One of last month’s legal developments on which we report below is a decision by a federal court in New Jersey that should serve as a reminder to companies: arbitration clauses need to be drafted well in order to succeed.
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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Massachusetts High Court Deals Blow to Franchisors Seeking Judicial Exemption from Strict Independent Contractor Test, But All Is Not Lost
Does the strict ABC test set forth in the Massachusetts independent contractor law apply to the relationship between a franchisor and its franchisee where the franchisor must also comply with the FTC’s Franchise Rule? That was the question that the…
NLRB Issues Unfair Labor Practice Complaint Alleging Misclassification of Independent Contractors Is a Stand-Alone Unfair Labor Practice
Late last week, the National Labor Relations Board last week issued a Complaint and Notice of Hearing that could, if successful, make the act of misclassifying workers as independent contractors a violation of the National Labor Relations Act. The complaint…
What Companies Can Learn From an ERISA Case Alleging Independent Contract Misclassification: February 2022 IC Legal News Update
This past month, the most notable lawsuit alleging independent contractor misclassification was an ERISA claim. ERISA lawsuits by workers alleging independent contractor misclassification can potentially expose companies to enormous liability. For example, in 2017 a federal district court entered a…
Is There Really a D.C. Crackdown on Independent Contractor Misclassification? January 2022 IC Legal Update
Federal and local officials in Washington, D.C. took steps last month to gear up their counter-attacks against independent contractor misclassification, but companies that have taken meaningful steps to enhance their compliance with applicable federal, state, and local independent contractor laws…
Non-Partisan Study Shows Overwhelming Majority of Gig Workers “See Themselves as Independent Contractors”: December 2021 News Update
Perhaps the most significant development involving independent contractor compliance and misclassification issues in December 2021 received relatively scant attention: a detailed empirical study based on survey results of a cross-section of Americans entitled “The State of Gig Work in 2021.”…
Courts Unlikely to Accept a New NLRB Independent Contractor Test
Earlier this week, the National Labor Relations Board issued an Order inviting the public to file briefs in a case involving the independent contractor status of workers providing makeup and hairstyle services to the Atlanta Opera. This highly unusual move…
Is the U.S. Supreme Court About to Dive Into the Independent Contractor Misclassification Field? November 2021 IC Law Update
The highlights of independent contractor legal developments in November 2021 focus on interstate transportation workers. Questions addressed by the courts last month included whether ride-sharing workers classified as independent contractors are considered interstate transportation workers and therefore exempted from the…
Pharmacy Deliveries Remain Target for Independent Contractor Misclassification Claims: October 2021 News Update
October was a relatively “slow” month for legal developments in the areas of independent contractor misclassification and compliance. But for companies that engage drivers to distribute pharmaceutical products, a nearly $12 million settlement of an IC misclassification case last month…
Critical Update: Independent Contractors Not Covered Under Biden Vaccination Plan
On October 11, 2021, we published a blog post on vaccination mandates for independent contractors. We addressed the issue of whether OSHA, in issuing a rule covering so called “large employers” with over 100 employees, will seek to expand the…