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In recent years, state courts have questioned whether independent contractors can be placed under enforceable post-engagement noncompetition agreements. ...more
The U.S. Department of Labor (DOL) is again signaling changes in how it will evaluate independent contractor relationships in its enforcement actions. In 2024, the department issued a final rule that revised the standards...more
Last month, the most significant legal development in the area of independent contractor (IC) compliance and misclassification was on Capitol Hill. Bill Cassidy of Louisiana, a Senate Republican who chairs the Senate Health,...more
With the continued prevalence of the “gig economy”, a common question that arises is whether “gig workers” are employees or independent contractors of the digital platform. ...more
As the business of artificial intelligence is expanding, it seemed it was only a matter of time before the AI industry became the subject of an independent contractor misclassification lawsuit. Last month, one of the leading...more
The most significant legal development in the past month in the area of independent contractor compliance was the enactment of California’s Freelance Worker Protection Act, which goes into effect on January 1, 2025. We have...more
In a refreshing break for business in the Bay State, two recent appellate court decisions have confirmed that legitimate independent contractor relationships are alive and well in Massachusetts. Those decisions are Patel, et...more
On September 5, 2024, the Massachusetts Supreme Judicial Court (“SJC”) answered a second certified question in Patel, et al. v. 7-Eleven, Inc., et al. (“Patel II”), a long-running case where 7-Eleven franchisees claimed they...more
The legal developments in the area of independent contractor misclassification and compliance last month include cases against a record label company, an Islamic Center, and a waste recycling company. Lawsuits for IC...more
Employee misclassification is an area of employment law that has steadily become a prominent subject of litigation in recent years. The decision of whether a specific worker is properly identified as an employee or...more
Lawyers representing ride share drivers have argued for years that their clients are being misclassified as independent contractors under federal and state laws. They have attained little success, however, obtaining...more
The courts will generally enforce employee arbitration agreements via the Federal Arbitration Act (“FAA”). However, a “transportation workers” exemption exists under the FAA. On April 12, 2024, the United States Supreme Court...more
In this issue of Employment Flash: the new DOL rule on independent contractors, SCOTUS’s unanimous Sarbanes-Oxley whistleblower ruling, plus labor law developments in California, Delaware, D.C., New York, the EU, Germany and...more
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...more
On June 13, 2023, the National Labor Relations Board (NLRB) released a decision, referred to as Atlanta Opera Inc. (372 NLRB No. 95), that marks a shift in the applicable test for whether a worker qualifies as an independent...more
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...more
The Dutch Supreme Court has just ruled that Deliveroo meal deliverers are not self-employed, but rather “regular” employees. With this decision the Supreme Court confirms the earlier judgments of the Cantonal Court and the...more
On March 13, 2023, in Castellanos v. State of California, the California Court of Appeal handed down a pink unicorn decision in favor of app-based driver and delivery businesses that permits them to properly classify workers...more
On March 13, a California Court of Appeal reversed most of a lower court ruling invalidating Proposition 22, the state’s 2020 voter-approved gig economy law allowing giant app-based ride-hailing and delivery companies, like...more
In a recent decision in Kennedy v. Weichert Co., the New Jersey Appellate Division concluded that the “ABC Test” under the Unemployment Compensation Law is inapplicable in determining a real estate salesperson status an...more
The Ninth Circuit Court of Appeals recently affirmed a decision that a group of franchisees are not employees of their franchisor, even though the trial court failed to apply the correct test. Haitayan v. 7-Eleven, Inc., 2022...more
Issues related to whether individuals are independent contractors or employees receive significant attention by employers and governmental entities because of the critical impact of misclassification. The U.S. Department of...more
The U.S. Supreme Court recently denied the California Trucking Association's (CTA) petition for certiorari related to a case involving federal preemption of California Assembly Bill 5 (AB-5), a law that changed the legal...more
On August 2, 2022, the Supreme Court of New Jersey handed down a key ruling that significantly impacts how companies across the state should classify workers as independent contractors. In East Bay Drywall, LLC. v. Department...more
The U.S. Court of Appeals for the First Circuit recently affirmed a district court finding that the Massachusetts Wage Act did not apply to a person who mostly lived and worked in Florida. While the court’s decision in...more