States

California Gig Economy Employers Should Approach the Department of Labor’s Recent Opinion Letter With Caution 

eal_of_the_United_States_Department_of_Labor

From JDSupra, Raymond Nhan and Rod Sorensen recommend that employers should not rely too heavily on the United States Department of Labor’s Opinion Letter which said that workers engaged through an online platform were independent contractors. Raymond and Rod write: First, the Opinion Letter is not binding on any court.  Rather, the Opinion Letter only…

Washington State Adopts Legislation Restricting Noncompetition Agreements 

Washington map

From JDSupra, Suzanne Thomas discusses a new statute in Washington that limits non-compete agreements for employees and some independent contractors. Suzanne writes: Under the new law, a noncompetition covenant is void and unenforceable against an employee or, as applicable, an independent contractor: Unless (1) the employer discloses the terms of the covenant in writing to…

Ninth Circuit Concludes That New California “ABC” Independent Contractor Test Applies Retroactively

California

From The National Law Review, Michael S. Kun discusses a recent case in which the Ninth Circuit Court of Appeals said that California’s Dynamex decision adopting the ABC test for determining if workers were employees or independent contractors applied retroactively. Michael writes: The Ninth Circuit has now addressed that issue and has concluded that Dynamex in fact…

Concern Grows in California for Travel Agent Independent Contractor Status

Travel Agency

From TravelMarket, Richard D’Ambrosio discusses concerns about whether travel agents in California will continue to be independent contractors. Richard writes:  The California Coalition of Travel Organizations [CCTO] has issued a “call to action,” urging California travel agencies, tour operators and independent agents to contact their state senators and assembly members to resist calls for new…

MA: Cleaning Company Cited $335,000 for Wage, Payroll Violations and Worker Misclassification

Massachusetts Map

WorkersCompensation.com reports that a Massachusetts cleaning company will pay $335,000 for wage law violations including misclassifying workers as independent contractors. WorkersCompensation.com reports: A cleaning and janitorial services company and its president will pay $335,000 in restitution and penalties for misclassifying its workers as independent contractors and for violating the earned sick time law, Attorney General Maura…

California Appellate Courts Diverge on Arbitration Agreements 

California

From JDSupra, Michelle Roberts Gonzales and Tao Leung discuss two cases involving arbitration clauses in California. In the first case, the court enforced the arbitration clause because the employee’s continuing employment amounted to acceptance of the agreement. In the second case, the court did not enforce the agreement because of deficiencies in the terms of the…

California Port Truck Drivers Awarded Over $1.2 Million for Wage Theft | Teamsters

truck on highway

Teamsters.org reports that California truck drivers were awared $1.2 Ten California port truck drivers who haul cargo for Best Buy, Puma and Lowe’s have been awarded more than $1.2 million by the California Labor Commissioner for wage theft due to misclassification as independent contractors. The decision orders K&R Transportation, which was purchased by NFI Industries in…

Wisconsin launches worker misclassification task force

Wisconsin - blue map

Staffing Industry Analysts (SIA) reports that Wisconsin has launched a task force to investigate worker misclassification. SIA reports: Wisconsin Gov. Tony Evers this week signed an executive order launching a joint enforcement task force on payroll fraud and worker misclassification. The task force will coordinate worker misclassification matters handled by the Departments of Revenue, Workforce Development, and…

Can Arbitration Be Enforced Against Non-Signatories to a Contract?

From Lexology, Cheryl D. Shoun discusses a decision by the South Carolina Supreme Court said that a non-signagtory could enforce an arbitration agreement only if it received a direct benefit of the contract. Cheryl writes: State and federal courts have issued myriad opinions emphasizing the importance of and favor for arbitration. The Federal Arbitration Act…