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
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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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 Well, it was repealed before it became effective and was replaced earlier this year with a new version…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…
Industries Counteract Class Action Independent Contractor Misclassification Claims: May 2024 IC Legal News Update
Class action independent contractor misclassification cases continue to be filed and most seem to settle, often for large sums, as we have reported in our blog posts on legal developments each month. But some industries have countered this trend in…
Can You Cover Independent Contractors With Workers’ Compensation Insurance?
We are frequently asked by businesses about workers’ compensation coverage for independent contractors. Clients ask us: Can our company cover independent contractors with workers’ compensation insurance? Is it safer for us if we do so? Or better not to? Like…
Supreme Court FAA Decision Creates Even More Questions About Independent Contractors and Arbitration: April 2024 IC Legal News Update
Is an independent food distributor exempt from an arbitration agreement under the interstate transportation worker exemption in the Federal Arbitration Act (FAA)? That was the question that the U.S. Supreme Court addressed in its April 12, 2024 opinion involving a…
Why Was a Carpenter Misclassified as Independent Contractor But a Truck Cleaner Was Not? March 2024 IC Legal News Update
Two court cases we summarize below, decided in March 2024, demonstrate that while some companies may prevail in an IC misclassification lawsuit, others do not. Why? As a starting point, the legal test for IC status under the federal wage…
Can You Legally Get Criminal Background Checks on Independent Contractors?
Independent contractors can pose safety and security risks as much as employees. Some go into customer homes. Others have access to personally identifiable information and proprietary business information. Some independent contractors drive trucks making deliveries for companies identified by logos…
The Delicate Case for Reclassification of Independent Contractors: February 2024 IC Legal News Update
Two cases reported below in our review of legal developments in February 2024 address reclassification of independent contractors. The first case is one in which a state and county sought enforcement of California’s strict ABC test for independent contractor status…