News & Analysis as of

Misclassification Wage and Hour Corporate Counsel

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

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

2025 Compliance Guide for Employers in Mexico

Several Mexican employment-related laws will be implemented or amended in 2025, including the approval of the Chair Law (Ley Silla), the recognition of app-based couriers as employees and its derived obligations, the increase...more

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

Classification of App-Based Couriers as Employees in Mexico

App-based couriers in Mexico are now classified as employees under an amendment to the Federal Labor Law published on December 24, 2024, in the Official Gazette of the Federation (Diario Oficial de la Federación). ...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

Troutman Pepper Locke

Artificial Intelligence Industry Faces Independent Contractor Misclassification Claim: December 2024 IC Legal News Update

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As the business of artificial intelligence is expanding, it seemed it was only a matter of time before the AI industry became the subject of an independent contractor misclassification lawsuit. Last month, one of the leading...more

Bradley Arant Boult Cummings LLP

That’s [Mis]Classified: What Employers Must Prove to Claim an FLSA Overtime Exemption

By now, everyone has heard about the Texas court putting the kibosh on the new salary exempt thresholds. In other exemption classification news, the United States Supreme Court is set to issue an opinion in early 2025...more

Fisher Phillips

Top 10 Workplace Law Developments To Expect Under President Trump

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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

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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

Fisher Phillips

5 SCOTUS Cases for Employers to Track as 2024/2025 Term Begins

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The Supreme Court will begin a new term on October 7, and we’re watching several cases that will likely have a big impact on the workplace. The Justices will grapple with wage and hour issues, coverage under the Americans...more

Troutman Pepper Locke

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

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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 ‎

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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

Fisher Phillips

Uber and Lyft Settlement Provides New Precedent for the Gig Economy and Major Benefits for Massachusetts Drivers: Key Employer...

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Uber and Lyft just reached a $175 million settlement with Massachusetts state prosecutors that permits their drivers to stay classified as independent contractors – not employees – but entitles the drivers to significant...more

Troutman Pepper Locke

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

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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?‎

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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

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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

Cozen O'Connor

New Jersey AG Files First Worker Misclassification Lawsuit Under New Law

Cozen O'Connor on

New Jersey AG Matthew J. Platkin and the New Jersey Department of Labor and Workforce Development filed a lawsuit against STG Logistics, Inc. and STG Drayage LLC (collectively, “STG”) alleging that the shipping and logistics...more

Troutman Pepper Locke

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

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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

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

Troutman Pepper Locke

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

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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

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

NLRB Modifies Independent Contractor Test

On June 13, 2023, the National Labor Relations Board (NLRB) overruled its 2019 independent contractor standard focused on whether workers have “entrepreneurial opportunity” and returned to a common law multi-factor analysis...more

Troutman Pepper Locke

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

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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

Troutman Pepper Locke

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

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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

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

Nelson Mullins Riley & Scarborough LLP

Personal Jurisdiction of Opt-In Plaintiffs Under the FLSA: Will the Supreme Court Resolve the Circuit Split this Summer?

Following the U.S. Supreme Court’s landmark opinion in Bristol-Myers Squibb Co. v. Superior Court of California, 137 S. Ct. 1773 (2017), a question arising under the Fair Labor Standards Act (FLSA) collective actions is...more

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