Earlier today, July 9, the New Jersey Misclassification Task Force issued its first Report. The Task Force, created by an Executive Order issued by Governor Phil Murphy on May 3, 2018, includes representatives from the New Jersey Labor, Treasury, and Law Departments as well as five other state agencies. The
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June 2019 Independent Contractor Misclassification and Compliance News Update
This past month was relatively uneventful in the area of independent contractor misclassification and compliance news, if one regards a $16.5 million settlement as unremarkable. But the amount of the settlements in IC misclassification cases appears to be increasing substantially. This $16.5 million settlement involves a very large logistics company…
Conducting Due Diligence for Independent Contractor Misclassification Liability: A Guide for Private Equity Firms and Their Portfolio Companies
The publisher of this legal blog and Matthew Kane, the General Counsel and Chief Compliance Officer of Z Capital Group, LLC, wrote an article as guest authors for Private Equity Law Report entitled “How to Evaluate Portfolio Companies for Independent Contractor Misclassification Liability.” The article, published on June 18, 2019,…
April and May 2019 Independent Contractor Misclassification and Compliance News Update
The past two months were two of the busiest ever in terms of judicial decisions involving claims of independent contractor misclassification, administrative and regulatory initiatives, and legislative developments. They are combined in this blog post.
Two of the most impactful cases involved Amazon and Jan-Pro, a nationwide commercial cleaning franchisor.…
Second Favorable Ruling for Insurance Companies on Independent Contractor Misclassification
Following on the heels of a very favorable decision by a federal appellate court earlier this year that insurance agents for American Family Insurance were not misclassified by the company as independent contractors in a class action brought under ERISA, a federal district court in New Jersey earlier this week…
Update on Uber: Company Announces It Is Settling Up to 60,000 Individual Arbitrations Alleging Independent Contractor Misclassification
Ride-sharing giant Uber Technologies announced by way of a filing today with the U.S. Securities and Exchange Commission that it has reached agreements to resolve the independent contractor (IC) classification claims of a large majority of the 60,000 drivers in the U.S. who have filed arbitration demands or indicated an…
Is There Anything New or Dramatically Different in the Labor Department’s Opinion Letter on Independent Contractor Status for On-Demand App-Based Service Providers?
Earlier today, the U.S. Department of Labor issued an Opinion Letter on the issue of independent contractor status of an on-demand virtual marketplace company (VMC) that refers end-market consumers to service providers who offer delivery, transportation, shopping, moving, cleaning, plumbing, painting, and household services. The Labor Department examined six factors…
March 2019 Independent Contractor Misclassification and Compliance News Update
Cases reported below for this past month show that large companies remain in the crosshairs of class action lawyers representing workers in independent contractor misclassification lawsuits. Two well-known industry leaders in the retail and insurance industries were sued in Texas and Illinois. The claim against the retailer alleges that it…
Impact of Proposed Joint Employer Rule on Independent Contractor Misclassification Claims
Companies that operate their businesses on an independent contractor model or supplement their workforce with ICs are likely to be asking, “Does the proposed new joint employer regulation issued by the U.S. Department of Labor have any impact on independent contractors?” The answer is yes.
While the Labor Department’s proposed…
A Tale of Two $100-Million Independent Contractor Misclassification Settlements
Yesterday, the first $100-million settlement of an independent contractor misclassification case suddenly became a $20-million deal, but on the same day a nine-figure settlement in another case took its place.
As reported in our blog post on April 22, 2016, Uber Technologies had reached a $100-million proposed settlement with about…