Independent Contractors

The First Appellate District’s recent decision in Subcontracting Concepts, LLC v. DeMelo, A152205 (April 10, 2019) applies well-established unconscionability principles to an arbitration agreement signed by an employee of an independent contractor. The doctrine of unconscionability refers to an absence of meaningful choice with respect to the terms of a contract, usually the result of unequal bargaining power between the parties.
Continue Reading California First Appellate District Reminds Employers: Check Arbitration Provisions for Unconscionability

On May 2, 2019, the Ninth Circuit ruled in Vazquez v. Jan-Pro Franchising International, holding that the new independent contractor test established by the California Supreme Court in its 2018 decision in Dynamex v. Superior Court applies retroactively to franchisors. As a result of this decision, employers and franchisors who have classified workers as independent contractors may see an increase in wage and hour class actions alleging that the workers are or have been misclassified. Additionally, the decision has serious implications for any California companies that operate under a franchise business mode
Continue Reading Ninth Circuit Determines that Dynamex Independent Contractor Test Applies Retroactively to Franchisors

In a rare win for plaintiffs seeking to avoid arbitration, the U.S. Supreme Court rejected a trucking company’s attempt to compel arbitration in a driver’s proposed minimum wage class action.  The Court held that the Federal Arbitration Act’s exemption for interstate transportation workers applies not only to employees, but also to those classified as independent contractors. 
Continue Reading SCOTUS Rejects Employer’s Attempt to Compel Arbitration of Independent Contractor’s Class Claim

Andrea Mickles filed a complaint against her employer Country Club Inc., alleging it had violated the Fair Labor Standards Act (FLSA) by improperly classifying her and other employees as independent contractors and failing to pay them minimum wage and overtime.  She filed her case as a collective action, and others opted into the case before any ruling on conditional certification. 
Continue Reading Who’s Invited to the Party?: The Status of Collective Action Opt-Ins

In a press release issued this morning, the Department of Labor has announced that it is withdrawing two administrative interpretations issued by the Department of Labor under the Obama administration in 2015 and 2016 relating to misclassification of independent contractors and joint employment.
Continue Reading Department of Labor Announces a Rollback of Obama Administration Policies on Joint Employment and Employee Classification

The issue of whether workers are properly classified as independent contractors rather than employees is a common dispute in the gig economy, particularly in newer, technology-based industries, such as ride-sharing. That issue just became a much simpler one in Florida.
Continue Reading Florida Legislation Establishes That Ride-Sharing Drivers Are Independent Contractors, Not Employees

Across the country, worker misclassification issues continue to be a significant risk for employers. One hot button issue is whether workers in newer, technology-based industries, such as ride-sharing, are properly classified as independent contractors rather than employees. Last week, an appellate court in Florida considered whether Uber drivers are properly classified as independent contractors or employees for purposes of benefits under Florida’s unemployment insurance statute.
Continue Reading Florida Court Finds Uber Drivers are Independent Contractors, Not Employees

On July 15, 2015, the Department of Labor (“DOL”) issued guidance which it claims is designed to reduce the misclassification of employees as independent contractors under the Fair Labor Standards Act (“FLSA”).
Continue Reading DOL Issues Guidance Claiming Most Workers Are Employees – Not Independent Contractors – Under the FLSA

A recent decision from the California Labor Commissioner’s Office found that a former Uber driver was an employee of the company, not an independent contractor as the firm has labeled its motorists.
Continue Reading California Finds Uber Drivers are Employees, Not Independent Contractors – Ruling Could Shake Up Mobile App-Based Business Model

In Euchner-USA, Inc. v. Hartford Cas. Ins. Co., No. 13-2021-cv, 2014 U.S. App. LEXIS 10797 (2d Cir. June 10, 2014), the United States Court of Appeals for the Second Circuit found that an insurer must defend its insured in a case alleging ERISA violations because the facts alleged (as opposed to the embedded legal