FedEx’s costs due to IC misclassification are approaching $500 million over the past year as a result of appellate court decisions that concluded that FedEx did not draft in a valid manner its IC agreement and internal policies governing Ground Division drivers. Last Friday, an Oregon federal judge approved a
Ride-Sharing Companies and IC Misclassification in New York
The New York Times today reported that the New York State Department of Labor has found two Uber drivers as eligible for unemployment benefits after having rejected the company’s argument that the drivers are independent contractors. Uber has so far avoided any judicial determinations that its drivers are employees and…
September 2016 Independent Contractor Misclassification and Compliance News Update
The past month’s judicial and administrative activity in the area of IC misclassification reflects the wide range of industries facing these types of claims: communications; cleaning services; transportation and delivery services; adult entertainment; hospitality; construction; and television production of professional sporting events. Almost all of these are industries that I…
Lessons Unlearned: Franchise and Independent Contractor Agreements Can Be Kiss of Death
On September 21, the U.S. Court of Appeals for the Third Circuit issued a stinging decision against commercial cleaning franchisor Jani-King, certifying a class action in an independent contractor (IC) misclassification case arising in the franchising context. Williams v. Jani-King of Philadelphia Inc., No. 15-2049 (3d Cir. Sept.…
August 2016 Independent Contractor Misclassification and Compliance News Update
This month’s news update includes four initiatives by the U.S. Department of Labor to combat IC misclassification. The first was the issuance of a new page on the DOL website called “Misclassification Mythbusters.” We critiqued the new DOL page in a blog post, pointing out that the DOL had…
NLRB General Counsel Creates a “Misclassification-Plus” Unfair Labor Practice
On August 26, 2016, the National Labor Relations Board made public an Advice Memorandum from the NLRB’s Office of General Counsel regarding an unfair labor practice case arising in the context of independent contractor misclassification. The Advice Memo has already been reported in the trade as ruling that the misclassification…
“Misclassification Mythbusters”: The Labor Department’s Latest Effort to Crack Down on Independent Contractor Misclassification
The U.S. Department of Labor has just released a dozen Q&A’s on the issue of IC misclassification in an online publication it calls “Misclassification Mythbusters.” The 12 IC misclassification “myths” that it seeks to debunk are intended to educate workers about their status as ICs and to foster …
$100 Million Independent Contractor Settlement Rejected by Judge; Misclassification Lawsuit to Proceed
Earlier today, Uber and its drivers were denied in their efforts to settle the IC misclassification lawsuits brought by Uber drivers in California and Massachusetts. As readers of this legal blog will recall from my post of April 22, 2016, Uber entered into a proposed settlement with counsel for the…
July 2016 Independent Contractor Misclassification and Compliance News Update
Four of the five independent contractor (IC) misclassification cases reported below from July 2016 illustrate how companies continue to fail to structure, document, and implement a business’s IC relationships in a manner that minimizes the likelihood of being targeted by class action lawyers and regulators. These four cases involve two…
New York Establishes a Super IC Misclassification-Plus Task Force
Yesterday, New York Governor Andrew Cuomo signed Executive Order No. 159 expanding the existing Joint Enforcement Task Force on Employee Misclassification into a Joint Enforcement Task Force on Worker Exploitation and Employee Misclassification. Those who follow IC misclassification developments in all 50 states, such as the publisher of this legal…