States

Lawsuit alleges Uber misclassifies workers as independent contractors

From The Boston Globe — “The suit filed Thursday in Suffolk County Superior Court in Boston by Shannon Liss-Riordan, who has won major labor lawsuits representing Starbucks baristas, house cleaners, skycaps, and exotic dancers, accuses Uber of misclassifying its drivers as independent contractors to avoid paying them the same as employees with benefits. The suit also accuses…

Senator Sherrod Brown (D-Ohio) wants to close worker classification loopholes

From the  Mansfield News Journal | mansfieldnewsjournal.com — “By classifying workers as independent contractors rather than employees under federal tax law, employers can avoid paying payroll taxes, unemployment insurance and workers’ compensation, Brown said. Workers classified as independent contractors also are denied the protection of critical labor laws, including minimum wage and overtime rules and the right…

NY DOL crackdown on “classification” of workers

From Lexology — “In 2013, New York’s “Joint Enforcement Task Force on Employee Misclassification” identified 24,000 instances of employee misclassification, discovered $333.4 million in unreported wages and assessed nearly $12.2 million in unemployment insurance contributions. In addition to the Task Force’s work, the New York Department of Labor (“DOL”) is prosecuting many of the misclassifications…

The self-employment surge and how professionals can best prepare

From BinghamtonHomePage — “professionals are choosing self-employment in order to control the type of work assignments they pursue (67 percent), to have a greater sense of flexibility and work-life balance (64 percent), and to follow a passion (59 percent). ‘While they are young, millennials should be proactive in taking advantage of intrapreneurship and training opportunities, as…

Utah unemployment claimant was an employee despite independent contractor agreement

From CCH — another reminder that having an independent contractor agreement is not conclusive if the relationship of the parties is more like an employer/employee — “Despite having entered into an agreement titled “Independent Contractor Agreement (Co-op)” with the company to deliver auto parts to its customers, the claimant was not independently established in a trade,…

Dangers of misclassifying an employee as an independent contractor highlighted once again in New York Appellate Court decision

From Lexology — “Catherin Nance provided photojournalistic services to the New York Post as an independent contractor. After the Post no longer needed her services, she sought unemployment insurance benefits from New York State arguing that the unemployment insurance law covered her because, in actuality, she performed services as an employee and not as independent contractor. The…

California: When is an Independent Contractor Actually an Employee?

From Rukin Hyland Doria & Tindall LLP — “The U.S. Department of Labor has published a worksheet that describes the factors that courts generally consider under the Fair Labor Standards Act when determining whether an employment relationship exists.  These include: 1) The extent to which the work performed is an integral part of the employer’s business; 2) Whether the worker’s…

Independent contractor or employee: Who is working for you?

From Crain’s Detroit Business — “The IRS recently developed a three-part test to determine whether a worker should be classified as an independent contractor or an employee. The test considers all information that illustrates the company’s degree of control and the worker’s degree of independence. The three categories consist of 1) behavioral control; 2) financial control and…

Another Logistics and Delivery Company Found to Have Misclassified its Drivers as Independent Contractors

From the  Independent Contractor Compliance and Misclassification Legal Blog — “The Ninth Circuit set forth the governing law in California that the “right to control work details is the most important or most significant consideration.” In determining which work details are important, the Court stated that the key are those details that relate to control over “the…