News & Analysis as of

Misclassification Employment Litigation

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

Troutman Pepper Locke

New Jersey Courts May Be Limiting the Labor Commissioner’s Effort to Curtail Independent Contractors in that State: October 2025...

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This month’s legal developments include a key case decided in New Jersey that supports a less stringent application of that state’s ABC test for independent contractor (IC) status. In late April 2025, the New Jersey Labor...more

Lathrop GPM

California Federal Court Denies Summary Judgment, Finding Release Unenforceable

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A federal court in California recently found that releases executed by former distributors were unenforceable and therefore denied a summary judgment motion filed by distributors Earthgrains Distribution, LLC and Bimbo...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

Cooley LLP

Superior Court Clarifies When Commissions Become ‘Wages’ Due Under the Massachusetts Wage Act

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A Massachusetts Superior Court recently addressed whether post-termination commissions contingent on future events qualify as “wages” under the state’s Wage Act law. In Ford v. Vacationeer, LLC, the court granted summary...more

Littler

When is a Contract for Services an Employment Contract in the Netherlands?

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A recent case in the Netherlands assessed whether a contract for services constituted an employment contract under Dutch law. In this case, an employer and an employee entered into a contract for services for certain work. At...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

Sheppard Mullin Richter & Hampton LLP

California’s 2024-2025 Legislative Session Closes with a Host of New Employment Laws for 2026

The 2024–2025 California legislative session came to an official close at midnight on October 13, 2025, when Governor Newsom’s deadline to sign or veto bills passed by the Legislature expired. Of the approximately 917 bills...more

Littler

Employee vs. Independent Contractor: Labels Don’t Control the Outcome, Says the Eleventh Circuit

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In assessing whether a worker is an employee or an independent contractor, the Eleventh Circuit recently re-confirmed that it “does not care about the label put on the relationship by the parties.” Galarza v. One Call Claims,...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

Cozen O'Connor

California AG Wins $10M Judgment in Workforce Misclassification Case

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California AG Rob Bonta secured a $10 million judgment and permanent injunction against Care Specialist HCS Inc. and its former and current owner-operators for illegally misclassifying hundreds of in-home care workers as...more

Chartwell Law

Disclaimer! Disclaimer!

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On September 8, 2025, the Court of Appeals of Georgia issued its decision in Bible v. City of Roswell, Case Nos. A25A0947, A25A0953, 2025 WL258 7397 (Ga. App. 2025). The case involved a class action by firefighters against...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

Proskauer - California Employment Law

Employer Properly Calculated Sick Leave For Exempt Employee

Hirdman v. Charter Commc’ns, LLC, 113 Cal. App. 5th 376 (2025) - Bradley Hirdman filed a lawsuit against his former employer (Charter Communications, LLC) alleging a violation of the Private Attorneys General Act (PAGA)...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

The Term “Exempt Employees” Under the HWHFA Applies to More than “White Collar” Exemptions When Calculating Paid Sick Time

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In Hirdman v. Charter Communication (8/4/25) 113 Cal.App.5th 376, the Fourth Circuit Court of Appeals was faced with the sole issue of determining the meaning of the phrase “exempt employees” as used in California Labor Code...more

Maynard Nexsen

Court of Appeals Upholds $9.3 Million Award for Nurses Misclassified as Independent Contractors by Healthcare Staffing Agency

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Companies often must determine whether to treat workers as employees or independent contractors. Workers who are properly classified as independent contractors are not subject to wage and hour laws requiring overtime pay or...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

Troutman Pepper Locke

Health Care Industry Under Attack for Independent Contractor Misclassification: July 2025 IC Legal News Update

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Unless you were in the health care industry, July 2025 was a relatively slow month for judicial developments in the law of independent contractor (IC) misclassification and compliance. Only two significant IC cases came to...more

Brooks Pierce

Fourth Circuit Affirms Multi-Million Dollar Decision, Underscoring Risks in Worker Misclassification

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Many businesses rely on independent contractors to stay flexible, control costs, and meet fluctuating demand, but misclassifying those workers can carry massive financial consequences. On July 17, 2025, the Fourth Circuit...more

Jackson Lewis P.C.

When ‘Independent Contractors’ Are Actually Employees: Lessons from the $9.3M Steadfast Medical Staffing Judgment

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The U.S. Court of Appeals for the Fourth Circuit recently affirmed a $9.3 million judgment against a medical staffing agency in a Department of Labor (DOL) Fair Labor Standards Act (FLSA) enforcement action alleging nurses...more

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