News & Analysis as of

Misclassification Enforcement Actions

Stikeman Elliott LLP

Budget 2025: Ottawa Moves to Ban Non-Competes and Tighten Worker Classification Rules

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On November 4, 2025, amidst a period of subdued economic growth and international trade friction, the Minister of Finance and National Revenue François-Philippe Champagne tabled the federal budget (“Budget 2025”) entitled...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

Hall Benefits Law

Lyft Pays $19.4 Million to NJ Attorney General’s Office for Driver Misclassification

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The New Jersey Attorney General’s Office has announced that Lyft has paid off the $19.4 million it owed to the state for misclassifying drivers as independent contractors....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

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

Stevens & Lee

NJDOL Continues Its Legal Challenge on the Independent Contractor Model

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The New Jersey Department of Labor and Workforce Development (NJDOL) has, through regulations and practices, used its powers to attempt to challenge the independent contractor model by deeming drivers who own their own trucks...more

Troutman Pepper Locke

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

Troutman Pepper Locke on

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

Cozen O'Connor

The State AG Report – 10.09.2025

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Here are curated AG and federal regulatory news stories highlighting key areas in which state and federal regulators’ decisions are having an impact across the US: • Kansas AG Crackdown on Illegal Sales of THC Products - •...more

Cozen O'Connor

California AG Wins $10M Judgment in Workforce Misclassification Case

Cozen O'Connor on

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

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

Whiteford

Employment Law Update: Home Healthcare Companionship Exemption – Is It Back?

Whiteford on

Home healthcare employers – take note. The U.S. Department of Labor’s Wage and Hour Division (WHD) issued Field Assistance Bulletin No. 2025-4 on July 25, 2025 (FAB), announcing that it will immediately stop enforcing the...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

Kerr Russell

Wage and Hour Self-audit Program May Allow Employers to Correct Wage Errors

Kerr Russell on

Many employers unknowingly classify employees as exempt from overtime pay or fail to correctly calculate wages and, in some cases, entitlement to unpaid leave time. This can result in significant liability under the Fair...more

Buchalter

Colorado Cracks Down: New Wage Law Brings Big Changes for Employers Starting August 6, 2025

Buchalter on

On May 22, 2025, Colorado House Bill 25-1001 was signed into law, which amends the Colorado Wage Claim Act, C.R.S. § 8-4-101, et seq. As a result, August 6, 2025, marks the start of new compliance obligations that...more

Constangy, Brooks, Smith & Prophete, LLP

Fourth Circuit’s Steadfast ruling clarifies independent contractor status

The majority of a three-judge panel of the U.S. Court of Appeals for the Fourth Circuit has upheld a finding that a medical staffing agency misclassified approximately 1,100 nurses as independent contractors and owed them...more

Fox Rothschild LLP

Colorado Raises the Stakes for Compliance with the Colorado Wage Act

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Colorado is raising the stakes for employers when it comes to compliance obligations and increased enforcement with the enactment of House Bill 25-1001 (the Law). The Law amends the Colorado Wage Act and goes into effect...more

Cranfill Sumner LLP

We Can Work It Out: U.S. Department of Labor Pauses Reliance on 2024 Independent Contractor Rule in its Enforcement of Independent...

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The U.S. Department of Labor (DOL) is again signaling changes in how it will evaluate independent contractor relationships in its enforcement actions. In 2024, the department issued a final rule that revised the standards...more

Bass, Berry & Sims PLC

DOL Announces Enforcement Position on Independent Contractor Rule

Bass, Berry & Sims PLC on

On May 1, the U.S. Department of Labor (DOL) issued a Field Assistance Bulletin announcing that the Wage and Hour Division (WHD) will no longer enforce the 2024 independent contractor Final Rule previously established by the...more

Harris Beach Murtha PLLC

DOL Pauses Enforcement of 2024 Rule on Independent Contractor Classifications

In February 2024, we reported the U.S. Department of Labor (DOL) issued a Final Rule revising the DOL’s guidance on how to analyze who is an employee or independent contractor for purposes of minimum wage and overtime pay...more

McAfee & Taft

Gavel to Gavel: It just got easier to classify workers as independent contractors

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Surging changes to workplace laws understandably have employers suffering from whiplash. Historically, employment laws have shifted when presidential administrations have changed. A May 1 announcement by the U.S. Department...more

Saiber LLC

NJ DOL Proposes New Rules Clarifying the ABC Test for Independent Contractors

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The New Jersey Department of Labor and Workforce Development (NJDOL) recently issued proposed regulations aimed at clarifying how employers should apply the “ABC test” to determine whether a worker is properly classified as...more

Whiteford

Employment Law Update: U.S. Department of Labor Resurrects Guidance Classifying Workers as Independent Contractors

Whiteford on

The U.S. Department of Labor’s Wage and Hour Division (“DOL”) under the Trump administration has doubled down on its commitment to the traditional economic-realities analysis for determining whether workers are employees or...more

McAfee & Taft

DOL signals return to employer-friendly worker classification standards

McAfee & Taft on

Surging changes to workplace laws understandably have employers suffering from whiplash. Historically, employment laws have shifted when presidential administrations have changed. A May 1, 2025, announcement by the U.S....more

Polsinelli

DOL Abandons 2024 Independent Contractor Test

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What You Need to Know - The U.S. Department of Labor has announced it will no longer enforce the 2024 independent contractor rule under the Fair Labor Standards Act (FLSA), reverting to the more employer-friendly 2008...more

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