From JDSupra, Benjamin Ebbink reports on recent developments relating to California Supreme Court’s decision in Dynamex including that “the Division of Labor Standards Enforcement (DLSE) issued an opinion letter that concluded the ABC test applies both to IWC Wage Order Claims and certain Labor Code provisions that enforce Wage Order requirements.” In addition, Benjamin discusses the progress in the…
From JDSupra, Richard Reibstein discusses the report and recommendations of the New Jersey Misclassification Task Force. Richard writes: On July 9, the New Jersey Misclassification Task Force issued its first Report. The Task Force was created by an Executive Order issued by Governor Phil Murphy on May 3, 2018 and includes representatives from the Labor,…
From JDSupra, Ariel Kelly discusses the advantages and disadvantages of engaging with gig workers and then provides guidance for avoiding misclassification of gig workers. Ariel writes: Best Practices to Avoid Misclassification of Gig Workers: For companies to reap the benefits of engaging gig workers, the workers must be properly classified. In fact, misclassification of a…
From Top Class Actions, Kim Gale reports on a proposed settlement by of claims that workers were misclassified by Pepperidge Farm, Inc. as independent contractors. The proposed settlement would be for $22.5 million. Kim writes: If the proposed settlement is approved, the motion divides it up as follows: Approximately $12.52 million will be awarded to…
Staffing Industry Analysts (SIA) reports that a bill to codify the ABC test for classifying workers has been approved by a Senate committee and moved towards enactment: In California, the Senate’s Labor, Public Employment and Retirement Committee approved a bill that codifies the 2018 “Dynamex” decision by California’s Supreme Court to adopt the stricter “ABC test” for…
MBO Partners provides terrific guidance on how to minimize the risks of misclassifying workers: 1. Be Aware of Degree of Control One of the top causes of misclassification is degree of control in a client-independent contractor relationship. By law, independent contractors operate as their own business entity. They have the right to complete work when,…
From JDSupra, Dora Lane reports on changes in employment laws in Nevada including a misclassification statute effective July 1, 2019. Dora writes: SB 493 (Employee/Contractor Misclassification, effective July 1, 2019) SB 493 adds sections to NRS Chapter 608, precluding an employer from using coercion, misrepresentation, or fraud to require a person to be classified as…
From Forbes, Diane Mulcahy discusses the challenges created by the various classification tests and offers suggestions on how to fix worker classification. Diane writes: How Can We Fix Worker Classification? The most common proposal to fix the worker classification system is to add a third category of workers called “independent worker,” or “dependent contractor.” The…
From JDSupra, Brendan Sweeney reports that New York’s statute that prohibits arbitration agreements for sexual harassment claims is preempted by the Federal Arbitration Act (FAA). This is good news for companies that engage with independent contractors and enter into arbitration agreements because it affirms the enforceability of arbitration agreements despite individual state laws that might…
From Business News Daily, Marisa Sanfilippo recommends that small businesses conduct a FLSA self-audit to ensure compliance including a review of whether a worker is properly classified as an employee or independent contractor. Marisa writes: Contractors and nonemployees This is one of the trickier points for many small business owners. If your business uses a…