The most significant legal development in the past month in the area of independent contractor compliance was the enactment of California’s Freelance Worker Protection Act, which goes into effect on January 1, 2025. We have...more
Many commentators will likely suggest that the law involving independent contractor misclassification will become more favorable to businesses and less favorable to workers with a change in the White House. While things will...more
A recent decision by the National Labor Relations Board in a case involving workers who were classified by a company as independent contractors has provided a clear signal that the NLRB is likely to reverse its current law...more
Is independent contractor misclassification, standing alone, a violation of the National Labor Relations Act? Last month, the National Labor Relations Board issued a decision in a case involving workers who were found to be...more
One of the most important legal developments last month is a new lawsuit filed by registered nurses against a leading health care system alleging that they have been misclassified as independent contractors instead of...more
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
On June 12, 2024, the U.S. Department of the Treasury’s Office of Foreign Assets Control (“OFAC”) issued a new Determination Pursuant to Section 1 (a)(ii) of Executive Order 14071 (the “Determination”) that prohibits U.S....more
Last month, two key legal developments in the area of independent contractor misclassification and compliance highlighted the risks posed to customer service companies that use an independent contractor business model. The...more
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
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
We are frequently asked by businesses about workers’ compensation coverage for independent contractors. Clients ask us: Can our company cover independent contractors with workers’ compensation insurance? Is it safer for us if...more
Is an independent food distributor exempt from an arbitration agreement under the interstate transportation worker exemption in the Federal Arbitration Act (FAA)? That was the question that the U.S. Supreme Court addressed in...more
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
Two cases reported below in our review of legal developments in February 2024 address reclassification of independent contractors. The first case is one in which a state and county sought enforcement of California’s strict...more
On January 9, 2024, the same day the U.S. Department of Labor issued its final rule on independent contractor status, we published a comprehensive blog post analyzing and commenting on the new regulation, which goes into...more
As discussed in our QuickStudy of January 9, the U.S. Department of Labor has issued its long-awaited final rule setting forth its version of the test for independent contractor status under the federal Fair Labor Standards...more
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
It has been well over a year since the U.S. Department of Labor issued its proposed rule entitled “Employee or Independent Contractor Classification under the Fair Labor Standards Act.” The regulation was expressly intended...more
1/9/2024
/ Administrative Interpretation ,
Class Action ,
Corporate Counsel ,
Department of Labor (DOL) ,
Economic Realities Test ,
Employees ,
Employer Liability Issues ,
Fair Labor Standards Act (FLSA) ,
Final Rules ,
Independent Contractors ,
Misclassification ,
Wage and Hour
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
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
Companies can use two independent grounds to compel arbitration of independent contractor misclassification lawsuits: the Federal Arbitration Act (FAA) and state arbitration laws. The FAA, however, includes an exemption for...more
Companies using independent contractors have been worried that class action lawyers or a workforce agency will challenge their classification of workers as independent contractors. For the past dozen years, we have advised...more
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
It’s been almost a full year since the U.S. Department of Labor issued its proposed regulation entitled “Employee or Independent Contractor Classification under the Fair Labor Standards Act.” The proposed regulation was fully...more
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