On October 2, 2012, a class action lawsuit was filed against MHN Government Services and its parent, Managed Health Network (MHN), claiming that the government contractor misclassified over 1,200 employees as independent contractors and, as a result, failed to pay massive amounts of overtime pay required under the federal wage
Independent contractor misclassification
Insurance Company Wins Challenge to its Independent Contractor Relationship with Agent
By Richard Reibstein Esq. on
Posted in Uncategorized
Having previously prevailed in two prior challenges by agents who claim they were not independent contractors (ICs) but rather employees, an insurer wins for a third time in a lawsuit by a Washington State insurance agent.
Claiming he was misclassified as an IC instead of an employee, the agent brought…
White Paper: Independent Contractor Misclassification Update 2012 – How Companies Can Minimize the Risks
By Richard Reibstein Esq. on
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“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…
Company Wins Driver Class Action Alleging Independent Contractor Misclassification
By Richard Reibstein Esq. on
Posted in Uncategorized
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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IRS Confirms Valid Use of Independent Contractors
By Richard Reibstein Esq. on
Posted in Uncategorized
An IRS official noted that it is a valid business position to classify workers as independent contractors, so long as the business follows the law in making the classification. Anita Bartels, Program Manager for the IRS’s Employment Tax Compliance Policy section, speaking at the IRS’s Worker Classification webinar…
U.S. Budget: Labor Department Gets Additional Funds to “Detect and Deter the Misclassification of Workers as Independent Contractors”
By Richard Reibstein Esq. on
Posted in Uncategorized
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
Posted in Uncategorized
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…
Federal Appellate Court Rules that Massachusetts’ Anti-Independent Contractor Law Can Be Challenged by Delivery Companies
By Richard Reibstein Esq. on
Posted in Uncategorized
The Massachusetts Delivery Association (MDA) has succeeded in its appeal of a federal district court’s dismissal of its lawsuit to invalidate the Massachusetts Independent Contractor Law as an impermissible law “related to a price, route, or service of any motor carrier . . . with respect to the transportation of…
“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…