MBO Partners proves terrific guidance on how to mitigate the risks of working with independent contractors: 1. Clearly Define the Status of All Workers Clearly defining worker status is an important first step in ensuring compliance. Without a clearly defined employment status, your company may be vulnerable to an IRS audit. With W-2 employees, for example,…
From JDSupra, Hazel Poei and Benjamin Tulis report on the progress of California Assembly Bill 5 which would turn the ABC standard adopted by the California Supreme Court last year into law. Hazel and Benjamin write: On March 26, 2019, proposed Assembly Bill 5, which would codify the California Supreme Court’s controversial Dynamex decision, was amended to…
From Lexology, Andres F. Puerta discusses a dispute over an arbitration clause in an agreement between security workers classified as independent contractors and the National Football League. Andres writes: A group of security workers for the National Football League urged Judge Andrew L. Carter, Jr. of the Southern District of New York to deny the…
From Fisher Phillips, Thomas Birchfield reports on a new Kentucky statute that allows employers to require arbitration agreements as a condition of employment or continued employment. Thomas writes: Kentucky Governor Matt Bevin signed into law Senate Bill 7 which brings Kentucky back in line with every other state by allowing employers to require employees to arbitrate claims…
From Houston Public Media, Elizabeth Trovall reports that, amidst a cloud of controversy, the Texas Workforce Commission proposed a rule change that would make it easier to classify workers who provide services through digital apps as independent contractors. Elizabeth writes: Workers who offer home repair, food delivery and other services through digital apps could lose…
From Lexology, Amy B. Doolittle discusses a case in which a broad arbitration agreement was enforced. Amy writes: In Fialek v. I.C. Sys.,2019 U.S. Dist. LEXIS 39770 (M.D. Fla. Jan. 24, 2019), a magistrate judge recommended that Plaintiff be compelled to pursue her TCPA, FDCPA, and FCCPA claims against Defendant AT&T in arbitration based on an…
From The CPA Journal, Frank Messina, DBA, Bruce P. Ely, Lisa-Ann Polack, and Marena Messina provide an excellent overview of the process, tests and penalties associated with misclassifying workers as independent contractors and they provide their recommendations in a comprehensive article. They write: Classifying a worker as an employee or an independent contractor has a significant effect on…
From Lexology, Christina Cerutti reports on a case in which the arbitration language was in a link in an email after the purchase and the court said the buyer did not have reasonable notice of it and did not agree to it. This case is a reminder of the importance of having parties clearly agree…
From the February 2019 Independent Contractor Misclassification and Compliance News Update, Richard Reibstein reports that oil well and drill site managers reached a settlement of their misclassification claims with Chevron Corporation. Richard writes: Well and drill site managers providing services in states including California, Texas, New Mexico and Oklahoma, have reached a $3.2 million settlement with…
From The National Law Review, Emilia A. Arutunian discusses a recent case in which the court said that a party could not be compelled to arbitrate California’s Private Attorney General Act (PAGA) claims without the government’s consent. Emilia writes: The trial court granted the arbitration petition on all causes of action except for the PAGA…