“Misclassification of employees as independent contractors” is now a common phrase uttered by state and federal legislators and regulators. State task forces have been formed to crack down on businesses that do not pay unemployment insurance and workers’ compensation premiums or withhold taxes for workers whom the states believe
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Company Wins Driver Class Action Alleging Independent Contractor Misclassification
By Richard Reibstein Esq. on
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Editors’ Note: The court decision by a federal district court that was the subject of this blog post was appealed to the U.S. Court of Appeals for the Third Circuit, which asked the New Jersey Supreme Court to articulate what test federal courts should use in determining the independent contractor…
The Fair Playing Field Act of 2012: Congress Is Trying Once Again to End ‘Safe Harbor’ for Businesses that May Have Misclassified Employees as Independent Contractors
By Richard Reibstein Esq. on
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U.S. Budget: Labor Department Gets Additional Funds to “Detect and Deter the Misclassification of Workers as Independent Contractors”
By Richard Reibstein Esq. on
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The Fiscal Year 2013 Budget was announced by President Obama on Monday, February 13. It once again includes special funding for the Labor Department to “detect and deter” companies from misclassifying employees as independent contractors. Specifically, on page 146 of the Budget for the Labor Department, President Obama commits $14…
California and U.S. Labor Department Enter into Memo of Understanding to Jointly Combat Independent Contractor Misclassification
By Richard Reibstein Esq. on
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In a news release issued earlier today, February 9, 2012, the California Labor Commissioner co-hosted a press teleconference with the Deputy Administrator of the U.S. Department of Labor during which they announced the signing of a memorandum of understanding between the two agencies focused on misclassification of employees as independent…
“Agency Operators” for Avis Budget Commence Class Action Lawsuit for Independent Contractor Misclassification
By Richard Reibstein Esq. on
Posted in Uncategorized
Last Friday, October 14, a group of 17 “agency operators” for jointly-owned Avis Rent a Car and Budget Rent a Car filed a class action class action complaint in California alleging that the rental car agencies misclassified them as independent contractors (ICs) instead of employees. Although the agency operators acknowledge…
Congress Reintroduces the “Employee Misclassification Prevention Act,” Which Would Create a Federal Offense for Misclassification of Employees as Independent Contractors
By Richard Reibstein Esq. on
Posted in Uncategorized
Following on the heels of aggressive new measures announced by the U.S. Department of Labor and IRS in the past month and the recent enactment of a new California law to crack down on willful misclassification of employees as independent contractors, Rep. Lynn Woolsey (D. Calif.) reintroduced, as H.R. 3178…
California Joins Growing Number of States to Enact Independent Contractor Misclassification Legislation: State adds new, costly penalties for willful misclassification, but protects the right of businesses to continue to legitimately use independent contractors
By Richard Reibstein Esq. on
Posted in Uncategorized
California joins a growing list of states that have enacted independent contractor misclassification legislation in the past four years. This new law, signed by Governor Jerry Brown on October 9, 2011, adds harsh financial penalties for companies and persons who engage in “willful misclassification” of employees as independent contractors,…
Cable Company’s Installers Were Misclassified as Independent Contractors: Another Business that Failed to Properly Structure and Document Its Independent Contractor Relationship
By Richard Reibstein Esq. on
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The U.S. Department of Labor recently scored a meaningful victory in yet another court case where a company failed to structure, document, and execute properly an independent contractor relationship with workers who were paid on a 1099 basis. In Hilda L. Solis, Secretary of Labor v. Cascom, Inc. and Julia…
U.S. Labor Department and IRS Sign Pacts to Coordinate Their Crack Downs on Independent Contractor Misclassification
By Richard Reibstein Esq. on
Posted in Uncategorized
On September 19, 2011, Secretary of Labor Hilda Solis and IRS Commissioner Doug Shulman signed a Memorandum of Understanding to coordinate both agencies’ law enforcement efforts aimed at businesses that misclassify employees as independent contractors. At a ceremony held at the Labor Department headquarters in Washington, Secretary Solis said, “We’re…