The most compelling news involving independent contractor compliance and misclassification last month was not a class action lawsuit or a government investigation but rather a government study released by the Bureau of Labor Statistics of the U.S. Department of Labor. The study, discussed in more depth below, covers the
Richard Reibstein Esq.
As a leading practitioner of enhancing independent contractor compliance and defending against misclassification claims, Richard represents large and small companies in administrative and judicial matters across the country, in addition to his labor/employment and noncompete/trade secrets practices.
Due Diligence of a Target Company’s Independent Contractor Misclassification Risks by Private Equity Firms
By Richard Reibstein Esq. on
Posted in Uncategorized
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 contractor (IC) business model, few PE firms consider IC misclassification exposure with a sufficient degree of…
How Health Care Systems Can Guard Against Independent Contractor Misclassification Liability for Contract Nurses
By Richard Reibstein Esq. on
Posted in Uncategorized
Businesses can learn quite a lot from a legal challenge faced by others in the same industry. Recently, we noticed that a large health care system operating in seven states west of the Mississippi had been sued in a class action for allegedly misclassifying registered nurses (RNs) as independent contractors…
Newest State Independent Contractor Pay Protection Law Creates Uncertainties: October 2024 IC Legal News Update
By Richard Reibstein Esq. on
Posted in Uncategorized
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 reported on freelance pay protection laws enacted recently in Illinois and New York,…
Federal Independent Contractor Law Will Hardly Be Impacted by a Change in Administration, and State IC Laws Will Continue to Be Vigorously Enforced
By Richard Reibstein Esq. on
Posted in Uncategorized
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 not likely get worse, they will not likely improve one iota.
Right now, under the Biden Administration,…
NLRB About to Rule That Independent Contractor Misclassification Alone Violates Law
By Richard Reibstein Esq. on
Posted in Uncategorized
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 misclassified by a company as independent contractors. While the NLRB did not answer the question above,…
Can Nurses Lawfully Be Classified as Independent Contractors? September 2024 IC Legal News Update
By Richard Reibstein Esq. on
Posted in Uncategorized
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 employees. The proposed class and collective action was filed late last month in a federal district…
Independent Contractor Misclassification Lawsuits Involve Record Label Artists, Imam, and Recyclable Sorters: August 2024 IC Legal News Update
By Richard Reibstein Esq. on
Posted in Uncategorized
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 misclassification come from a diverse array of workers because companies in an endless number of industries have adopted…
Flawed Independent Contractor Pay Protection Law Disappeared But Will Make Reappearance in New York on August 28, 2024
By Richard Reibstein Esq. on
Posted in Uncategorized
You may have wondered where New York’s so-called Freelance Isn’t Free Law went after it was enacted into law in November 2023. Well, it was repealed before it became effective and was replaced earlier this year with a new version of the same law. The 2024 edition becomes effective on…
Customer Service Companies Using Independent Contractor Business Model Risk Misclassification Liability: July 2024 IC Legal News Update
By Richard Reibstein Esq. on
Posted in Uncategorized
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 first involves a Colorado company using agents to provide customer support through an app-based platform. The company was sued in a proposed class and collective action lawsuit based on the allegation that the company misclassified the agents as ICs and not employees. The second involves a $3 million settlement between a nationwide customer service support company and the U.S. Department of Labor, which sued the company alleging it had misclassified as ICs the workers that provide customer service to its clients. Many companies in the customer service industry use an independent contractor business model. Workers in that type of trade or occupation usually can be classified legally as ICs under federal and most state laws if their relationships with the companies engaging their services is structured, documented, and implemented in a manner that enhances compliance with those laws. One way some companies have elevated their level of IC compliance is by a process such as IC Diagnostics (TM), a comprehensive system that minimizes IC misclassification liability in a customized and sustainable manner consistent with applicable laws.…