Last month saw large settlements and yet another new lawsuit against companies that have an independent contractor business model, but also success by such companies in obtaining a favorable jury verdict in an IC misclassification lawsuit and compelling arbitration of a lawsuit  and thereby avoiding a class action alleging misclassification…

There were several notable court and administrative cases over the past two months, but they were overshadowed by a legislative matter: the enactment of Assembly Bill 5 in California, which was the subject of our September 11, 2019 blog post entitled “How to Operate in California with Independent Contractors After…

The latest version of Assembly Bill 5, which codifies the California Supreme Court’s Dynamex decision that was issued in April 2018, is about to become law.  Dramatically changing decades of settled law in California, Dynamex created a so-called ABC test requiring companies to satisfy each of three strict criteria in…

The National Labor Relations Board earlier today held that a courier services company misclassified drivers as independent contractors instead of employees protected under the National Labor Relations Act.  The Board also held that the company violated the NLRA when it terminated its relationship with one of the couriers because of…

We are often asked, what industries are impacted by independent contractor misclassification?  While IC misclassification claims are most prevalent in the construction, transportation, and gig economy businesses, there are few, if any, industries that are immune from IC misclassification allegations.  This past month alone we report on class and collective…

Earlier today, July 9, the New Jersey Misclassification Task Force issued its first Report. The Task Force, created by an Executive Order issued by Governor Phil Murphy on May 3, 2018, includes representatives from the New Jersey Labor, Treasury, and Law Departments as well as five other state agencies. The…

This past month was relatively uneventful in the area of independent contractor misclassification and compliance news, if one regards a $16.5 million settlement as unremarkable. But the amount of the settlements in IC misclassification cases appears to be increasing substantially.  This $16.5 million settlement involves a very large logistics company…

The publisher of this legal blog and Matthew Kane, the General Counsel and Chief Compliance Officer of Z Capital Group, LLC, wrote an article as guest authors for Private Equity Law Report entitled “How to Evaluate Portfolio Companies for Independent Contractor Misclassification Liability.”  The article, published on June 18, 2019,…