News & Analysis as of

Unpaid Overtime Misclassification Independent Contractors

Cozen O'Connor

IL AG Settles Employee Misclassification and Wage Theft Claims With Construction Company

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Illinois AG Kwame Raoul settled with TBJ Drywall & Taping, Inc. (TBJ), resolving allegations that the company misclassified employees and failed to pay overtime wages in violation of state labor and employment laws....more

Jackson Lewis P.C.

Lessons for Construction Industry in Labor Board’s New Test to Classify Independent Contractors

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The National Labor Relations Board (NLRB) has made finding independent contractor status harder under the National Labor Relations Act. The Atlanta Opera, Inc., 372 NLRB No. 95 (2023). This decision may significantly affect...more

Fisher Phillips

Florida Home Healthcare Worker Found to be Misclassified as Contractor – An Employer’s Survival Guide to Avoid Similar Fate

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In a stunningly broad ruling that should send shivers down the spine of every home healthcare agency that uses an independent contractor workforce, a Florida federal court ruled on April 12 that a home healthcare worker who...more

Fox Rothschild LLP

Costco Wins Independent Contractor Case: Is The Tide (Hopefully) Changing?

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There are so many independent contractor cases that go against the employers that when one goes the other way, it is a big deal. That is what has just happened with a Costco contractor who alleged the Company misclassified...more

McCarter & English, LLP

Massachusetts’ Strictest-In-The-Nation Definition Of “Employee” May Encompass Franchise Operators

When a worker is classified as an employee, a panoply of local, state, and federal laws regulate many facets of the relationship between the worker and the person or entity the worker serves. When a worker is not an...more

Sherman & Howard L.L.C.

High Daily Pay Rates Can Satisfy FLSA’s Salary Exemption

The U.S. District Court for the District of Colorado decided that a sufficiently high day rate, although not a “salary” per se, was sufficient to satisfy the “salary basis” requirement for the FLSA’s white collar exemptions....more

Bradley Arant Boult Cummings LLP

Sixth Circuit Scrubs Attempted Snub of Arbitration of Grubhub Paystub Hubbub

There have been many examples of the tension between the “gig economy” and traditional labor laws. Most of the companies like Uber or Grubhub choose to classify their drivers as independent contractors instead of employees,...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

Fisher Phillips

Oldest Nationwide Misclassification Case Against Uber Gets Settled For $1.3M

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The first-ever national misclassification case brought against Uber has now been put to bed. A federal court judge in North Carolina yesterday gave her blessing on a $1.3 million settlement wrapping up the litigation, handing...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

Fenwick & West LLP

GrubHub Prevails in Driver Classification Case, Ruling Offers Insights for On-Demand Economy

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In a long-awaited decision, a San Francisco federal judge ruled that GrubHub properly classified a delivery driver as an independent contractor. The Feb. 8 ruling sheds meaningful light on the prominent and heavily-litigated...more

Benesch

InterConnect FLASH! No. 65 - Shipper’s Control Over Courier’s IC Drivers Results in Adverse Joint Employer Ruling

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Recently the U.S. District Court for the Southern District of West Virginia determined that Co-Defendants, Omnicare, Inc. (“Omnicare”) and Act Fast Delivery of West Virginia, Inc. (“Act Fast”) were acting as joint employers...more

Epstein Becker & Green

The Ground Continues to Shift in Wage and Hour Law

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A year ago, employers across the country prepared for the implementation of a new overtime rule that would dramatically increase the salary threshold for white-collar exemptions, on the understanding that the new rule would...more

Fisher Phillips

Federal Court Provides Roadmap For Misclassification Success – Sort Of

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Ruling In Favor Of Independent Contractor Status Provides Boost To Gig Economy - A federal appeals court in New York handed a massive victory to a car service enterprise yesterday, ruling that a group of workers...more

Littler

These Foolish Things – The Oddest Employment Issues of the Past Year

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Even outside the Capital Beltway, this has been a strange year. Those of us who handle labor and employment issues everyday often think we’ve seen it all—only to be proven wrong time and again. As April Fools’ Day approaches,...more

Troutman Pepper

February 2017 Independent Contractor Misclassification and Compliance News Update

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Four of the eight court cases we report on below in our February 2017 monthly update of IC misclassification cases involve Uber, and each of those cases were victories for the ride-sharing, on-demand company. Although none of...more

Bass, Berry & Sims PLC

Chris Lazarini Examines Employee v. Independent Contractor Issue

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Bass, Berry & Sims attorney Chris Lazarini examined a case in which the plaintiff claimed to be an employee of Northwestern Mutual and therefore protected under New York's minimum wage and overtime laws; Northwestern argued...more

Troutman Pepper

January 2017 Independent Contractor Misclassification and Compliance News Update

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January was a busy month for independent contractor misclassification – and IC compliance. In addition to Lowe’s $2.85 million settlement with installers whom it classified as ICs, Lufthansa agreed to pay $1.1 million in...more

Troutman Pepper

New Uber Ruling Reveals Another Costly IC Misclassification Exposure for On-Demand Companies

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Gig economy companies based on an independent contractor model beware. On December 14, 2016, a federal court in Pennsylvania denied a motion to dismiss an “on-call” wage claim in a class action lawsuit filed against Uber by...more

Troutman Pepper

Your Own Agreements Can Be Your Worst Enemy in IC Misclassification Cases

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Companies that use independent contractors (ICs) typically require ICs to sign a contractor agreement prepared by the company. But, if it is drafted like the one reviewed in late September by the U.S. Court of Appeals for the...more

Troutman Pepper

October 2016 Independent Contractor Misclassification and Compliance News Update

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Our update for this past month is noteworthy for the fact that we report below on IC misclassification lawsuits plaguing some of the largest and most recognizable companies in the U.S. (like Uber, Amazon, and FedEx) as well...more

McAfee & Taft

Are you prepared for overtime regulations?

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On December 1, 2016, the U.S. Department of Labor’s new Fair Labor Standards Act overtime regulations will take effect. Millions of employees who are currently exempt will, for the first time, earn overtime for any hours...more

Laner Muchin, Ltd.

Increased Litigation Of Worker Misclassification Cases Should Place Employers On Notice Of Potential FLSA Violations

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Worker misclassification violations under the Fair Labor Standards Act (FLSA) continue to be at the forefront of the U.S. Department of Labor's (DOL) enforcement priority list and of the plaintiffs' bar, which has filed...more

Troutman Pepper

Amazon.com Hit With Independent Contractor Misclassification Class Action Lawsuit By Delivery Drivers

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Amazon is the latest tech company to be sued in a proposed class action by drivers delivering its products – in this case, goods to be delivered within two hours of being ordered through Amazon’s “Prime Now” app. The drivers...more

Baker Donelson

Start Planning for the Worst While You Hope for the Best

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For the past several months we have been updating you on the proposed changes to the Fair Labor Standards Act (FLSA) and the impact those changes could have on your workforce. The comment period for the proposed regulations...more

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