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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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…

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…

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…

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…

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…

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…

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,…

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…