On January 9, 2024, the same day the U.S. Department of Labor issued its final rule on independent contractor status, we published a comprehensive blog post analyzing and commenting on the new regulation, which goes into effect less than a
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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Case Establishing Strict New Jersey Test for Independent Contractor Status Finally Resolved: January 2024 IC Legal News Update
In early 2015, New Jersey borrowed the state’s strict ABC test under its unemployment law and adopted it as the new test for independent contractor status under its wage laws. That change in the law was not an act by…
Legally Nil, But Will Look a Lot Like a “Score”: Labor Department Issues Its Final Rule on Independent Contractor Status
It has been well over a year since the U.S. Department of Labor issued its proposed rule entitled “Employee or Independent Contractor Classification under the Fair Labor Standards Act.” The regulation was expressly intended to override the Trump Administration’s regulation…
Even Clown Companies Are Targets of Independent Contractor Misclassification Lawsuits: December 2023 IC Legal News Update
We have had the opportunity, in the course of our independent contractor practice, to represent clients in over 75 diverse industries including some in rather esoteric businesses. These clients have included musical bands, hail repair companies, meditation centers, adult entertainment…
Concerns Over New York State’s Freelancer Pay Protection Bill – And How to Navigate Around Them
Independent Contractor Juxtaposition: November 2023 IC Legal News Update
This past month, new independent contractor misclassification lawsuits were filed in Illinois, Maryland, New Jersey, and Washington by EMTs, cellular service “drive testers,” home health aides, and app-based couriers making deliveries for a big box store. In addition, last month…
New York State’s Freelancer Pay Protection Bill Enacted Despite Prior Veto and Continuing Defects
In the waning days of 2022, New York Governor Kathy Hochul vetoed the New York State Freelance Isn’t Free Act bill (S 8369B) that had been awaiting her action for over six months. In early June 2023, the…
Hoopla Over Arbitration of IC Misclassification Cases Makes Little Sense: October 2023 IC Legal News Update
Companies can use two independent grounds to compel arbitration of independent contractor misclassification lawsuits: the Federal Arbitration Act (FAA) and state arbitration laws. The FAA, however, includes an exemption for workers engaged in interstate transportation. This exemption has consumed the…
“Unlawyering” Can Avoid Joint Employer Status Under the New NLRB Rule
The highly controversial joint employer regulation just issued by the National Labor Relations Board (NLRB) on October 26 is not so different than the standard that has historically been applied in determining whether a group of workers are employees or…
Mega-Settlements in Independent Contractor Misclassification Lawsuits: September 2023 IC Legal News Update
Every so often a large settlement of a class action lawsuit reverberates in the independent contractor world – but last month there were two mega-settlements. The first was between Flowers Foods, a large nationwide baked goods company, and a class…