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“Yes” on Prop 22 in California Brings Relief to Rideshare and App Delivery Services; Legal Challenges Will Continue Under Federal...

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

AB2257: Not Much Better Than AB5 for Most Industries in California Using Independent Contractors

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

Over 1,500: The Number of Comments Submitted To Labor Department On Proposed Rule Governing Independent Contractor Status

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

Polar Opposites Among Independent Contractor Tests: September 2020 News Update

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

Reminder to New York Employers: New York’s Sick Leave Law Takes Effect on September 30, 2020

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

Much Ado About (Almost) Nothing: The Labor Department’s New Proposed Independent Contractor Classification Rule

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

Bloggers and Pharmacy Delivery Workers Are Next Group of Workers to Score Large Payouts in Independent Contractor...

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

Forget Those Amazon Decisions: Companies Using Independent Contractors to Transport Or Deliver Products Can Still Compel...

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

Baked Goods Companies Targeted by Distributors in Independent Contractor Misclassification Class Actions: June 2020 News Update 

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

Is the New Postmates Decision in New York a Blockbuster Case on Independent Contractor Misclassification or Not?

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

February 2020 Independent Contractor Misclassification and Compliance Law News Update 

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

January 2020 Independent Contractor Misclassification and Compliance Law News Update 

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

New Joint Employer Rule Has Impact on Independent Contractor Misclassification Claims

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

November and December 2019 Independent Contractor Misclassification and Compliance Law News Update

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

The Past Decade of Independent Contractor Misclassification and Compliance Law

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

A Solution to the “Five Degrees of Independent Contractor Misclassification”

“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

October 2019 Independent Contractor Misclassification and Compliance News Update

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

August and September 2019 Independent Contractor Misclassification and Compliance News Update

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

How to Operate in California with Independent Contractors After AB5 Bill Is Signed Into Law

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

NLRB Finds Couriers Were Misclassified As Independent Contractors, But Rejects Argument That Misclassification Is a “Stand-Alone”...

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

July 2019 Independent Contractor Misclassification and Compliance News Update

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

New Jersey Getting Tougher on Independent Contractor Misclassification: Task Force Issues Report With 16 Regulatory and...

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

June 2019 Independent Contractor Misclassification and Compliance News Update

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

April and May 2019 Independent Contractor Misclassification and Compliance News Update

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

Insurance Agent for Northwestern Mutual Found to be Independent Contractor, Not Employee

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

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