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Buchalter

Beauty is Pain: Lessons and Trends Impacting the Beauty Industry and Employment Law Concerns for 2025 and Beyond

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It was a normal, busy day at Young’s Nail Spa in Temecula, California, when the nail salon was abruptly hit with a $1.2 million fine by the California Labor Commissioner after an investigation found that 36 workers were...more

Locke Lord LLP

Due Diligence of a Target Company’s Independent Contractor Misclassification Risks by ‎Private Equity Firms

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Private equity firms regularly conduct due diligence of legal risks that could impact potential investments. Yet when considering whether to invest in a target company structured in whole or in part on an independent...more

Amundsen Davis LLC

National State Employment Law Update - November 2024

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In this brief update, we detail several changes impacting employers in jurisdictions across the nation. California- •California’s Department of Industrial Relations issued updated FAQs for the State’s Private Attorney...more

Jackson Lewis P.C.

New Jersey High Court’s Weichert Decision: Why Employers Should Review Their Independent Contractor Agreements Now

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New Jersey’s highest court has held that an agreement between a real estate brokerage and a real estate salesperson identifying the salesperson as an independent contractor excludes the salesperson from the New Jersey Wage...more

Locke Lord LLP

Newest State Independent Contractor Pay Protection Law Creates Uncertainties: October 2024 ‎IC Legal News Update

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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

Seyfarth Shaw LLP

Appellate Courts Restore a Measure of Sanity to Independent Contractor Classification Under Massachusetts’ Wage Law

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In a refreshing break for business in the Bay State, two recent appellate court decisions have confirmed that legitimate independent contractor relationships are alive and well in Massachusetts. Those decisions are Patel, et...more

Locke Lord LLP

Can Nurses Lawfully Be Classified as Independent Contractors? September 2024 IC Legal ‎News Update

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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

Fisher Phillips

7-Eleven Franchisees Are Not Employees Under Massachusetts Law: 5 Tips to Ensure Compliance After Latest Ruling

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The Massachusetts Supreme Judicial Court (SJC) just delivered a win for franchisor-franchisee relationships. Specifically, the court held that 7-Eleven franchisees are not performing a “service” for their franchisor, meaning...more

Constangy, Brooks, Smith & Prophete, LLP

Oh, thank heaven! 7-Eleven franchisees were not misclassified “employees,” MA high court rules

The Supreme Judicial Court of Massachusetts, answering a certified question, has ruled that five 7-Eleven franchisees were independent contractors, not misclassified “employees,” under the Massachusetts Independent Contractor...more

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

Massachusetts Supreme Judicial Court Clarifies Franchisee vs. Employee Classification

In the ever-evolving landscape of employment law, a recent Massachusetts Supreme Judicial Court (SJC) opinion, Patel v. 7-Eleven, Inc., has shed light on a critical question: When is a franchisee considered an employee of the...more

McGlinchey Stafford

Court Upholds Law Classifying App-Based Drivers as Independent Contractors: Does What Happens in California, Stay in California?

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The California Supreme Court recently upheld a California law that classifies drivers for app-based transportation companies, such as Uber, Lyft, or DoorDash, as independent contractors and not employees, provided the company...more

Fox Rothschild LLP

Proposition 22 Survives: App-Based Rideshare and Delivery Companies May Continue to Properly Classify Drivers as Independent...

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In a substantial win for app-based rideshare and delivery companies, the California Supreme Court unanimously upheld California Proposition 22 as constitutional on July 25, 2024. California Ballot Initiative Proposition 22...more

Proskauer - California Employment Law

California Supreme Court Delivers Big Win for Gig Companies

On July 25, 2024, the California Supreme Court upheld the constitutionality of Proposition 22, the law allowing gig economy workers to be classified as independent contractors. The decision ends a nearly four-year legal...more

Foley & Lardner LLP

California Supreme Court Upholds App-Based Driver Worker Classification Statute

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On July 25, 2024, the California Supreme Court issued an opinion upholding the statewide ballot measure that classifies app-based drivers as independent contractors. Voters passed the law (also known as Proposition 22) in...more

Amundsen Davis LLC

Challenges to Gig Worker Laws Are Spreading

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Several States and major U.S. Cities, including California, New York City and Seattle, have passed laws aimed at classifying “gig workers” as employees as opposed to independent contractors in recent years. Challenges to...more

Ervin Cohen & Jessup LLP

Department of Labor Revises Independent Contractor Test

On March 11, 2024, the U.S. Department of Labor’s (“DOL”) revised independent contractor test took effect, under a Final Rule issued by the Wage and House Division of DOL. The rule for Employee or Independent Contractor...more

Greenbaum, Rowe, Smith & Davis LLP

NJ Supreme Court Holds That NJ Wage Payment Law is Inapplicable to Real Estate Salesperson Who Has Independent Contractor...

On May 13, 2024, the New Jersey Supreme Court issued its decision in a class action lawsuit known as James Kennedy, II v. Weichert Co., conclusively finding that for the purpose of determining whether a real estate...more

Benesch

Ejected! California District Court Dismisses Trucking Industry’s New AB5 Challenge

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As March Madness gets underway, a California federal judge has called a flagrant foul and ejected the trucking industry from its ongoing battle to challenge Assembly Bill No. 5 (“AB5”)....more

Goodwin

Employment Status - A View From Both Sides of the Pond

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In recent years, employment status has been an evolving topic globally as various jurisdictions grapple with how to properly categorise increasingly flexible forms of working. A regulatory change in the United States by the...more

Locke Lord LLP

The Delicate Case for Reclassification of Independent Contractors: February 2024 IC ‎Legal News Update

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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

Tucker Arensberg, P.C.

Pennsylvania Targets Worker Misclassification: Steep Costs Await Uninformed Employers

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Pennsylvania is cracking down on misclassification of workers, and the costs to employers could be steep. Pennsylvania is placing an emphasis on employee classification. Recent investigations into misclassification have...more

Sheppard Mullin Richter & Hampton LLP

The Department of Labor Issues New Final Rule for Independent Contractor Classification

On January 10, 2024, the U.S. Department of Labor (“DOL”) published its final rule that revises its guidance regarding the standard for assessing whether a worker is an employee or independent contractor under the Fair Labor...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

Fenwick & West LLP

Department of Labor Finalizes Rule for Classifying Independent Contractors Under Fair Labor Standards Act

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On January 10, 2024, the U.S. Department of Labor released its final rule for determining worker classification under the Fair Labor Standards Act (“FLSA”). The final rule returns to the economic reality test historically...more

Steptoe & Johnson PLLC

Do You Still Need to Know Your ABCs? Not Under the DOL’s New Rule on Employees and Independent Contractors

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On January 10, 2024, the Department of Labor (DOL) published the long-awaited final rule titled, “Employee or Independent Contractor Classification Under the Fair Labor Standards Act” (the Rule), which provides new guidance...more

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