Trump Administration’s regulation setting forth a test to classify workers as independent contractors or employees under the federal Fair Labor...more
Earlier today, the U.S. Department of Labor formally issued a rule that withdraws the Trump Administration’s regulation addressing the test for classifying workers as independent contractors or employees under the federal...more
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
Micro-mobility company Lime, which provides electric scooter and bike sharing to customers through its mobile app, has been targeted by plaintiffs’ lawyers in class action and representative lawsuits attacking one of the core...more