News & Analysis as of

Misclassification Employer Liability Issues

Fisher Phillips

New 11th Circuit Decision Clarifies Independent Contractor Test: Your Five Step Compliance Plan

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Businesses operating in Alabama, Florida, and Georgia recently received much-needed clarity from the 11th Circuit Court of Appeals on how to determine whether their workers are independent contractors or employees – a...more

Cranfill Sumner LLP

Worker Classification: Employees vs. Independent Contractors (Part III)

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Correctly classifying workers as employees or independent contractors is essential not only for complying with wage and hour laws under the Fair Labor Standards Act (FLSA) and certain tax obligations, but for several other...more

Benesch

A $10 Million Warning Shot: State Attorney General Worker Misclassification Enforcement Puts Healthcare Industry on High Alert

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California’s Attorney General recently secured a $10 million judgment against a healthcare company for misclassifying in-home care workers as independent contractors, highlighting the serious risks of worker...more

Thompson Coburn LLP

Use of AI In Decision-Making May Jeopardize Employees’ FLSA Exempt Status

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As artificial intelligence becomes more prevalent in workplaces, it may have an unexpected impact upon employers.  While employers may focus on the benefits AI provides, they must also be mindful that AI may impact employee...more

Thompson Coburn LLP

New California 2026 Minimum Wage Will Also Increase Salary Threshold for Many Exempt Employees

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Starting January 1, 2026, California’s minimum wage for non-exempt employees will increase from $16.50 to $16.90 per hour — a 2.49% increase over 2025 rates.  (Certain industries – fast food and health care – are already...more

Offit Kurman

Independent Contractor Misclassification: Labels Don’t Shield Liability, Says Eleventh Circuit

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In a decision that underscores the importance of substance over form in employment relationships, the Eleventh Circuit recently reaffirmed that contractual labels alone do not determine whether a worker is an employee or an...more

Orrick, Herrington & Sutcliffe LLP

Monthly Highlights – UK Employment Law – October 2025

In this month’s highlights, our team summarises the latest developments in UK employment law and their implications for employers. ...more

Fisher Phillips

Managing Director Personally on the Hook for $2 Million in Wage Violations: 6 Steps to Avoid Liability

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Business owners, executives, and managers need to pay attention to wage and hour compliance or risk personal liability. In a recent ruling under federal and New Jersey wage and hour law, a managing director with some...more

Morgan Lewis

California Announces 2026 Increase in Computer Professional Exemption Compensation Rate

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California employers must ensure that compensation rates for computer professionals meet new compensation thresholds as of January 1, 2026. Each year, the California Department of Industrial Relations (DIR) sets the...more

Troutman Pepper Locke

New Jersey Attorney General and Department of Labor Receive Payment Under Lyft Settlement

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On September 18, 2025, the New Jersey Department of Labor and Workforce Development (NJDOL) and the Office of the New Jersey Attorney General (AG) announced that Lyft had paid $19,435,087.06 for allegedly misclassifying its...more

Troutman Pepper Locke

Minnesota AG Ellison Reaches $800,000 Settlement With Shipt to Protect Workers’ Rights

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On September 26, 2025, Minnesota Attorney General (AG) Keith Ellison announced a $800,000 settlement with Shipt, Inc. (Shipt). The settlement resolves allegations that the company was misclassifying its workers (referred to...more

Troutman Pepper Locke

App-Based Independent Contractor Settlements Exclude Any Obligation to Reclassify: September 2025 IC Legal News Update

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The most noteworthy legal development last month in the area of independent contractor (IC) compliance and misclassification law was the $19 million assessment paid to the New Jersey Department of Labor and Workforce...more

Bradley Arant Boult Cummings LLP

Independent Contractors May Not Be the Cheapest Route

For those thinking that classifying workers as independent contractors is a cheaper way of doing business, beware. A California court just ordered a home healthcare business to pay $10 million in restitution and civil...more

Lathrop GPM

[Event] 2025 Employment & Labor Law Seminar - October 29th, San Jose, CA

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Join us for our annual employment law seminar—with a bold refresh—on Wednesday, October 29. Building on the strong foundation laid by Hopkins Carley, this year’s event will feature expanded content, breakout sessions, and a...more

Troutman Pepper Locke

Three of the Oldest Independent Contractor Misclassification Cases Are Coming to an End: August 2025 IC Legal News Update

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This past month, three of the longest-running class actions alleging independent contractor (IC) misclassification are finally ending. In all three cases, the companies, after vigorously defending themselves for close to a...more

Frost Brown Todd

Recent Amendments to the Colorado Wage Act: Stronger Employee Protections, Higher Stakes for Employers

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On August 6, 2025, various amendments to the Colorado Wage Act, § 8-4-101, et. seq. took effect and have important ramifications for Colorado employers. Among other changes, the amendments create new fines for employee...more

Lewitt Hackman

Good Faith Requires Action: The New Standard for Employer Defense

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As defense attorneys, we often encounter matters where an employer’s good-faith mistake gives rise to wage and hour litigation. While ignorance of the law generally provides no defense, a good-faith mistake, historically...more

Conn Maciel Carey LLP

Can Service Charges be Distributed to Independent Contractors?

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These days, restaurant bills are more confusing than ever. Even as an employment attorney in the hospitality industry, I often find myself scratching my head at the various additional service charges, automatic gratuity...more

Keating Muething & Klekamp PLL

No Free Delivery: Misclassification Comes at a Price

A recent $24.75 million class action settlement in Lawson v. Grubhub, Inc., marks yet another milestone in the ongoing debate over gig-economy worker classification. This settlement serves as a reminder to companies of all...more

Constangy, Brooks, Smith & Prophete, LLP

California Supreme Court raises bar for employers: “We didn’t know” is no defense

In a unanimous decision that strengthened California’s already robust worker protections laws, the state’s Supreme Court has made it harder for employers to avoid increased damages for minimum wage violations. The ruling in...more

Weintraub Tobin

Wage Compliance Mistakes Could Cost You — Are You at Risk?

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One of the primary issues employers must navigate is determining how to pay their employees, and that process begins with correctly classifying them. Only a limited number of positions within any company, such as managers,...more

Hogan Lovells

Global guide: Independent contractors, potential misclassification issues, and labor implications

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In today's labor market, classifying workers as employees or independent contractors is crucial, especially in diverse legal landscapes like the U.S., the UK, Spain, Germany, Mexico, the Netherlands, Italy and France. ...more

Foster Swift Collins & Smith

[Webinar] Labor & Employment Law Update: 2025 Recap and Insights for 2026 - September 17th, 9:00 am - 11:30 am ET

It has been a particularly busy year on the labor and employment law front. To learn more about the major challenges employers face and developments your organization needs to address before year's end, we encourage you to...more

Whiteford

Employment Law Update: Danger, Employers, Danger! How Machine Intelligence Is Pushing White-Collar Employees Toward Overtime...

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Artificial intelligence (AI) is rapidly automating the very tasks that once anchored white-collar exemptions under the federal Fair Labor Standards Act (FLSA) and comparable state laws. When algorithms screen résumés, rank...more

Conn Maciel Carey LLP

[Event] In-Person Breakfast Briefing: Wage & Hour Update - September 17th, Washington, DC

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Navigating wage and hour compliance is more complex than ever. This complimentary, interactive in-person briefing goes beyond the basics to explore the real-world challenges employers are facing today. Led by our dedicated...more

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