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Independent Contractors Fair Labor Standards Act (FLSA) Employment Litigation

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

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

Parker Poe Adams & Bernstein LLP

Fourth Circuit Says Use of Noncompetes Indicates Employment Instead of Contractor Relationship

In recent years, state courts have questioned whether independent contractors can be placed under enforceable post-engagement noncompetition agreements. ...more

FordHarrison

EntertainHR: Advice from Anora: Classify Correctly!

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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

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

Jackson Lewis P.C.

Businesses Get a Break: DOL Won’t Enforce 2024 Independent Contractor Rule

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The U.S. Department of Labor (DOL) will no longer apply the 2024 independent contractor final rule when analyzing whether a worker is an employee or independent contractor under the Fair Labor Standards Act (FLSA). The...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

Brooks Pierce

Update: DOL Investigators Directed Not to Apply 2024 Independent Contractor Rule

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New U.S. DOL Guidance on Independent Contractor vs. Employee Analysis -On May 1, 2025, the U.S. Department of Labor (“U.S. DOL”) Wage & Hour Division issued a field assistance bulletin (“FAB”) to guide investigators on...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

Littler

DOL Hits Pause on Enforcement of Biden-Era Independent Contractor Rule, Suggests New or Changed Rule Forthcoming

Littler on

As expected with a change in the White House, and as very recently foretold in Department of Labor court filings, the Trump DOL announced via a Field Assistance Bulletin on May 1 that it will no longer enforce a 2024...more

Littler

Policy Week in Review – April 2025 #2

Littler on

Supreme Court Temporarily Blocks Decision Allowing Reinstatement of NLRB Member Wilcox  - On April 7, the U.S. Court of Appeals for the D.C. Circuit ruled that National Labor Relations Board Member Gwynne Wilcox could...more

Jackson Lewis P.C.

Employers Still Need to Abide 2024 Independent Contractor Rule Despite DOL Hints of Dropping It

Jackson Lewis P.C. on

In recent court filings in several ongoing lawsuits, the Department of Labor (DOL) has indicated that it will reconsider its 2024 independent contractor rule issued by the Biden Administration and may issue a new rule. The...more

Jackson Lewis P.C.

Final Touches: President Trump Rounds Out DOL Leadership with Two Nominees

Jackson Lewis P.C. on

President Donald Trump has nominated Andrew Rogers to lead the Department of Labor’s (DOL’s) Wage and Hour Division (WHD). He also nominated Jonathan Berry to serve as solicitor of labor. Trump sent the nominations to the...more

Bradley Arant Boult Cummings LLP

No Rest for the Weary: The Trump DOL Indicates Yet Another Change to Its Independent Contractor Classification Rule Is on the...

Exactly a year ago, we wrote about the final rule issued by the Biden-era U.S. Department of Labor (DOL) regarding the test for determining whether a worker is an employee covered by the Fair Labor Standards Act (FLSA), or an...more

Troutman Pepper Locke

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

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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

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

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

Ballard Spahr LLP

Trump Administration Retreats from Defense of Two Biden-Era Lawsuits

Ballard Spahr LLP on

In the ongoing battle over labor policy, the Trump administration has signaled plans to abandon or at least revise its defense of two Biden-Era lawsuits and their underlying initiatives. ...more

Jackson Lewis P.C.

Trump DOL Signals a Back-off from Defending Independent Contractor Rule

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The Trump Administration has asked the U.S. Court of Appeals for the Fifth Circuit to postpone oral argument in a lawsuit challenging President Joe Biden’s 2024 independent contractor rule. The U.S. Department of Justice...more

Holland & Knight LLP

The Trump Administration's Impact on Independent Transportation Contractors

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Approximately one year ago, we discussed the impact of the final rule from the U.S. Department of Labor (DOL) regarding whether a worker is an employee or independent contractor under the Federal Fair Labor Standards Act...more

Brooks Pierce

Counting Down to the New Year: Ten “Need-to-Know” Labor and Employment Developments of 2024

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2024 was yet another active year in the labor and employment landscape. While 2025 and the new administration could bring any number of changes to workplace laws and enforcement, the timing and extent of such changes is...more

Fisher Phillips

Labor Department to Crack Down on These 7 Workplace Contract Provisions

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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

Littler

Littler Lightbulb: August Appellate Roundup

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This Littler Lightbulb highlights some of the more significant employment law developments in federal courts of appeal in the last month. Fifth Circuit Vacates DOL Tip Credit Rule...more

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