Yesterday, the lawyers representing drivers who have sued Uber in California commenced another lawsuit on behalf of drivers alleging that the company misclassified them as independent contractors instead of employees. This lawsuit, though, is not against the company itself; rather, it is against Travis Kalanick, the former CEO and a
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Labor Department Withdraws Independent Contractor Misclassification Guidance Issued in 2015: What Does this Mean for Businesses Using ICs?
Earlier today, the U.S. Department of Labor issued a short, 3-sentence News Release where the recently-confirmed Labor Secretary, Alexander Acosta, announced that he has withdrawn the Labor Department’s formal guidance on two key issues facing businesses: joint employment and independent contractors. The first guidance on joint employment, which was issued…
April 2017 Independent Contractor Misclassification and Compliance News Update
April was a red-hot month for independent contractor misclassification cases. We report below on 10 cases in the courts and two before administrative agencies involving:
- seven-figure proposed class action settlements with couriers providing services to three on-demand delivery companies (PostMates, DoorDash, and InstaCart);
- court approvals of a nine-figure settlement between
…
February/March 2017 Independent Contractor Misclassification and Compliance News Update
February 2017
[Publisher’s Note: The original February 2017 monthly update was corrupted; accordingly, it is placed in this combined February/March 2017 update of monthly IC developments.]
Three of the seven court cases I report on below in my February 2017 monthly update of IC misclassification cases involve Uber, and each…
Spoiler Alert: Rulings Expected on Ride-Sharing Companies’ Independent Contractor Settlements
Judges in California will likely soon issue rulings affecting two ride-sharing companies, Uber and Lyft. Those connected with the Lyft case will be pleased because it is expected that a federal district court judge in San Francisco will formally approve a $27 million settlement in an independent contractor misclassification case…
December 2016 Independent Contractor Misclassification and Compliance News Update
In my update below for last month’s developments in this area of the law, I report on five significant court cases involving companies in the transportation industry that use ICs as an integral part of their business model. Each of the cases suggests rough sailing for such businesses if they…
The Labor Department’s New Independent Contractor Misclassification Web Page: While It Is Likely To Confound Viewers, It May Prompt Workers to File Complaints and Businesses to Enhance Their IC Compliance
The U.S. Department of Labor earlier today reissued its resources on independent contractor misclassification and grouped them together with resources from other federal and state agencies on the subject. This appears to be the Labor Department’s effort to create a type of one-stop shopping page for government materials on independent…
Trump’s Impact on Independent Contractor Misclassification: States will Likely Increase Enforcement After Feds Dial Down Theirs
In the past eight years, the Obama Administration has spearheaded enforcement initiatives on independent contractor misclassification through the U.S. Department of Labor and the IRS. That crackdown, however, seemed to be focused on the low-hanging fruit – companies that often had little or no defense to the claim that they…
October 2016 Independent Contractor Misclassification and Compliance News Update
My update for this past month is noteworthy for the fact that I report below on IC misclassification lawsuits plaguing some of the largest and most recognizable companies in the U.S. (like Uber, Amazon, and FedEx) as well as a small local business like a New York City yoga studio. …
New York’s Highest Court Issues IC-Friendly Ruling, Holding That Certain Yoga Teachers Are Valid Independent Contractors
Earlier today, October 25, 2016, the New York Court of Appeals issued an important decision on the issue of independent contractor status. The Court held that a group of yoga instructors working at a New York City yoga studio were not employees covered by the New York Unemployment Insurance Law…