Last month, the most significant legal development in the area of independent contractor (IC) compliance and misclassification was on Capitol Hill. Bill Cassidy of Louisiana, a Senate Republican who chairs the Senate Health, Education, Labor & Pensions Committee, has released
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Trump Administration Reissues 2019 Opinion Letter on Independent Contractors and Virtual Marketplace Companies
Earlier today, the U.S. Department of Labor re-issued an Opinion Letter on the issue of independent contractor (IC) status of an on-demand virtual marketplace company (VMC) that refers end-market consumers to service providers who offer delivery, transportation, shopping, moving, cleaning,…
Garden State May Soon Become Even Less Hospitable to Independent Contractors Than the Golden State
The New Jersey Department of Labor and Industry (the Department) announced on April 28, 2025, that it was filing a notice of a proposed regulation addressing the test for independent contractor (IC) status under New Jersey law. In 2015, the…
The Legal Landscape of Independent Contractor Misclassification May Be About to Change: March 2025 IC Legal News Update
The most significant development last month in the law of independent contractors was not one of the four cases we summarize below but rather a bill passed by the New York Senate. If enacted into law, it would be the…
Travel Industry Exposed to Independent Contractor Misclassification Claims: February 2025 IC Legal News Update
Few industries are immune from class actions alleging IC misclassification of workers paid on a 1099 basis. One industry that has not yet been besieged by these types of lawsuits is travel, but that may be changing. While some companies…
Federal Government’s Ping Pong Match on Independent Contractor Rule Is Distraction From Enhancing IC Compliance: January 2025 IC Legal News Update
Few federal regulations over the past five years have produced more needless concern by stakeholders than the independent contractor rules under the federal Fair Labor Standards Act (FLSA) issued by the different administrations. One administration’s Labor Department issues regulations and…
Artificial Intelligence Industry Faces Independent Contractor Misclassification Claim: December 2024 IC Legal News Update
As the business of artificial intelligence is expanding, it seemed it was only a matter of time before the AI industry became the subject of an independent contractor misclassification lawsuit. Last month, one of the leading generative AI modeling companies…
“Love is Blind” – Can Reality TV Shows Avoid Independent Contractor Misclassification of Contestants?
A federal agency last week accused the companies that created and produce the Netflix reality television series “Love is Blind” of misclassifying the contestants on the show as independent contractors (ICs) instead of employees. The complaint issued by a regional…
Federal Government Study Shows Independent Contractor Working Arrangement Steadily Increasing: November 2024 IC Legal News Update
The most compelling news involving independent contractor compliance and misclassification last month was not a class action lawsuit or a government investigation but rather a government study released by the Bureau of Labor Statistics of the U.S. Department of Labor.…
Due Diligence of a Target Company’s Independent Contractor Misclassification Risks by Private Equity Firms
Private equity firms regularly conduct due diligence of legal risks that could impact potential investments. Yet when considering whether to invest in a target company structured in whole or in part on an independent contractor (IC) business model, few PE…