The leading development last month in the area of independent contractor (IC) compliance and misclassification was undoubtedly the issuance of the proposed rule on IC status by the U.S. Department of Labor (DOL). That proposed rule was the subject of
Independent Contractor Misclassification & Compliance
The blog "Independent Contractor Misclassification & Compliance," published by Troutman Pepper Locke, focuses on legal developments and compliance issues related to the classification of workers as independent contractors versus employees. It covers class action lawsuits, regulatory changes, and settlements involving industries such as legal services, healthcare, app-based staffing, delivery, and logistics. The blog analyzes court decisions, government enforcement actions, and legislative proposals affecting independent contractor status, including tests like the ABC test. It also discusses strategies for businesses to enhance compliance and reduce litigation risks through structured processes and documentation.
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Nothing New and Likely to Be Ineffective: The New Proposed Independent Contractor Rule Issued by the Labor Department
Today, February 26, 2026, the U.S. Department of Labor in the second Trump administration issued a proposed regulation regarding the classification status of independent contractors (ICs). As we noted three days ago in a blog post written in anticipation of…
Will the Upcoming Independent Contractor Regulation, To Be Issued Soon by the Labor Department, Have Any Legal Significance?
The U.S. Labor Department has drafted a regulation governing the status of workers as independent contractors (ICs) or employees under the Fair Labor Standards Act (FLSA), and that new rule is reportedly undergoing White House review. A notice of proposed…
Home Health Company and Its Owner and Manager Liable For Independent Contractor Misclassification of Nurses and Home Health Aides
On February 13, 2026, a federal district court in Pennsylvania entered summary judgment against a home health company, Amazing Care Home Healthcare Services LLC, and its owner and manager, in a lawsuit brought by the U.S. Department of Labor (DOL),…
Independent Contractors and Joint Employment Doctrine: January 2026 IC Legal News Update
We report below on four key legal developments last month involving independent contractor (IC) misclassification, the most important of which was a decision involving the joint employment doctrine. Class action lawyers alleging IC misclassification have filed multiple Fair Labor Standards…
Franchisors Remain Under Attack for IC Misclassification: December 2025 IC Legal News Update
We report below on three new lawsuits filed last month for independent contractor (IC) misclassification. In the first, an automotive repair tool company operating on a franchise business model was sued by mobile tool dealers who signed franchise agreements classifying…
Legal Industry Becoming a Target for Independent Contractor Misclassification Claims: November 2025 IC Legal News Update
The first case on which we report below involves a class action lawsuit asserting independent contractor (IC) misclassification involving Lawyer.com. A plaintiff who answered calls to this well-known legal referral business alleges that he, along with others who are similarly…
App-Based Independent Contractor Settlements Exclude Any Obligation to Reclassify: September 2025 IC Legal News Update
The most noteworthy legal development last month in the area of independent contractor (IC) compliance and misclassification law was the $19 million assessment paid to the New Jersey Department of Labor and Workforce Development (NJDOL) by a ride-sharing platform connecting…
Three of the Oldest Independent Contractor Misclassification Cases Are Coming to an End: August 2025 IC Legal News Update
This past month, three of the longest-running class actions alleging independent contractor (IC) misclassification are finally ending. In all three cases, the companies, after vigorously defending themselves for close to a decade, have chosen to resolve their cases rather than…
Health Care Industry Under Attack for Independent Contractor Misclassification: July 2025 IC Legal News Update
Unless you were in the health care industry, July 2025 was a relatively slow month for judicial developments in the law of independent contractor (IC) misclassification and compliance. Only two significant IC cases came to our attention, and they impact…