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Independent Contractors Employer Liability Issues Corporate Counsel

Independent contractors are individuals or entities that perform work for other individuals or entities, but are not employees of those individuals or entities. Whether a worker is an employee or an independent... more +
Independent contractors are individuals or entities that perform work for other individuals or entities, but are not employees of those individuals or entities. Whether a worker is an employee or an independent contractor is not always an easy determination. However, due to differences in tax and liability treatment, misclassifying an employee as an independent contractor can have serious consequences. Autonomy is the defining feature of independent contractor arrangements. Independent contractors control the manner and method of how work is performed while payers control the desired result. Control over schedule and number of hours worked, ownership of equipment or tools, permanency of relationship, and acceptance of jobs from multiple entities are all possible factors in determining whether a worker is an employee or independent contractor.   less -
Brooks Pierce

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

Brooks Pierce on

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

Constangy, Brooks, Smith & Prophete, LLP

Fourth Circuit’s Steadfast ruling clarifies independent contractor status

The majority of a three-judge panel of the U.S. Court of Appeals for the Fourth Circuit has upheld a finding that a medical staffing agency misclassified approximately 1,100 nurses as independent contractors and owed them...more

Fisher Phillips

New Jersey Sharpens Focus on Misclassification Issues, Inches Closer to Adopting “ABC Test” Regulations: What Businesses Need to...

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As independent contractor misclassification enforcement eases up at the federal level, New Jersey is doubling down on the state’s strict test for determining how a worker should be classified under various state laws. The New...more

Fisher Phillips

DOL Easing Up on Independent Contractor Misclassification Enforcement: 3 Key Points on This Big Win for Businesses

Fisher Phillips on

Businesses that rely on freelancers or the “gig economy” have cause for optimism now that the Department of Labor just announced it will no longer enforce a Biden-era final rule that made it harder to classify workers as...more

Fisher Phillips

Top 10 Workplace Law Developments To Expect Under President Trump

Fisher Phillips on

Now that we know Donald Trump will return to the White House as President, it’s time for employers to take a look at what they might expect during his second term in office. We have gathered insights from some of our firm’s...more

Fisher Phillips

Labor Department to Crack Down on These 7 Workplace Contract Provisions

Fisher Phillips on

The Labor Department’s top lawyer announced on Tuesday that the agency would target seven specific employment-related contract provisions that she believes could discourage workers from exercising their rights under federal...more

Troutman Pepper Locke

Independent Contractor Misclassification Lawsuits Involve Record Label Artists, Imam, ‎and Recyclable Sorters: August 2024 IC...

Troutman Pepper Locke on

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

Troutman Pepper Locke

Jurors Disagree on Whether Ride Share Drivers Are Independent Contractors or ‎Employees: June 2024 IC Legal News Update ‎

Troutman Pepper Locke on

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

Littler

July is Still the New January! Littler’s Workplace Policy Institute’s Mid-Year Legislative Report

Littler on

Hot off the press – here is Littler’s mid-year report!  As federal regulators, states and cities continue to pass new workplace regulations through the calendar year, we summarize each state’s notable labor and employment law...more

Troutman Pepper Locke

Industries Counteract Class Action Independent Contractor Misclassification Claims: May ‎‎2024 IC Legal News Update‎

Troutman Pepper Locke on

Class action independent contractor misclassification cases continue to be filed and most seem to settle, often for large sums, as we have reported in our blog posts on legal developments each month. But some industries have...more

Troutman Pepper Locke

Court Challenges Filed to Final Independent Contractor Rule – But Does It Really Matter?‎

Troutman Pepper Locke on

As discussed in our QuickStudy of January 9, the U.S. Department of Labor has issued its long-awaited final rule setting forth its version of the test for independent contractor status under the federal Fair Labor Standards...more

Troutman Pepper Locke

Legally Nil, But Will Look a Lot Like a “Score”: Labor Department Issues Its Final Rule ‎on Independent Contractor Status‎

Troutman Pepper Locke on

It has been well over a year since the U.S. Department of Labor issued its proposed rule entitled “Employee or Independent Contractor Classification under the Fair Labor Standards Act.” The regulation was expressly intended...more

Troutman Pepper Locke

Even Clown Companies Are Targets of Independent Contractor Misclassification ‎Lawsuits: December 2023 IC Legal News Update

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We have had the opportunity, in the course of our independent contractor practice, to represent clients in over 75 diverse industries including some in rather esoteric businesses. These clients have included musical bands,...more

Troutman Pepper Locke

Mega-Settlements in Independent Contractor Misclassification Lawsuits: September 2023 IC Legal News Update

Troutman Pepper Locke on

Every so often a large settlement of a class action lawsuit reverberates in the independent contractor world – but last month there were two mega-settlements. The first was between Flowers Foods, a large nationwide baked...more

Jackson Lewis P.C.

Post-Labor Day Wrap Up: What NLRB’s 2023 Decisions Mean for Employers

Jackson Lewis P.C. on

In the weeks surrounding Labor Day 2023, the National Labor Relations Board overturned precedent with decisions and rules significantly impacting both union and non-union employers. The result is labor laws encouraging both...more

Troutman Pepper Locke

Can Last-Mile and Logistics Companies Compel Arbitration of Independent Contractor ‎Misclassification Cases? July 2023 IC Legal...

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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

Littler

Illinois Becomes the First State to Enact Protections for Freelance Workers

Littler on

On August 4, 2023, Governor JB Pritzker signed the Freelance Worker Protection Act (FWPA) (HB1122) into law, establishing strict protections for freelance workers. ...more

Troutman Pepper Locke

Illinois Is the Focus of Last Month’s Independent Contractor Misclassification Cases: June ‎‎2023 IC Legal News Update‎

Troutman Pepper Locke on

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...more

Troutman Pepper Locke

NLRB Yet Again Seeks to Alter Test for Independent Contractor Status, But Does It Really ‎Make a Difference?‎

Troutman Pepper Locke on

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...more

Latham & Watkins LLP

New Minnesota Law Bans Most Post-Employment Non-Competes: 6 Key Takeaways

Latham & Watkins LLP on

Minnesota has enacted one of the strictest state non-compete laws in the US, banning almost all post-termination non-competes between employers and their employees and between employers and certain independent contractors...more

Troutman Pepper Locke

Another Unemployment Setback for Gig Economy Companies Using Independent ‎Contractors: April 2023 IC Legal News Update

Troutman Pepper Locke on

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

Bradley Arant Boult Cummings LLP

Not Interstate? You Must Arbitrate – Third Circuit Rules Uber Drivers Don’t Meet FAA Exception

Can you require your workers to arbitrate claims? What if they work in interstate commerce? Recently several courts have addressed the scope of the Federal Arbitration Act (FAA) and when it applies to arbitration agreements...more

Blake, Cassels & Graydon LLP

Defining the Relationship: Independent Contractor or Employee?

Organizations commonly face the question of whether a relationship with a worker should be characterized as a contractor or employment relationship. Each characterization offers different benefits and creates different...more

Troutman Pepper Locke

New Jersey is Becoming the Next California: February 2023 Independent Contractor Legal News Update

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Ever since the New Jersey Supreme Court issued its 2015 decision in the Sleepy’s case, establishing an ABC test for wage and hour lawsuits, class action lawyers have targeted companies operating in that state for IC...more

Littler

French Court Finds Gig Platform Workers Are Independent Contractors, Not Employees

Littler on

A recent decision issued in France indicates that whether a gig worker is an independent contractor or employee is a fact-specific inquiry. In this case decided last month, delivery platform Stuart, a subsidiary of the group...more

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