This month’s headline developments are a set of cases reported in February dealing with class action IC misclassification claims: the highest court in a key state agreeing to decide whether a worker-friendly test should be used in determining the IC status of a group of workers asserting minimum wage and
Uncategorized
Even an Exotic Dance Club (a.k.a. Strip Joint) Can Comply with Independent Contractor Laws – And Avoid or Defend Against Class Actions
A number of my blog posts since October 2010, including my monthly updates beginning in November 2012, have included reports on hundreds of class action lawsuits including those by exotic dancers against strip clubs. This industry has, by far, the most reported lawsuits involving allegations and findings of independent contractor…
133,000 Misclassified Workers Detected in New York in the Course of 12,000 Audits and Investigations in 2014, According to the State’s Newest Task Force Report on Employee Misclassification
On February 1, 2015, the Joint Enforcement Task Force on Employee Misclassification issued its Annual Report. The Report noted that the New York Task Force members in 2014 conducted over 12,000 audits and investigations, resulting in detection of employee misclassification involving over 133,000 workers. Those and other enforcement efforts in…
The 2016 Federal Budget: Targeting Independent Contractor Misclassification as Part of the “Fissured Workplace”
The President released his Fiscal Year 2016 Budget today, February 2, 2015. In furtherance of the President’s budget request, the Labor Department’s Wage and Hour Division provided a 32-page budget justification to Congress for its planned appropriations. The Wage and Hour Division listed its “Key Enforcement Initiatives” for 2015-2016, and…
January 2015 Independent Contractor Compliance and Misclassification Update
In the Courts (4 cases)
- JANITORIAL FRANCHISE COMPANY SETTLES ITS APPEAL OF $4.8 MILLION JUDGMENT IN FAVOR OF MISCLASSIFIED CUSTODIANS. Coverall North America Inc. settled the independent contractor misclassification case filed against it by a class of 166 custodians who were classified as franchisees under the terms of a franchise
…
New Jersey Supreme Court Sets Low Bar for Workers Who Sue for Independent Contractor Misclassification
More than a year and a half ago, the U.S. Court of Appeals for the Third Circuit, in a class action independent contractor misclassification case, asked the New Jersey Supreme Court to articulate the test that judges should apply in state law wage and hour claims being heard in federal…
$6.5 Million Class Action Settlement Imparts Four Lessons for Companies Seeking to Minimize Independent Contractor Misclassification Liability
A $6.5 million settlement between Lowe’s Home Centers and a class of its home improvement contractors was approved by a federal court judge in California earlier this week. The contractors claim that they had been misclassified as independent contractors instead of employees. The maximum settlement amount, depending on the number…
Florida is 19th State to Partner with U.S. Department of Labor to Combat Unlawful Independent Contractor Misclassification
The Florida Department of Revenue is the latest state agency to sign a memorandum of understanding with the U.S. Department of Labor seeking to prevent employees from being misclassified as independent contractors (ICs). This latest federal-state partnership was announced earlier today by David Weil, the new Administrator of…
December 2014 Independent Contractor Compliance and Misclassification Update
In the Courts (4 cases)
- SUPPLIER OF INSTALLATION SERVICES FOR LARGE SATELLITE TV COMPANY CANNOT DISMISS IC MISCLASSIFICATION CLAIM BY INSTALLER. A federal district court in Mississippi last month denied cross-motions for summary judgment in an FLSA class action IC misclassification suit brought against Media Net, a supplier of
…
November 2014 Independent Contractor Compliance and Misclassification Update
This month’s headline developments are two independent contractor misclassification class action lawsuits: one was filed in New York against a Silicon Valley giant, Google Inc., and the second was filed in California against a Silicon-valley start-up, Handy.com. While the principal claims are similar (failure to pay for all hours worked…