News & Analysis as of

Misclassification Wage and Hour

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)

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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)

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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

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

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

Thompson Coburn LLP

New California 2026 Minimum Wage Will Also Increase Salary Threshold for Many Exempt Employees

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Starting January 1, 2026, California’s minimum wage for non-exempt employees will increase from $16.50 to $16.90 per hour — a 2.49% increase over 2025 rates.  (Certain industries – fast food and health care – are already...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

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

Morgan Lewis

California Announces 2026 Increase in Computer Professional Exemption Compensation Rate

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California employers must ensure that compensation rates for computer professionals meet new compensation thresholds as of January 1, 2026. Each year, the California Department of Industrial Relations (DIR) sets the...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

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

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

Lathrop GPM

[Event] 2025 Employment & Labor Law Seminar - October 29th, San Jose, CA

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Join us for our annual employment law seminar—with a bold refresh—on Wednesday, October 29. Building on the strong foundation laid by Hopkins Carley, this year’s event will feature expanded content, breakout sessions, and a...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

Frost Brown Todd

Recent Amendments to the Colorado Wage Act: Stronger Employee Protections, Higher Stakes for Employers

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On August 6, 2025, various amendments to the Colorado Wage Act, § 8-4-101, et. seq. took effect and have important ramifications for Colorado employers. Among other changes, the amendments create new fines for employee...more

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