News & Analysis as of

Employment Litigation Misclassification

Brooks Pierce

Fourth Circuit Affirms Multi-Million Dollar Decision, Underscoring Risks in Worker Misclassification

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Many businesses rely on independent contractors to stay flexible, control costs, and meet fluctuating demand, but misclassifying those workers can carry massive financial consequences. On July 17, 2025, the Fourth Circuit...more

Jackson Lewis P.C.

When ‘Independent Contractors’ Are Actually Employees: Lessons from the $9.3M Steadfast Medical Staffing Judgment

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The U.S. Court of Appeals for the Fourth Circuit recently affirmed a $9.3 million judgment against a medical staffing agency in a Department of Labor (DOL) Fair Labor Standards Act (FLSA) enforcement action alleging nurses...more

Orrick, Herrington & Sutcliffe LLP

Monthly Highlights – UK Employment Law – July 2025

In this month’s highlights, our team summarises the latest developments in UK employment law and their implications for employers. 1. The UK Government has published its “Implementation Roadmap” for the phased enforcement of...more

Fisher Phillips

Return of the PAID Program: Here’s What Employers Need to Know as DOL Reinstates Back Wage Payment Option

Fisher Phillips on

The US Department of Labor’s latest update rewards employers that proactively resolve potential wage and hour claims and obtain approval of their investigation and resolution. The DOL’s Wage and Hour Division first introduced...more

FordHarrison

EntertainHR: Advice from Anora: Classify Correctly!

FordHarrison on

I have said it many times – summer is for movies! Blockbusters, indies, and comedies (or whatever films you enjoy) just make a summer night better. Summer is also halfway to the film industry’s most illustrious awards show,...more

Cranfill Sumner LLP

We Can Work It Out: U.S. Department of Labor Pauses Reliance on 2024 Independent Contractor Rule in its Enforcement of Independent...

Cranfill Sumner LLP on

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

Troutman Pepper Locke

Artificial Intelligence Industry Targeted for Independent Contractor Misclassification Lawsuits: May 2025 IC Legal News Update

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Five months ago, we reported about a class action lawsuit against an artificial intelligence (AI) company that engages workers to perform data labeling and content creation and classifies them as independent contractors (ICs)...more

Stoel Rives - World of Employment

DOL Signals Business Friendly Independent Contractor Standard: What Employers Need to Know

The U.S. Department of Labor (DOL) recently stated that it will not enforce an employee-friendly independent contractor rule implemented by the Biden administration in 2024 (“Biden Rule”). The Biden Rule made it more...more

Fisher Phillips

Brazil’s Supreme Court Suspends All Cases Discussing Contractor Reclassification: What Businesses Need to Know

Fisher Phillips on

Brazil’s Federal Supreme Court recently suspended all pending lawsuits alleging that contractors should be reclassified to employees. The suspension, which was issued last month, covers both contractors who are engaged...more

Troutman Pepper Locke

Republican-Backed Congressional Proposal in Congress Seeks to Allow Companies to Offer Benefits to Independent Contractors: April...

Troutman Pepper Locke on

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

Vedder Price

U.S. Department of Labor Issues New FLSA Independent Contractor Guidance

Vedder Price on

On May 1, 2025, the U.S. Department of Labor (DOL) published FAB No. 2025-1, providing guidance to its field staff on the analysis to apply when determining whether a worker is an independent contractor or employee for...more

Troutman Pepper Locke

Trump Administration Reissues 2019 Opinion Letter on Independent Contractors and Virtual Marketplace Companies

Troutman Pepper Locke on

The U.S. Department of Labor re-issued an Opinion Letter on the issue of independent contractor (IC) status of an on-demand virtual marketplace company (VMC) that refers end-market consumers to service providers who offer...more

Ice Miller

The Highly Compensated Employee Exemption Under the FLSA - Misclassification of Highly Compensated Employees Can be Costly

Ice Miller on

Classification of employees under the Fair Labor Standards Act (FLSA) remains a high-risk area where employers can easily misstep, potentially incurring thousands of dollars in overtime pay, liquidated damages, attorneys...more

Troutman Pepper Locke

The Legal Landscape of Independent Contractor Misclassification May Be About to Change: March 2025 IC Legal News Update

Troutman Pepper Locke on

The most significant development last month in the law of independent contractors was not one of the four cases we summarize below but rather a bill passed by the New York Senate. ...more

BCLP

HK Court Rules That Gig Delivery Driver Was Not an Employee

BCLP on

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

Whiteford

The Crucial Role of Labor and Employment Law Due Diligence in IPO Success

Whiteford on

As private equity leaders and their in-house counsel gear up for the anticipated surge in IPOs in 2025, the importance of thorough labor and employment law due diligence cannot be overstated. With the IPO market poised for a...more

Troutman Pepper Locke

Travel Industry Exposed to Independent Contractor Misclassification Claims: February 2025 IC Legal News Update

Troutman Pepper Locke on

Few industries are immune from class actions alleging IC misclassification of workers paid on a 1099 basis. One industry that has not yet been besieged by these types of lawsuits is travel, but that may be changing. ...more

ArentFox Schiff

Arzate v. ACE American Insurance Company: Employer Not Required to Initiate Arbitration in Defense of Itself

ArentFox Schiff on

On June 18, 2021, a group of ACE American Insurance Company employees filed a class action suit alleging that ACE misclassified them as exempt employees....more

DarrowEverett LLP

Seventh Circuit Decision Clarifies Standards for FLSA Overtime Cases

DarrowEverett LLP on

The Seventh Circuit Court of Appeals recently clarified the evidentiary bar for employees bringing Fair Labor Standards Act (FLSA) overtime claims, requiring employees to provide specific, detailed evidence of their work...more

Vedder Price

Federal District Court Says Class and Collective Action Waiver Survives Unenforceable Arbitration Agreement

Vedder Price on

On February 12, 2025, the U.S. District Court for the District of Oregon issued an important decision in Porteous v. Flowers Foods, Inc. regarding the enforceability of class and collective action waivers contained in...more

Venable LLP

Supreme Court Clarifies Burden of Proof for FLSA Exemptions

Venable LLP on

On January 15, 2025, the U.S. Supreme Court clarified the burden of proof employers must satisfy when questions arise concerning employee classification under the Fair Labor Standards Act ("FLSA"). ...more

Seyfarth Shaw LLP

Seyfarth’s SCOTUS Employment Law Roundup: A Win for Employers Defending Exemptions Under the FLSA, and Two Other Cases to Watch

Seyfarth Shaw LLP on

In an important opinion for employers defending against misclassification claims, the Supreme Court has issued its first major employment law decision of the current term in EMD Sales v. Carrera, with two other marquee...more

Troutman Pepper Locke

Federal Government’s Ping Pong Match on Independent Contractor Rule Is Distraction From Enhancing IC Compliance: January 2025 IC...

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Few federal regulations over the past five years have produced more needless concern by stakeholders than the independent contractor rules under the federal Fair Labor Standards Act (FLSA) issued by the different...more

CDF Labor Law LLP

[Webinar] Wage & Hour Minefield: Top Compliance Risks and Litigation Trends for 2025 - February 26th, 10:00 am - 11:00 am PT

CDF Labor Law LLP on

Wage and hour claims—especially under California’s Private Attorneys General Act (PAGA) and class action lawsuits—continue to rise at an alarming rate. With more PAGA notices filed than ever before and wage and hour class...more

Mayer Brown

US Supreme Court Unanimously Rejects Higher Standard of Proof for Overtime Exemptions Under FLSA

Mayer Brown on

On January 15, 2025, the Supreme Court handed employers a win by confirming that exemptions under the Fair Labor Standards Act (“FLSA”) need only be proven by a “preponderance of the evidence.” In doing so, the Court...more

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