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Misclassification Employer Liability Issues

Foley Hoag LLP

Massachusetts Supreme Judicial Court Rules 7-Eleven Franchisees Are Not Employees

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On September 5, 2024, the Massachusetts Supreme Judicial Court (“SJC”) ruled in Patel v. 7-Eleven that 7-Eleven franchisees are not employees of the franchisor under the independent contractor statute. The SJC looked beyond...more

Locke Lord LLP

Independent Contractor Misclassification Lawsuits Involve Record Label Artists, Imam, ‎and Recyclable Sorters: August 2024 IC...

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The legal developments in the area of independent contractor misclassification and compliance last month include cases against a record label company, an Islamic Center, and a waste recycling company. Lawsuits for IC...more

PilieroMazza PLLC

Call It What It Is: D.C. Cracks Down on Employee Misclassification in Construction

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Employee misclassification is an area of employment law that has steadily become a prominent subject of litigation in recent years. The decision of whether a specific worker is properly identified as an employee or...more

Fisher Phillips

Nursing Facilities Ordered to Pay $36M in Overtime Suit: 9 Wage and Hour Tips for Healthcare Employers

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A group of nursing facilities in Pennsylvania was recently ordered to pay a whopping $36 million in overtime pay and damages to workers who claimed their employers deliberately paid them less than they actually earned. After...more

Locke Lord LLP

Flawed Independent Contractor Pay Protection Law Disappeared But Will Make ‎Reappearance in New York on August 28, 2024‎

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On June 12, 2024, the U.S. Department of the Treasury’s Office of Foreign Assets Control (“OFAC”) issued a new Determination Pursuant to Section 1 (a)(ii) of Executive Order 14071 (the “Determination”)‎ that prohibits U.S....more

Parker Poe Adams & Bernstein LLP

First Circuit Reminds Employers That Inside Sales Positions Are Non-Exempt

We frequently encounter situations where employers classify their salesforce that primarily sells through telephone and internet means as salaried exempt employees, primarily for purposes of overtime and minimum wage payment...more

Locke Lord LLP

Customer Service Companies Using Independent Contractor Business Model Risk ‎Misclassification Liability: July 2024 IC Legal News...

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Last month, two key legal developments in the area of independent contractor misclassification and compliance highlighted the risks posed to customer service companies that use an independent contractor business model. The...more

Fisher Phillips

SCOTUS 2023/24 Lookback and Preview: 8 Key Rulings that Impact the Workplace and 4 New Cases for Employers to Track Next Term

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The Supreme Court issued several momentous decisions last term that will have a lasting impact on employer practices. The Justices continued to shape the workplace law landscape by ruling on an array of issues involving...more

Locke Lord LLP

Jurors Disagree on Whether Ride Share Drivers Are Independent Contractors or ‎Employees: June 2024 IC Legal News Update ‎

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Lawyers representing ride share drivers have argued for years that their clients are being misclassified as independent contractors under federal and state laws. They have attained little success, however, obtaining...more

Fisher Phillips

SCOTUS to Ponder Proof in Wage Misclassification Case: 5 Steps for Employers to Comply with Overtime Exemption Rules

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What evidence does an employer need to show a court to prove it correctly classified employees as exempt from minimum wage and overtime pay? The Supreme Court announced on June 17 that it will address a disagreement among...more

Arnall Golden Gregory LLP

AGG Talks: Cross-Border Business Podcast - What Foreign Investors Need to Know About U.S. Independent Contractor Laws

In this episode, Mike Burke, AGG Corporate partner and co-chair of the firm’s International Initiative, is joined by Megan Mitchell, AGG Employment Law partner, to discuss the complexities of classifying independent...more

Locke Lord LLP

Industries Counteract Class Action Independent Contractor Misclassification Claims: May ‎‎2024 IC Legal News Update‎

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Class action independent contractor misclassification cases continue to be filed and most seem to settle, often for large sums, as we have reported in our blog posts on legal developments each month. But some industries have...more

Pillsbury - Propel

Don’t Be Fooled: Employers Cannot Circumvent Wage and Hour Rules by Classifying Workers as Contractors!

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Although companies may be tempted to classify workers as contractors to circumvent wage and hour rules, this is the classic example of penny-wise and pound foolish. Misclassification of employees as contractors can lead to...more

Faegre Drinker Biddle & Reath LLP

2024 Faegre Drinker Legislative Session Recap

The 93rd Minnesota Legislature finished its business against a backdrop of chaos at midnight on Sunday, May 19, 2024, passing a 1430-page, 73-article omnibus bill that had been constructed earlier in the day. This massive...more

Locke Lord LLP

Can You Cover Independent Contractors With Workers’ Compensation Insurance?

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We are frequently asked by businesses about workers’ compensation coverage for independent contractors. Clients ask us: Can our company cover independent contractors with workers’ compensation insurance? Is it safer for us if...more

Littler

Effective July 1, Minnesota Employers Face Increased Scrutiny and Possible Liability for Using Independent Contractors Versus...

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Governor Tim Walz has signed into law significant changes to Minnesota’s independent contractor and employment laws.  Effective July 1, all employers, as well as their owners, risk significantly increased penalties for...more

Tucker Arensberg, P.C.

Considerations When Switching Independent Contactors to Employees

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Federal and state governments are engaging in heightened scrutiny of employer-independent contractor relationships. There is a concern that many workers have been misclassified as independent contractors (“IC”) when they are...more

Locke Lord LLP

Supreme Court FAA Decision Creates Even More Questions About Independent ‎Contractors and Arbitration: April 2024 IC Legal News...

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Is an independent food distributor exempt from an arbitration agreement under the interstate transportation worker exemption in the Federal Arbitration Act (FAA)? That was the question that the U.S. Supreme Court addressed in...more

Spilman Thomas & Battle, PLLC

Everything Old is New Again: The Department of Labor Returns to the Past with Independent Contractors

It has been said that if you wait long enough, everything comes back into fashion. This saying is true even for the U.S. Department of Labor (DOL), where on March 11, 2024, the DOL reverted back to the multifactor,...more

ArentFox Schiff

Top 10 Legal Challenges for Employers

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With 2024 underway, we highlight some of the most pressing legal issues facing employers this year, including increased regulation of noncompetition agreements, new paid family and medical leave laws, a new Overtime Rule, and...more

Morgan Lewis

US Supreme Court Clarifies Application of Federal Arbitration Act’s ‘Transportation Worker’ Exemption

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In Bissonnette v. LePage Bakeries, a unanimous Supreme Court clarified the scope of the Federal Arbitration Act’s (FAA’s) “transportation worker” exemption by rejecting the industry-based test applied in the Second Circuit....more

Cranfill Sumner LLP

Exception for “Transportation Workers” Under the Federal Arbitration Act Grows Larger

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The courts will generally enforce employee arbitration agreements via the Federal Arbitration Act (“FAA”). However, a “transportation workers” exemption exists under the FAA. On April 12, 2024, the United States Supreme Court...more

Brownstein Hyatt Farber Schreck

Employer Whiplash: Federal Agencies Flip-Flop on Two Federal Employment Rules

While federal regulations and rules shift under new administrations frequently, recent events related to two important employment rules mean they revert to prior versions, potentially exposing employers to legal liability if...more

Holland & Knight LLP

Food Delivery Drivers' Misclassification Suit May Be Exempt from Arbitration

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The U.S. Supreme Court decided Bissonnette, et al. v. LePage Bakeries Park St., LLC, et al. on April 12, 2024. In a unanimous decision written by Chief Justice John Roberts, the Court held that a transportation worker need...more

Amundsen Davis LLC

[Webinar] Independent Contractors in the Transportation Industry – Is Your Business Compliant? - May 15th, 10:00 am CT

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The Department of Labor (DOL) recently published a final rule on independent contractor classification under the Fair Labor Standards Act (FLSA). Transportation and logistics companies using independent contractors for...more

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