News & Analysis as of

Misclassification Gig Economy

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

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

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

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

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

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

Troutman Pepper Locke

Comments Submitted to New Jersey’s Proposed Regulation Expanding “ABC Test for Independent Contractor Status”

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The following comments were submitted by Richard J. Reibstein, the publisher of this legal blog, critiquing the proposed regulation of the New Jersey Department of Labor and Industry (the Department) regarding the so-called...more

Venable LLP

A Glimmer of Hope for Employers Who Rely on Gig Workers: The DOL Will Not Enforce the 2024 Independent Contractor Rule

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Positive news for employers: the Department of Labor (DOL) announced it will no longer enforce the 2024 Biden-era independent contractor final rule that aimed to reclassify gig workers as employees rather than independent...more

Troutman Pepper Locke

Artificial Intelligence Industry Targeted for Independent Contractor Misclassification Lawsuits: May 2025 IC Legal News Update

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Five months ago, we reported about a class action lawsuit against an artificial intelligence (AI) company that engages workers to perform data labeling and content creation and classifies them as independent contractors (ICs)...more

Seyfarth Shaw LLP

New Jersey Eyes Regulatory Changes to Strengthen its Statutory ABC Test and Prevent Employee Misclassification

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On April 3, 2025, the New Jersey Department of Labor and Workforce Development (“DOL”) filed proposed new rules codifying its interpretation of the statutory ABC test to determine whether an individual is considered an...more

Troutman Pepper Locke

Republican-Backed Congressional Proposal in Congress Seeks to Allow Companies to Offer Benefits to Independent Contractors: April...

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Last month, the most significant legal development in the area of independent contractor (IC) compliance and misclassification was on Capitol Hill. Bill Cassidy of Louisiana, a Senate Republican who chairs the Senate Health,...more

Troutman Pepper Locke

Trump Administration Reissues 2019 Opinion Letter on Independent Contractors and Virtual Marketplace Companies

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The U.S. Department of Labor re-issued an Opinion Letter on the issue of independent contractor (IC) status of an on-demand virtual marketplace company (VMC) that refers end-market consumers to service providers who offer...more

Fisher Phillips

DOL Easing Up on Independent Contractor Misclassification Enforcement: 3 Key Points on This Big Win for Businesses

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Businesses that rely on freelancers or the “gig economy” have cause for optimism now that the Department of Labor just announced it will no longer enforce a Biden-era final rule that made it harder to classify workers as...more

Troutman Pepper Locke

Garden State May Soon Become Even Less Hospitable to Independent Contractors ‎Than the Golden State

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The New Jersey Department of Labor and Industry (the Department) announced on April 28, 2025, that it was filing a notice of a proposed regulation addressing the test for independent contractor (IC) status under New Jersey...more

Fisher Phillips

New EU Platform Work Directive Impacts Freelancers and Gig Economy: Here’s What Businesses Need to Know

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The European Union took a big step last year towards regulating digital labor platforms – and member states will need to adopt the new directive before the end of 2026. The directive seeks to curb worker misclassification,...more

Troutman Pepper Locke

The Legal Landscape of Independent Contractor Misclassification May Be About to Change: March 2025 IC Legal News Update

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The most significant development last month in the law of independent contractors was not one of the four cases we summarize below but rather a bill passed by the New York Senate. ...more

Foley & Lardner LLP

From the Pickup Line to the Picket Line: What Employers Need to Know About the Gig Economy Labor Movement

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The gig economy has emerged as a defining aspect of the modern workforce, transforming how people work, earn, and engage with employers. Unlike traditional full-time jobs, gig workers benefit from significant flexibility....more

Littler

Nebraska Enacts Marketplace Network Platform Statute

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On March 11, 2025, Nebraska passed a marketplace network platform statute that deems workers who use a marketplace network platform independent contractors under the state unemployment statute if certain conditions are met....more

BCLP

HK Court Rules That Gig Delivery Driver Was Not an Employee

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With the continued prevalence of the “gig economy”, a common question that arises is whether “gig workers” are employees or independent contractors of the digital platform. ...more

Troutman Pepper Locke

Federal Government’s Ping Pong Match on Independent Contractor Rule Is Distraction From Enhancing IC Compliance: January 2025 IC...

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Few federal regulations over the past five years have produced more needless concern by stakeholders than the independent contractor rules under the federal Fair Labor Standards Act (FLSA) issued by the different...more

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

It’s Official: The EU Platform Work Directive Is Here

The European Union’s (EU) Platform Work Directive went into effect on December 1, 2024, imposing significant new requirements on companies that facilitate work in the gig economy....more

Jones Day

Recent Amendments to Australia's Fair Work Act Impact Whether Independent Contractors Are Deemed "Employees"

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Recent amendments to the Fair Work Act 2009 (Cth) establishing a new "whole-of-relationship test" increase the likelihood that Australian businesses will face claims of "sham contracting" by misclassifying employees as...more

Seyfarth Shaw LLP

Appellate Courts Restore a Measure of Sanity to Independent Contractor Classification Under Massachusetts’ Wage Law

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In a refreshing break for business in the Bay State, two recent appellate court decisions have confirmed that legitimate independent contractor relationships are alive and well in Massachusetts. Those decisions are Patel, et...more

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