News & Analysis as of

Summary Judgment Misclassification

Foley & Lardner LLP

Franchisor Victorious in Employment Misclassification Case

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A federal court in Massachusetts granted summary judgment in favor of a franchisor in a long-running case against its franchisees. In Patel et al. v. 7-Eleven, Inc., five 7-Eleven store owners brought suit claiming 7-Eleven...more

Perkins Coie

Rare Employer Victory in CA Misclassification Case

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A unanimous three-judge panel reached a decision in the case of Bijon Hill v. Walmart. Last week, the U.S. Court of Appeals for the Ninth Circuit affirmed that Walmart classified a freelance model, Bijon Hill, as an...more

Lewitt Hackman

Franchisee 101: Jani-King Franchisees Wear Many Crowns

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Past and present franchisees of commercial cleaning service franchisor, Jani-King, brought claims for violation of Connecticut minimum wage and anti-kickback laws, and unjust enrichment. They claimed Jani-King misclassified...more

Foley & Lardner LLP

Federal Court Denies Class Certification of 7-Eleven Franchisees in Misclassification Suit

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A recent decision from a federal court in Massachusetts is a significant victory for franchisors who continue to face lawsuits alleging they have misclassified their franchisees as independent contractors rather than...more

FordHarrison

Fifth Circuit Provides Positive Guidance on Independent Contractor Classification

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Applying the “economic realities” test, the Fifth Circuit (with jurisdiction over federal courts in Louisiana, Mississippi, and Texas) recently held that a consultant for an oil and gas company was not subject to FLSA...more

Seyfarth Shaw LLP

An Employee Not Actually Engaged in the Company’s Core Function—its Primary Revenue Generator—Can Be Administrative Exempt

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Seyfarth Synopsis: In a clarification of the administrative/production dichotomy, the U.S. Circuit Court of Appeals for the Seventh Circuit has held that whether a duty is exempt under the FLSA’s administrative exemption may...more

Seyfarth Shaw LLP

2nd Cir. Rules Utilization Reviewer Was Exempt “Professional”

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Seyfarth Synopsis: The Second Circuit has affirmed summary judgment for the employer, Aetna, in an exempt misclassification overtime claim brought by a nurse reviewer. Agreeing that the plaintiff was properly classified as a...more

Ballard Spahr LLP

NJ DOL Bills Uber $650M for Misclassified Drivers

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The New Jersey Department of Labor (NJ DOL) billed Uber Technologies, Inc. and a subsidiary $650 million for past-due taxes, interest, and penalties due to an alleged misclassification of its drivers as independent...more

Jackson Lewis P.C.

Day Rate Satisfies FLSA’s Highly Compensated Employee Salary Requirement, Fifth Circuit Rules

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Paying an employee a day rate of $1,000 per day satisfies the salary basis test for purposes of the overtime exemption applicable to a “highly compensated employee” (HCE) under the Fair Labor Standards Act (FLSA), the U.S....more

Genova Burns LLC

New Jersey District Court Rules Insurance Agents Appropriately Classified as Independent Contractors

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In a state where the independent contractor model is under attack and squarely in the crosshairs of multiple enforcement agencies, a New Jersey federal court refused to allow independent insurance agents to convert their...more

Holland & Knight LLP

Ninth Circuit: Dynamex "ABC" Test Unquestionably Applies Retroactively

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A panel of the U.S. Court of Appeals for the Ninth Circuit issued its decision in Vazquez et al. v. Jan-Pro Franchising Int'l., Inc., No. 17-16096 (Jan-Pro) on May 2, 2019, holding that the recently adopted, three-pronged...more

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

Fifth Circuit Holds Directional Drillers Are Independent Contractors

The U.S. Court of Appeals for the Fifth Circuit recently held that a group of directional driller consultants were independent contractors, not employees, in large part due to their highly specialized skills, degree of...more

Payne & Fears

Key California Employment Law Cases: October 2018

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This month’s key employment law cases address the test for independent contractor status, the legality of an incentive compensation system, and personal liability for wage and hour violations....more

Fisher Phillips

The Ghost of Borello Returns This Halloween! Court Holds Dynamex ABC Test Applies Only to Wage Order Claims

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As we have covered extensively, the California Supreme Court dropped a proverbial bomb earlier this year in the Dynamex case when it adopted a new legal standard known as the “ABC Test,” making it much more difficult for...more

Sheppard Mullin Richter & Hampton LLP

California Court of Appeal Affirms That Dynamex’s ABC Independent Contract Test Is Limited To Claims Arising Under Wage Orders

In Jesus Cuitlahuac Garcia v. Border Transportation Group, LLC, et al, the California Court of Appeal, Fourth Appellate District has held that the ABC test set forth in Dynamex Operations West, Inc. v. Superior Court, 4...more

Sheppard Mullin Richter & Hampton LLP

Uber Drivers’ Class Action Lawsuit Hits Permanent Red Light

Last week, the ridesharing giant, Uber, secured a resounding legal win when a federal judge dismissed a putative class action lawsuit alleging the company violated the Fair Labor Standards Act by failing to pay drivers...more

Troutman Pepper

Judge Holds UberBLACK Drivers Are Independent Contractors, Not Employees

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On April 11, Judge Michael Baylson of the U.S. District Court for the Eastern District of Pennsylvania became the first judge to grant summary judgment on the issue of whether UberBLACK drivers are employees or independent...more

Fisher Phillips

Glimmers of Hope? Pair of Recent PAGA Cases Provide Rare Procedural Victories for California Employers

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If you’re a California employer, perhaps no single law strikes fear into your heart quite as much as the Labor Code Private Attorneys General Act of 2004 (PAGA). PAGA allows individual “aggrieved employees” to bring...more

Proskauer - California Employment Law

California Employment Law Notes - January 2018

Trial Court Erroneously Granted Bill Cosby's Anti-SLAPP Motion - Dickinson v. Cosby, 17 Cal. App. 5th 655 (2017) - After Janice Dickinson went public with her accusations of rape against Bill Cosby, Cosby's attorney...more

Troutman Pepper

December 2016 Independent Contractor Misclassification and Compliance News Update

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In our update for last month’s developments in this area of the law, we report on five significant court cases involving companies in the transportation industry that use ICs as an integral part of their business model. Each...more

Troutman Pepper

Uber Suffers Another Independent Contractor Misclassification Setback in California

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Uber has not fared well in court battles recently. After losing an unemployment case last month in Florida, it has now just lost an independent contractor misclassification wage case in California. This loss in California...more

Littler

Third Circuit Upholds the Motor Carrier Exemption for Drivers Who Did Not, But Reasonably Could Have Been Expected to, Cross State...

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Are drivers of a motor carrier who rarely or never drive the carrier's interstate routes covered by the motor carrier exemption of the Fair Labor Standards Act?  Yes, according to the U.S. Court of Appeals for the Third...more

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