Cases reported below for this past month show that large companies remain in the crosshairs of class action lawyers representing workers in independent contractor misclassification lawsuits. Two well-known industry leaders in the retail and insurance industries were sued in Texas and Illinois. The claim against the retailer alleges that it
Impact of Proposed Joint Employer Rule on Independent Contractor Misclassification Claims
Companies that operate their businesses on an independent contractor model or supplement their workforce with ICs are likely to be asking, “Does the proposed new joint employer regulation issued by the U.S. Department of Labor have any impact on independent contractors?” The answer is yes.
While the Labor Department’s proposed…
A Tale of Two $100-Million Independent Contractor Misclassification Settlements
Yesterday, the first $100-million settlement of an independent contractor misclassification case suddenly became a $20-million deal, but on the same day a nine-figure settlement in another case took its place.
As reported in our blog post on April 22, 2016, Uber Technologies had reached a $100-million proposed settlement with about…
February 2019 Independent Contractor Misclassification and Compliance News Update
One need only glance at the court cases we report on below to understand why some businesses choose to settle independent contractor misclassification cases. Three of these cases highlight the unpredictable approaches appellate courts have taken in deciding IC misclassification cases.
To illustrate, in February, one federal appellate court reversed…
January 2019 Independent Contractor Misclassification and Compliance News Update
This past month may well be regarded as one of the more legally satisfying for businesses using independent contractors. Courts issued three decisions in favor of companies on the issue as to whether certain workers are ICs or employees: the U.S. Court of Appeals for the Sixth Circuit found insurance…
Insurance Agents Not Misclassified As Independent Contractors; Sixth Circuit Rules in Favor of Insurance Company in ERISA Class Action Seeking Pension, Life, and Health Benefits
For the past 18 months, insurance companies have been holding their collective breath to see if an appellate court would affirm or reverse an Ohio federal district court decision concluding that thousands of current and former agents for American Family Insurance Company were employees and not independent contractors under ERISA,…
NLRB Issues Franchise-Friendly, Pro-Independent Contractor Ruling; New Test for IC Status Raises Bar for Unions Alleging IC Misclassification
Earlier today, the National Labor Relations Board issued a decision overturning a union-friendly test for independent contractor status that had been adopted by the Board during the Obama Administration. In its decision in SuperShuttle DFW Inc., the NLRB, which is now controlled by a majority of Board members appointed by…
Supreme Court Decision in “New Prime” May Have Limited Impact on Independent Contractor Misclassification Claims, Despite Some Commentators’ Exuberance and Others’ Despair
Shortly after the issuance of the Supreme Court’s decision earlier today in New Prime Inc. v. Oliveira, some commentators have referred to it as a watershed opinion preserving the right of workers including independent contractors to have their class action cases heard in court instead of before an arbitrator. Others…
Is Your Company on an Independent Contractor Misclassification “Hit List”?
As reported six months ago in an article in the E&P Journal, the oil and gas industry is one of those that is under attack by plaintiffs’ class action lawyers filing independent contractor misclassification lawsuits. My colleagues Bill Swanstrom and Mike Rose joined me then in commenting on some…
December 2018 Independent Contractor Misclassification and Compliance News Update
There were only a handful of independent contractor misclassification cases of significance in December and each of those matters relates to the subject of prior comprehensive posts on this blog.
The first involved FedEx Ground, which has paid hundreds of millions of dollars to settle dozens of class action lawsuits…