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
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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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…
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…