It’s been almost a full year since the U.S. Department of Labor issued its proposed regulation entitled “Employee or Independent Contractor Classification under the Fair Labor Standards Act.” The proposed regulation was fully intended to overwrite the Trump Administration’s regulation
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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New State Law Protecting Independent Contractors in Fee Disputes Can Lead To Hefty Damages: August 2023 IC Legal News Update
Last month, Illinois became the first state to enact legislation requiring companies using independent contractors to offer contracts to ICs with prescribed terms and to pay such freelance contractors all of their fees within a specified number of days. The…
Can Last-Mile and Logistics Companies Compel Arbitration of Independent Contractor Misclassification Cases? July 2023 IC Legal News Update
We report on three case developments during July 2023 that raise the question whether last-mile, logistics, and delivery companies alleged to have misclassified drivers as independent contractors can compel arbitration of those types of claims when there is an arbitration…
Illinois Is the Focus of Last Month’s Independent Contractor Misclassification Cases: June 2023 IC Legal News Update
We report below on four case developments during June 2023 in the area of independent contractor misclassification: two of which are centered on Illinois. That state has one of the most stringent statutory tests for independent contractor status. As construed…
NLRB Yet Again Seeks to Alter Test for Independent Contractor Status, But Does It Really Make a Difference?
Yesterday, June 13, 2023, the NLRB issued a lengthy decision in its Atlanta Opera case dealing with the applicable test for independent contractor status under the National Labor Relations Act (NLRA). This decision reversed the Board’s prior test for IC…
Does “Frequent” Driving Exempt Independent Contractors from Arbitration Under the FAA? May 2023 IC Legal News Update
The lead case in our review of last month’s legal developments in the area of independent contractor compliance and misclassification is a decision by the U.S. Court of Appeals for the First Circuit, in which it addresses the interstate transportation…
Another Unemployment Setback for Gig Economy Companies Using Independent Contractors: April 2023 IC Legal News Update
We reported in our October 10, 2022 blog post that Uber had agreed to pay $100 million in back unemployment taxes to the New Jersey Department of Labor for having classified drivers as independent contractors. Another state workforce agency has…
CALIFORNIA’S PROP 22 STANDS TALL, AND A.B. 5 IS DEALT ANOTHER SETBACK: MARCH 2023 IC LEGAL NEWS UPDATE
Three of the five court cases of note in this monthly update involve California’s Assembly Bill 5, which has exponentially increased litigation involving independent contractor misclassification in that state. That development dispels any notion that that law would provide clarity,…
New Jersey is Becoming the Next California: February 2023 Independent Contractor Legal News Update
Ever since the New Jersey Supreme Court issued its 2015 decision in the Sleepy’s case, establishing an ABC test for wage and hour lawsuits, class action lawyers have targeted companies operating in that state for IC misclassification class actions. We…
Independent Contractor Misclassification Cases Proliferate: January 2023 IC Legal News Update
Case developments last month involved independent contractor misclassification lawsuits in the Southwest, Southeast, and Mid-Atlantic states. While more IC misclassification lawsuits have been brought in California than any other state, a quick search of our 250-plus posts published since we…