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Independent Contractors Wage and Hour Penalties

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 -
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

Snell & Wilmer

Colorado’s HB25-1001 Makes Additional Changes to the State’s Wage and Hour Laws

Snell & Wilmer on

This client alert, the third in our series on Colorado employment law changes from the 2025 Colorado Legislative Session, analyzes other significant legislative changes. Our previous alerts addressed new liability for owners...more

Snell & Wilmer

Employers Face New Fines Under Colorado Wage and Hour Laws for Misclassifying Employees as Independent Contractors

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What Happened Employers may incur new fines for misclassifying employees as independent contractors under a new Colorado law. On May 22, 2025, Governor Polis signed HB25-1001, which creates new fines starting at $5,000 per...more

Littler

Colorado Enacts Increased Wage Act Penalties and Enforcement, Allows Local Governments to Increase Tip Credit

Littler on

Colorado has enacted House Bill 25-1001, which significantly amends the state’s wage and hour laws by enhancing enforcement mechanisms, expanding employer liability, and strengthening employee protections. The law will take...more

Littler

New Jersey’s Declaration of No Independence? Agency Issues Proposed Regulations on the ABC Test

Littler on

On April 28, 2025, the New Jersey Department of Labor and Workforce Development (NJDOL) issued a press release announcing the publication of proposed regulations interpreting the “ABC test” used to determine whether workers...more

Saiber LLC

NJ DOL Proposes New Rules Clarifying the ABC Test for Independent Contractors

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The New Jersey Department of Labor and Workforce Development (NJDOL) recently issued proposed regulations aimed at clarifying how employers should apply the “ABC test” to determine whether a worker is properly classified as...more

Troutman Pepper Locke

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

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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

Buchalter

New Year, New Rules: Turning Up the Heat on California’s 2025 Employment Law Changes

Buchalter on

As the new year approaches, several critical legislative changes in employment law will take effect on January 1, 2025, unless specified otherwise. California employers face a dynamic regulatory landscape in 2025, with...more

ArentFox Schiff

California Wage and Hour Potpourri: Liquidated Damages, UCL Awards, Sick Leave Penalties, Rent in Waiting Time Penalties, and More

ArentFox Schiff on

Sometimes, a wage and hour decision touches upon several noteworthy issues, either addressing them for the first time, in new contexts, or serving as a good reminder on topics. ...more

Sheppard Mullin Richter & Hampton LLP

Good Faith Dispute Over Employment Relationship Allows Walmart to Escape Waiting Time Penalties

In a recent opinion in Hill v. Walmart Inc., the Ninth Circuit affirmed summary judgment in favor of Walmart on Hill’s claim for waiting time penalties under Labor Code section 203, finding there was a good-faith dispute...more

Genova Burns LLC

All Bark, Even Bigger Bite: New Jersey's New Worker Misclassification Protections

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On January 20, 2020, Governor Murphy signed into law a series of legislative packages aimed at combating worker misclassification and exploitation. These bills will bolster an already-aggressive state department of labor that...more

Littler

New Jersey Enacts Legislative Package to Add Teeth to Worker Misclassification Laws

Littler on

Seeking to tighten worker misclassification enforcement in New Jersey, on January 20, 2020, Governor Phil Murphy signed into law a package of legislation to add misclassification penalties, allow stop-work orders against...more

Troutman Pepper Locke

Slate of N.J. Laws Require Severance Pay in Mass Layoffs and Increased Penalties for Worker Misclassification

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January 2020 was a busy month for New Jersey’s executive branch. Governor Phil Murphy signed into law at least five workplace-related bills, one of which revised the New Jersey mini-WARN Act, one granting state regulators...more

Best Best & Krieger LLP

Doing Business in 2020: California’s New Workplace Legislation

Part 1: New Labor & Employment Laws Impacting California’s Public and Private Entities - California lawmakers passed a range of employment laws last year aimed to extend benefits and workplace protections to more workers and...more

Seyfarth Shaw LLP

New Jersey Strengthens Enforcement Tools to Crack Down on Independent Contractor Misclassification

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Seyfarth Synopsis: Governor Murphy signed 153 bills into law on January 20, 2020, including six (6) that increase enforcement mechanisms for state agencies to impose certain penalties against employers who misclassify workers...more

FordHarrison

The Gig is Up – New Jersey Misclassification Laws Create Extreme Risk for Anyone Utilizing Independent Contractors

FordHarrison on

Soon after being elected, New Jersey’s Governor created a task force to end misclassification of independent contractors, and the state’s Department of Labor and Workforce Development (DOL) began increasing audits and its...more

ArentFox Schiff

WTA Wage and Hour Changes Increase Risks and Costs on New Jersey Employers

ArentFox Schiff on

New Jersey is one of the more aggressive states in seeking to punish employers for the misclassification of their workers. It recently upped the stakes for employers by enacting the New Jersey Wage Theft Act, which was signed...more

Orrick, Herrington & Sutcliffe LLP

The Good Work Plan

On 17 December 2018, the UK government released the “Good Work Plan,” which sets out its vision for the future of the UK labour market....more

Fisher Phillips

Your Comprehensive Guide to 2018 Proposed California Legislation

Fisher Phillips on

February 16 was the deadline to introduce new bills in the California Legislature. By that date, nearly 2,200 bills were introduced. While that may seem like a staggering amount of legislative proposals (especially for a...more

Bass, Berry & Sims PLC

California Employers Should Remain Cautious when Classifying their Workforce, Notwithstanding More Lenient Federal Policies

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Although the Trump administration rescinded its guidance on worker misclassification earlier this year and appears to have otherwise taken a “softer approach” to misclassification enforcement, California employers should...more

Clark Hill PLC

Worker Classification Update

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On July 20, 2017, the Internal Revenue Service ("IRS") issued a reminder for small businesses on the importance of correctly classifying workers as employees or independent contractors. Employers failing to do this correctly...more

Littler

A Win for Federal Contractors, Court Temporarily Enjoins Enforcement of Key "Blacklisting" Rule Provisions

Littler on

Late in the day on Monday October 24, 2016, a U.S. District Court Judge for the Eastern District of Texas granted a preliminary injunction against implementation of major and contentious provisions of the Fair Pay and Safe...more

Arnall Golden Gregory LLP

You might be an Employee if….

On Friday, I used the phrase “Uber Settlement” as (maybe) click-bait to introduce an important, but hidden, issue facing Irish and Northern Irish companies operating in the US. As I noted in that post, many Irish and Northern...more

Arnall Golden Gregory LLP

The “Independent Contractor” Truck Driver, Wage & Hour Laws, the Affordable Care Act, and Safety Regulations

On The challenges that trucking companies face regarding truck drivers continue to expand. One vexing issue facing many companies: Can they continue to treat many of their truck drivers as “independent contractors” as they...more

Epstein Becker & Green

Take 5 Newsletter: An Employer's "Top 5" Action Items for 2014

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It's December, and human resources professionals and law departments are reflecting on the issues addressed in 2013 and giving thanks for incident-free holiday parties. But the big question is this: What issues should get...more

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