News & Analysis as of

Misclassification Appeals Employment Litigation

ArentFox Schiff

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

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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

Mayer Brown

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

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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

Harris Beach Murtha PLLC

U.S. Supreme Court Unanimously Rejects Heightened Standard of Proof for FLSA Overtime Exemptions

A recent decision by the U.S. Supreme Court solidified the evidentiary standard of proof for federal wage law disputes where employers seek to establish their employees are appropriately classified as exempt under the Fair...more

Sands Anderson PC

The Supreme Court Holds That Employers Need Not Prove Wage & Hour Exemptions Under a Heightened Standard of Proof

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In E.M.D. Sales, Inc. v. Carrera, the Supreme Court decided the burden of proof an employer must meet to prove that an employee is exempt from the overtime and minimum wage requirements of the Fair Labor Standards Act. The...more

Ballard Spahr LLP

The Supreme Court Clarifies That the Preponderance Standard Applies to FLSA Exemption Cases

Ballard Spahr LLP on

Employers confronted with individual or class action lawsuits or government investigations under the federal Fair Labor Standards Act (“FLSA”) have the burden to prove that employees are exempt from the law’s minimum wage and...more

Lowndes

U.S. Supreme Court Rejects Higher Standard of Proof for Overtime Exemptions

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In a win for employers, the U.S. Supreme Court ruled this week in E.M.D. Sales, Inc. v. Carrera that employers need only prove an exemption from overtime under the Fair Labor Standards Act (FLSA) by a “preponderance of the...more

Littler

High Court Reaffirms Preponderance-of-the-Evidence Standard for FLSA Overtime Exemptions

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On January 15, 2025, the U.S. Supreme Court ruled that disputes over the applicability of overtime exemptions under the Fair Labor Standards Act (FLSA) are governed by the preponderance-of-the-evidence standard.  In so doing,...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

Employers Need Only Use ‘Preponderance of Evidence’ Test to Show Workers Are Exempt From FLSA, Supreme Court Rules

On January 15, 2025, the Supreme Court of the United States held that employers need only demonstrate that an employee is exempt from the minimum wage and overtime requirements of the Fair Labor Standards Act (FLSA) by a...more

BakerHostetler

You Can Contract If You Want To: California Appellate Court Leaves Prop 22 Largely Intact

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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

Littler

Savings Clause Results in Oregon Supreme Court Affirming Enforceability of Arbitration Provision

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On July 8, 2022, in Gist v. ZoAn Management, Inc., the Oregon Supreme Court affirmed the decisions of the trial court and court of appeals granting the defendants’ motion to compel arbitration.  The court concluded that...more

Littler

U.S. Court of Appeals Offers Guidance on Applicability of Massachusetts Wage and Hour Laws to Out-of-State Workers

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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

Perkins Coie

Rare Employer Victory in CA Misclassification Case

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A unanimous three-judge panel reached a decision in the case of Bijon Hill v. Walmart. Last week, the U.S. Court of Appeals for the Ninth Circuit affirmed that Walmart classified a freelance model, Bijon Hill, as an...more

CDF Labor Law LLP

Unpublished California Opinion Did Not Authorize Arbitration Over Threshold Issue of Independent Contractor or Employee in a PAGA...

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A former driver for UberEats alleged that Uber misclassified drivers as independent contractors as part of a PAGA action.  Uber sought an order to compel arbitration of the question of whether the plaintiff was an independent...more

BCLP

UK HR Two Minute Monthly - March 2022

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Our March update considers key employment law developments from February 2022. It includes an important case on holiday pay for gig economy workers, EAT guidance on employment status and a case considering the ability of a...more

Snell & Wilmer

Utah’s Employer/Independent Contractor Distinction Remains Cloudy, Even To Judges

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In a February 3, 2022 opinion by the Utah Court of Appeals, the struggle that courts have in distinguishing between employees and independent contractors continues. In Jensen Tech Services and Sentinel Insurance Company,...more

Ervin Cohen & Jessup LLP

Ninth Circuit Holds that the Dynamex ABC Test Applies Retroactively, But Not Prop. 22

On September 20, 2021, the Court of Appeals for the Ninth Circuit reversed Grubhub, Inc.’s lower court victory in a class action case involving the alleged misclassification of a former driver. The driver claimed he was...more

Sheppard Mullin Richter & Hampton LLP

Ninth Circuit Reversed Grubhub’s Victory on Independent Contractor Classification in Light of the Retroactive Application of...

On Monday, the Ninth Circuit vacated a judgment for Grubhub, Inc. and against a former food delivery driver, Raef Lawson, who claimed that he was misclassified as an independent contractor when he performed food delivery...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

Appeals Court Affirms Employer’s Ability to Compel Arbitration in Massachusetts

Mandatory arbitration clauses for employment disputes have received a great deal of attention in recent years. In the First Circuit, there is now more clarity regarding the factors used to determine the enforceability of...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

Massachusetts Appeals Court Clarifies Issues Regarding Overtime Compensation Defenses

Employees who claim that their employers misclassified them as exempt from the overtime requirements of Massachusetts law frequently attempt to recover overtime pay for hours worked outside the statute of limitations...more

Holland & Knight LLP

Fifth Circuit Shakes Up Standard for Certifying FLSA Collective Actions

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The U.S. Court of Appeals for the Fifth Circuit issued a potentially landmark decision in Swales v. KLLM Transport Services, L.L.C. on Jan. 12, 2021, rejecting more than 30 years of case law related to conditional...more

Fisher Phillips

Independent Contractor vs. Employee: Federal Appeals Court Instructs How to Structure Physician Agreements To Avoid...

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While the use of independent contractors in the healthcare industry has been a longstanding practice, it is now front and center as the gig economy continues to expand across several industries and the preference for...more

Fisher Phillips

Rideshare Companies Get Last-Minute California Reprieve – But Pivotal Gig Economy Appeal Will Be Heard At Warp Speed

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Just a few hours before they were subject to a court order forcing them to transform all of their drivers from independent contractors to employees, a California appeals court spared the nation’s two largest rideshare...more

Fisher Phillips

Battle Lines Drawn: Another Appeals Court Rules That Drivers Can Escape Arbitration, Furthering National Split For Gig Economy...

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Gig economy companies received bad news yesterday when yet another federal appeals court ruled that delivery drivers – even independent contractors – can escape otherwise valid arbitration agreements. This is now the third...more

Fisher Phillips

Federal Appeals Court Hands Gig Companies Best New Prime News Yet, Requiring Grubhub Workers To Arbitrate Dispute

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A federal appeals court just handed Grubhub – and gig economy companies in general – a pivotal victory by narrowly interpreting an exception allowing certain transportation workers (including independent contractors) to...more

FordHarrison

Fifth Circuit Provides Positive Guidance on Independent Contractor Classification

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Applying the “economic realities” test, the Fifth Circuit (with jurisdiction over federal courts in Louisiana, Mississippi, and Texas) recently held that a consultant for an oil and gas company was not subject to FLSA...more

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