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
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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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…
Comments Submitted to New Jersey’s Proposed Regulation Expanding “ABC Test for Independent Contractor Status”
The following comments were submitted by Richard J. Reibstein, the publisher of this legal blog, critiquing the proposed regulation of the New Jersey Department of Labor and Industry (the Department) regarding the so-called ABC test for independent contractor (IC)…
Home Improvement and Legal Services Industries Under Attack for Independent Contractor Misclassification Claims: June 2025 IC Legal News Update
Last month, there were only a couple of legal developments in the area of independent contractor (IC) compliance and misclassification, but they were significant because two more industries — home improvement and legal services — were added to those in…
Artificial Intelligence Industry Targeted for Independent Contractor Misclassification Lawsuits: May 2025 IC Legal News Update
Five months ago, we reported about a class action lawsuit against an artificial intelligence (AI) company that engages workers to perform data labeling and content creation and classifies them as independent contractors (ICs) instead of employees. We remarked then that…
Republican-Backed Congressional Proposal Seeks to Allow Companies to Offer Benefits to Independent Contractors: April 2025 IC Legal News Update
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…
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…