Recently, Mary Kay, Inc. was sued in New Jersey for allegedly misclassifying a class of direct sellers as independent contractors in violation of the New Jersey Wage Payment Law. While there are direct seller exemptions from laws governing unemployment insurance, workers’ compensation, and the payment and withholding of employment taxes,
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.
September/October 2015 Independent Contractor Compliance and Misclassification News Update
Judicial and regulatory developments in the months of September and October 2015 vividly highlight the fact that many companies in the U.S., both large and small, continue to fail to structure, document, and implement their IC relationships in a legally compliant manner – and thereby expose themselves needlessly to IC…
Amazon.com Hit With Independent Contractor Misclassification Class Action Lawsuit By Delivery Drivers
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 claim that they have been classified by Amazon and the…
August 2015 Independent Contractor Compliance and Misclassification News Update
August 2015 was not a vacation month for independent contractor cases. No less than seven major litigation events transpired this past month, highlighted by more of the same as well as some new developments. Several companies in different industries were subjected to judgments ranging as high as $5 million for…
Why a Court Ruled in Favor of Uber Drivers Today on Procedural Matter, And How Companies Can Minimize Future Misclassification Claims
Today Uber drivers were issued a favorable ruling by the federal district court judge hearing the independent contractor misclassification class action case brought by Uber drivers against the giant ride-sharing company in its own backyard in Northern California. But, there was little doubt as to how the court was likely…
Impact of NLRB’s Joint Employer Decision on Independent Contractors: State-of-the-Art IC Agreements Can Protect from Misclassification Liability
Few independent contractor agreements we have reviewed, even those of Fortune 500 companies, are relatively free from clauses that undermine the IC relationship because such agreements typically contain clauses that retain the company’s right to direct or control the manner and means of performing services. As discussed in my blog…
Even if Uber Drivers Prevail in Class Certification Motion Being Heard Today, Little Is Lost for Ride-Sharing Giant
On August 6, 2015, Uber drivers in California sought preliminary approval of their motion for class certification in their independent contractor misclassification lawsuit. A hearing was scheduled in the U.S. District Court for the Northern District of California before Judge Edward M. Chen on the drivers’ motion for class certification.…
Senate Democrats Re-Introduce the Payroll Fraud Prevention Act of 2015 Soon After Hillary Clinton Seeks to Insert IC Misclassification as an Election Issue in 2016
Shortly after Presidential candidate Hillary Clinton placed independent contractor misclassification in the national spotlight in mid-July 2015 when she prominently commented in a campaign speech upon the expanding use of ICs in the “gig economy,” it has been reported that Senators Bob Casey (D-PA) and Al Franken (D-MN) have introduced…
July 2015 Independent Contractor Compliance and Misclassification News Update
This July was another month where independent contractor compliance and misclassification was a topic that made front page news. Hillary Clinton placed independent contractor misclassification in the national spotlight when she prominently mentioned the expanding use of ICs in the “gig economy” as an issue in the upcoming election campaign.…
Homejoy’s Shutdown, Due to Misclassification Lawsuits, Likely to Propel Tech Start-Ups to Enhance Their Independent Contractor Compliance
Earlier today, Carmel DeAmicis of Re/code reported that Homejoy, the home cleaning start-up that uses independent contractors as their home cleaners, was closing down its operations due to four misclassification lawsuits filed against it. This is not the first company in the sharing economy using on-demand contract workers to alter…