Archives: Independent Contractor

Subscribe to Independent Contractor RSS Feed

Labor Department Withdraws 2015-16 Joint Employment, Independent Contractor Guidance

Did the new Labor Secretary finally throw employers a bone? We think so, but it’s too early to tell whether it’s delicious bacon-flavored or some generic processed meat flavor. On June 7, 2017, the Department of Labor (DOL) announced it was withdrawing the 2015 and 2016 informal guidance on joint employment and independent contractor misclassification.  The … Continue Reading

New NYC Law Requires Written Agreements for Solo Contractors, Even Nannies and Babysitters!

Do you have a nanny or a housekeeper? A regular babysitter? If so, pay attention. Anyone hiring a solo independent contractor in New York City will need to comply with the Freelance Isn’t Free Act, which takes effect May 15, 2017. Anyone. Individuals included. The Act requires a written agreement for all contracts where the value … Continue Reading

FedEx to Pay $228 Million in Independent Contractor Misclassification Settlement

Things that $228 Million will buy: – LeBron James’s waterfront mansion in Miami, listed for $15 million – A 710-year old copy of the Magna Carta, sold in 2007 for $21.3 million – The Oakland A’s, sold in 2005 for $180 million – Three personal submarines, at $2 million each; and – Tivi Island in Fiji (yes, the whole island), available … Continue Reading

Latest Scoop From New Jersey on Independent Contractor Misclassification May Cause Employers Brain Freeze

An ice cream parlor in Dania Beach, Florida, features The Original Kitchen Sink Sundae, which contains up to 30 scoops, plus chocolate syrup, marshmallows, nuts, whipped cream, and a variety of berries.  Customers can choose from any of the 38 flavors offered, and this menu item has earned Jaxson’s Ice Cream Parlor plenty of positive … Continue Reading

Volunteers Alleging Employment Status Lose Title VII Case, but Court Applies Vigorous Analysis First

Everyone’s looking for volunteers. The Salvation Army recruits helpers with the promise of “Doing the most good.” Volunteers of America invites participation by reminding the public “There are no limits to caring.” Even Disney’s Haunted Mansion seeks new recruits, reminding guests at the end of the doom buggy tour, “We have 999 happy haunts here, … Continue Reading

DOL Refills States’ War Chests for Independent Contractor Misclassification Crackdown

The U.S. Department of Labor has awarded $10.2 million in grants to 19 states for continued independent contractor misclassification detection and enforcement. The grants are focused on unemployment insurance programs and, more specifically, companies’ failure to pay unemployment insurance premiums for workers treated as independent contractors but whom the states deem to be employees. This … Continue Reading

New California Law Imposes Joint Liability on Businesses and Contract Vendors for Wage Violations and Workers’ Compensation Coverage

For companies using independent contractors in California, 2014 has been a difficult year, with several significant court decisions threatening the contractor model. In June, the Ninth Circuit rejected the parties’ choice of Georgia law in an independent contractor agreement and found that the contractor was an employee under California law. Later that month, the California … Continue Reading

Conservative Kansas Joins the Liberal Ninth Circuit in Rejecting the Independent Contractor Classification of Delivery Drivers

Editor’s Note: This blog post is a joint submission with BakerHostetler’s Employment Class Action Blog. Last month we blogged about two Ninth Circuit opinions that deemed FedEx Ground drivers to be employees rather than independent contractors under California and Oregon law.  Last week the Kansas Supreme Court joined them, applying Kansas law to reach the … Continue Reading

NLRB Adopts New Test for Independent Contractor Misclassification, Applies it to Find FedEx Drivers are Employees Who Can Unionize

The NLRB has tossed a new vegetable into the enormous salad of independent contractor misclassification tests. As companies might expect, the new vegetable smells rotten. Companies who wish to analyze whether their non-employee workers are properly classified as independent contractors must now contend with a new NLRB test, in addition to the IRS Right to … Continue Reading

Joint Employment Finding Leads to Unexpected $3 Million Liability in Hospital Malpractice Case

When Washington Hospital obtained an insurance policy in 2003 to cover medical claims arising from acts by its employees, its insurer probably did not consider whether hospital employees included workers supplied by a staffing agency. It should have. The issue of whether a staffing agency nurse was a joint employee of the hospital turned into … Continue Reading

Ninth Circuit Shows No Affinity for Independent Contractor Status in Delivery Drivers

Delivering another blow to the independent contractor model, the Ninth Circuit Court of Appeals held this week that furniture delivery drivers for Affinity Logistics were employees under California law, not independent contractors. In Ruiz v. Affinity Logistics Corporation, the Court of Appeals rejected the district court’s conclusion that Affinity’s drivers were independent contractors, a decision … Continue Reading

Illinois Supreme Court Upholds One of the Nation’s Strictest Worker Misclassification Laws; Employers May Face Millions of Dollars in Penalties

Worker misclassification is now a bet-the-company issue. On February 21, 2004, the Illinois Supreme Court rejected a constitutional challenge to Illinois’s Employee Classification Act (the “ECA”), a law that defines most individuals who perform construction-related services as employees of the company who retains them, even if the relationship is set up as an independent contractor … Continue Reading

Employers Under Continued Fire from Government Agencies and Legislature for Workplace Misclassification

New York has just become the 15th state to formally align its efforts with those of the United States Department of Labor (“DOL”) to crack down on the misclassification of employees as “independent contractors.”  New York joins 14 other states (including California, Connecticut, Massachusetts, and Washington) that have partnered with the DOL to “root out bad … Continue Reading
LexBlog