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
Independent Contractor Misclassification & Compliance
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How Health Care Systems Can Guard Against Independent Contractor Misclassification Liability for Contract Nurses
Businesses can learn quite a lot from a legal challenge faced by others in the same industry. Recently, we noticed that a large health care system operating in seven states west of the Mississippi had been sued in a class…
Newest State Independent Contractor Pay Protection Law Creates Uncertainties: October 2024 IC Legal News Update
The most significant legal development in the past month in the area of independent contractor compliance was the enactment of California’s Freelance Worker Protection Act, which goes into effect on January 1, 2025. We have reported on freelance pay…
Federal Independent Contractor Law Will Hardly Be Impacted by a Change in Administration, and State IC Laws Will Continue to Be Vigorously Enforced
Many commentators will likely suggest that the law involving independent contractor misclassification will become more favorable to businesses and less favorable to workers with a change in the White House. While things will not likely get worse, they will not…
NLRB About to Rule That Independent Contractor Misclassification Alone Violates Law
Is independent contractor misclassification, standing alone, a violation of the National Labor Relations Act? Last month, the National Labor Relations Board issued a decision in a case involving workers who were found to be misclassified by a company as independent…
Can Nurses Lawfully Be Classified as Independent Contractors? September 2024 IC Legal News Update
One of the most important legal developments last month is a new lawsuit filed by registered nurses against a leading health care system alleging that they have been misclassified as independent contractors instead of employees. The proposed class and collective…
Independent Contractor Misclassification Lawsuits Involve Record Label Artists, Imam, and Recyclable Sorters: August 2024 IC Legal News Update
The legal developments in the area of independent contractor misclassification and compliance last month include cases against a record label company, an Islamic Center, and a waste recycling company. Lawsuits for IC misclassification come from a diverse array of workers…
Flawed Independent Contractor Pay Protection Law Disappeared But Will Make Reappearance in New York on August 28, 2024
You may have wondered where New York’s so-called Freelance Isn’t Free Law went after it was enacted into law in November 2023. Well, it was repealed before it became effective and was replaced earlier this year with a new version…
Customer Service Companies Using Independent Contractor Business Model Risk Misclassification Liability: July 2024 IC Legal News Update
Last month, two key legal developments in the area of independent contractor misclassification and compliance highlighted the risks posed to customer service companies that use an independent contractor business model. The first involves a Colorado company using agents to provide…
Jurors Disagree on Whether Ride Share Drivers Are Independent Contractors or Employees: June 2024 IC Legal News Update
Lawyers representing ride share drivers have argued for years that their clients are being misclassified as independent contractors under federal and state laws. They have attained little success, however, obtaining definitive rulings in their favor, particularly in states that have…