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
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
While New York employers continue to navigate the daily challenges of the COVID-19 pandemic, they must remain cognizant of updates to New York laws and their effective dates. This QuickStudy focuses on the enactment of New...more
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
Last month’s legal news in the area of independent contractor misclassification and compliance was dominated by two key arbitration decisions by federal circuit courts: one that compelled arbitration of an IC...more
Two recent federal appellate court decisions struck down Amazon’s arbitration clause in its agreements with workers who deliver its packages to Amazon customers. Those two rulings have created great concern for businesses in...more
We highlight in this past month’s news update two class action settlements entered into by bakery companies alleged to have misclassified product distributors as independent contractors. One of those baked goods companies has...more
The New York Court of Appeals today issued a decision involving the independent contractor status of a Postmates courier. As will become readily apparent by a description of the case history our “Takeaways” below, the...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
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
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
Last month saw large settlements and yet another new lawsuit against companies that have an independent contractor business model, but also success by such companies in obtaining a favorable jury verdict in an IC...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
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
The National Labor Relations Board earlier today held that a courier services company misclassified drivers as independent contractors instead of employees, who are protected under the National Labor Relations Act....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
On July 9, the New Jersey Misclassification Task Force issued its first Report. The Task Force was created by an Executive Order issued by Governor Phil Murphy on May 3, 2018 and includes representatives from the Labor,...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
The past two months were two of the busiest ever in terms of judicial decisions involving claims of independent contractor misclassification, administrative and regulatory initiatives, and legislative developments. They are...more
6/11/2019
/ Arbitration ,
Arbitration Agreements ,
Class Action ,
Corporate Counsel ,
Department of Labor (DOL) ,
Employment Litigation ,
Federal Arbitration Act ,
Independent Contractors ,
Insurance Agents ,
Misclassification ,
Popular ,
Uber ,
Wage and Hour
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