This past month was the first month we can recall where there were no legal developments of note involving class action independent contractor misclassification lawsuits, which have become increasingly prevalent. Instead, the two top cases reported below are decisions by federal appellate courts in single plaintiff IC misclassification lawsuits: one where the U.S. Court of Appeals for the Third Circuit concluded that sales marketers for roofing companies had been misclassified under a Pennsylvania wage payment law, and the other where the Fifth Circuit held that a highly paid legal consultant seeking overtime pay under the federal wage and hour law had been properly classified as an IC.
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New Joint Employer Rule Will Impact Independent Contractor Misclassification Claims
Many companies that operate their businesses on an independent contractor model or supplement their workforce with ICs may be wondering if they will be impacted by the U.S. Department of Labor’s final rule on joint employer status, which was informally released today. They are likely asking, “Does this final rule have any bearing on independent contractors?” The answer is yes.…
November and December 2019 Independent Contractor Misclassification and Compliance Law News Update
Our combined news update provides guidance for companies that utilize independent contractors on what not to do. The first lesson involves a company’s waiver of its best argument for compelling arbitration of an IC misclassification claim. As we pointed out in our blog post analyzing the U.S. Supreme Court’s decision…
The Past Decade of Independent Contractor Misclassification and Compliance Law
Ten years ago, when we began a legal blog dedicated to independent contractor compliance and misclassification, the landscape of the law involving ICs was quite different than today – although a great deal remains unchanged. We summarize below over 250 comprehensive blog posts published over the past ten years dealing…
A Solution to the “Five Degrees of Independent Contractor Misclassification”
“Independent contractor misclassification” is a phrase that is misunderstood, misapplied, and misused – constantly. It is used to cover an array of disparate forms of IC misclassification: unpardonable; uninformed; unprepared; unintentional; and unjust. [1]…
October 2019 Independent Contractor Misclassification and Compliance News Update
Last month saw large settlements and yet another new lawsuit against companies that have an independent contractor business model, but also success by such companies in obtaining a favorable jury verdict in an IC misclassification lawsuit and compelling arbitration of a lawsuit and thereby avoiding a class action alleging misclassification…
August and September 2019 Independent Contractor Misclassification and Compliance News Update
There were several notable court and administrative cases over the past two months, but they were overshadowed by a legislative matter: the enactment of Assembly Bill 5 in California, which was the subject of our September 11, 2019 blog post entitled “How to Operate in California with Independent Contractors After…
How to Operate in California with Independent Contractors After AB5 Bill Is Signed Into Law
The latest version of Assembly Bill 5, which codifies the California Supreme Court’s Dynamex decision that was issued in April 2018, is about to become law. Dramatically changing decades of settled law in California, Dynamex created a so-called ABC test requiring companies to satisfy each of three strict criteria in…
NLRB Finds Couriers Were Misclassified As Independent Contractors, But Rejects Argument That Misclassification Is a “Stand-Alone” Violation of the Law
The National Labor Relations Board earlier today held that a courier services company misclassified drivers as independent contractors instead of employees protected under the National Labor Relations Act. The Board also held that the company violated the NLRA when it terminated its relationship with one of the couriers because of…
July 2019 Independent Contractor Misclassification and Compliance News Update
We are often asked, what industries are impacted by independent contractor misclassification? While IC misclassification claims are most prevalent in the construction, transportation, and gig economy businesses, there are few, if any, industries that are immune from IC misclassification allegations. This past month alone we report on class and collective…