News & Analysis as of

Misclassification Wage and Hour Employment Litigation

Locke Lord LLP

Independent Contractor Misclassification Lawsuits Involve Record Label Artists, Imam, ‎and Recyclable Sorters: August 2024 IC...

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The legal developments in the area of independent contractor misclassification and compliance last month include cases against a record label company, an Islamic Center, and a waste recycling company. Lawsuits for IC...more

PilieroMazza PLLC

Call It What It Is: D.C. Cracks Down on Employee Misclassification in Construction

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Employee misclassification is an area of employment law that has steadily become a prominent subject of litigation in recent years. The decision of whether a specific worker is properly identified as an employee or...more

Fisher Phillips

Nursing Facilities Ordered to Pay $36M in Overtime Suit: 9 Wage and Hour Tips for Healthcare Employers

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A group of nursing facilities in Pennsylvania was recently ordered to pay a whopping $36 million in overtime pay and damages to workers who claimed their employers deliberately paid them less than they actually earned. After...more

Fisher Phillips

SCOTUS 2023/24 Lookback and Preview: 8 Key Rulings that Impact the Workplace and 4 New Cases for Employers to Track Next Term

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The Supreme Court issued several momentous decisions last term that will have a lasting impact on employer practices. The Justices continued to shape the workplace law landscape by ruling on an array of issues involving...more

Locke Lord LLP

Jurors Disagree on Whether Ride Share Drivers Are Independent Contractors or ‎Employees: June 2024 IC Legal News Update ‎

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Lawyers representing ride share drivers have argued for years that their clients are being misclassified as independent contractors under federal and state laws. They have attained little success, however, obtaining...more

Fisher Phillips

SCOTUS to Ponder Proof in Wage Misclassification Case: 5 Steps for Employers to Comply with Overtime Exemption Rules

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What evidence does an employer need to show a court to prove it correctly classified employees as exempt from minimum wage and overtime pay? The Supreme Court announced on June 17 that it will address a disagreement among...more

Carlton Fields

Alabama Federal Court Seals and Approves FLSA Settlement Agreement, Addresses Confidentiality Provision

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The plaintiff was employed by defendant Pilot Catastrophe Services Inc. as an insurance claims adjuster, where she was responsible for inspecting property damage claims and providing damage estimates to insurance companies....more

Locke Lord LLP

Industries Counteract Class Action Independent Contractor Misclassification Claims: May ‎‎2024 IC Legal News Update‎

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Class action independent contractor misclassification cases continue to be filed and most seem to settle, often for large sums, as we have reported in our blog posts on legal developments each month. But some industries have...more

Carlton Fields

Federal Court Rejects Argument That Subsequent Opt-Out of Arbitration Clause Precluded Arbitration

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The U.S. District Court for the Northern District of Illinois has rejected an argument that opting out of arbitration clauses precluded arbitration under prior arbitration agreements in a dispute between Uber drivers and...more

Cranfill Sumner LLP

Exception for “Transportation Workers” Under the Federal Arbitration Act Grows Larger

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The courts will generally enforce employee arbitration agreements via the Federal Arbitration Act (“FAA”). However, a “transportation workers” exemption exists under the FAA. On April 12, 2024, the United States Supreme Court...more

Locke Lord LLP

Why Was a Carpenter Misclassified as Independent Contractor But a Truck Cleaner Was ‎Not? March 2024 IC Legal News Update

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Two court cases we summarize below, decided in March 2024, demonstrate that while some companies may prevail in an IC misclassification lawsuit, others do not. Why? As a starting point, the legal test for IC status under the...more

Locke Lord LLP

Case Establishing Strict New Jersey Test for Independent Contractor Status Finally ‎Resolved: January 2024 IC Legal News Update

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In early 2015, New Jersey borrowed the state’s strict ABC test under its unemployment law and adopted it as the new test for independent contractor status under its wage laws. That change in the law was not an act by the...more

Stikeman Elliott LLP

Meal Delivery Service’s Mandatory Arbitration Clause for Couriers Unconscionable: Manitoba Court of Appeal

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The Manitoba Court of Appeal (the “Court”) in Pokornik v. SkipTheDishes Restaurant Services Inc., 2024 MBCA 3, recently upheld a lower court decision dismissing a large online meal delivery service’s motion to stay a class...more

CDF Labor Law LLP

SCOTUS Set To Weigh In On Whether Courts May Dismiss Actions That Are Referred To Arbitration

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CDF Wage and Hour Task Force – Monthly Blog - Enforceable arbitration agreements continue to provide California employers who are faced with wage and hour claims with significant benefits....more

Locke Lord LLP

Even Clown Companies Are Targets of Independent Contractor Misclassification ‎Lawsuits: December 2023 IC Legal News Update

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We have had the opportunity, in the course of our independent contractor practice, to represent clients in over 75 diverse industries including some in rather esoteric businesses. These clients have included musical bands,...more

Constangy, Brooks, Smith & Prophete, LLP

It’s an election year. Be careful out there.

It’s an election year. Be careful out there. “A long time ago, in a galaxy far, far away,” I represented labor unions. Actually, it was more like 30+ years ago and a few miles down I-85 in Atlanta. Just like that opening...more

Locke Lord LLP

Independent Contractor Juxtaposition: November 2023 IC Legal News Update

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This past month, new independent contractor misclassification lawsuits were filed in Illinois, Maryland, New Jersey, and Washington by EMTs, cellular service “drive testers,” home health aides, and app-based couriers making...more

Locke Lord LLP

Mega-Settlements in Independent Contractor Misclassification Lawsuits: September 2023 IC Legal News Update

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Every so often a large settlement of a class action lawsuit reverberates in the independent contractor world – but last month there were two mega-settlements. The first was between Flowers Foods, a large nationwide baked...more

Lathrop GPM

First Circuit Certifies Second Employee Misclassification Question to Massachusetts Supreme Court in Ongoing 7-Eleven Case

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The First Circuit Court of Appeals recently certified to the Massachusetts Supreme Court the question of whether franchisee plaintiffs in an ongoing case pass the threshold inquiry under the state’s three-prong employee...more

Lathrop GPM

California Federal Court Declares Arbitration Clause Unenforceable

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In Munoz, v. Earthgrains Distribution, LLC, 2023 WL 5986129 (S.D. Cal. Sept. 13, 2023), the plaintiffs, members of a class of independent distributors of baked goods for Earthgrains and other bakeries, alleged that they were...more

Locke Lord LLP

New State Law Protecting Independent Contractors in Fee Disputes Can Lead To Hefty Damages: August 2023 IC Legal News Update

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Last month, Illinois became the first state to enact legislation requiring companies using independent contractors to offer contracts to ICs with prescribed terms and to pay such freelance contractors all of their fees within...more

Locke Lord LLP

Can Last-Mile and Logistics Companies Compel Arbitration of Independent Contractor ‎Misclassification Cases? July 2023 IC Legal...

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We report on three case developments during July 2023 that raise the question whether last-mile, logistics, and delivery companies alleged to have misclassified drivers as independent contractors can compel arbitration of...more

Quarles & Brady LLP

NLRB Takes Aim at Employers that Classify Workers as Independent Contractors

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In recent action, the National Labor Relations Board (“NLRB” or “Board”) has demonstrated a clear intention to closely scrutinize employers that classify workers as independent contractors. Specifically, in June, 2023, the...more

Locke Lord LLP

Another Unemployment Setback for Gig Economy Companies Using Independent ‎Contractors: April 2023 IC Legal News Update

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We reported in our October 10, 2022 blog post that Uber had agreed to pay $100 million in back unemployment taxes to the New Jersey Department of Labor for having classified drivers as independent contractors. Another state...more

Littler

Dutch Supreme Court Finds On-Demand Deliverers Are Not Self-employed

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The Dutch Supreme Court has just ruled that Deliveroo meal deliverers are not self-employed, but rather “regular” employees. With this decision the Supreme Court confirms the earlier judgments of the Cantonal Court and the...more

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