News & Analysis as of

Misclassification Fair Labor Standards Act (FLSA)

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

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

Cranfill Sumner LLP

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

Cranfill Sumner LLP on

Classifying a worker an “employee” versus an “independent contractor” is not as simple as checking whether they receive a W-2 or a 1099. The U.S. Department of Labor (DOL) uses the economic reality test to determine whether a...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

Three Wage-and-Hour Issues for Employers to Prioritize for 2026

As 2026 approaches, employers may want to assess the following wage-and-hour compliance issues: rising salary thresholds for overtime exemptions, widening gaps between federal and state minimum wage amounts, and increasingly...more

Cranfill Sumner LLP

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

Cranfill Sumner LLP on

Is Your Worker an Employee or an Independent Contractor? Determining whether a worker is an employee or an independent contractor is not just a matter of paperwork. It is a legal classification with significant...more

Thompson Coburn LLP

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

Thompson Coburn LLP on

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

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

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

Littler

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

Littler on

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

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

K&L Gates LLP

Navigating FLSA Overtime Exemptions in AI-Integrated Positions

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Over the past two years, the use of artificial intelligence (AI) by employees—especially within white-collar professions—has surged, with nearly twice as many workers now relying on AI tools for a portion of their daily...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

Conn Maciel Carey LLP

A Look at What’s Ahead for WHD per Spring 2025 Regulatory Agenda

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Last week, the Trump Administration published its 2025 Spring Regulatory Agenda, in which administrative agencies provide information on proposed regulatory and deregulatory actions. The Regulatory Agenda provides the public...more

Fisher Phillips

Employer Guide to Key DOL Proposals on Latest Regulatory Agenda

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The US Department of Labor (DOL) just released its latest semiannual regulatory agenda, and employers should tune in. The agency’s current proposals include high-priority actions related to joint employer determinations,...more

Maynard Nexsen

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

Maynard Nexsen on

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...

Whiteford on

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

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

Brooks Pierce

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

Brooks Pierce on

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

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

Jackson Lewis P.C.

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

Jackson Lewis P.C. on

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

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

Fisher Phillips

Return of the PAID Program: Here’s What Employers Need to Know as DOL Reinstates Back Wage Payment Option

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The US Department of Labor’s latest update rewards employers that proactively resolve potential wage and hour claims and obtain approval of their investigation and resolution. The DOL’s Wage and Hour Division first introduced...more

Troutman Pepper Locke

Home Improvement and Legal Services Industries Under Attack for Independent Contractor Misclassification Claims: June 2025 IC...

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Last month, there were only a couple of legal developments in the area of independent contractor (IC) compliance and misclassification, but they were significant because two more industries — home improvement and legal...more

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