States

Preserve entrepreneurial spirit and protect independent contractors

From Central Maine — “Small business owners, including myself, take the risk of starting a company because we believe in the American dream. In recent years, however, the Department of Labor has taken aim at these entrepreneurial Americans by enacting regulations that would reclassifying independent contractors as employees, affecting most small business owners, from accountants and engineers…

Nailing Down Independent Contractor Status

From HG.org — Erin Mindoro provides an excellent review of the Happy Nails and other independent contractor cases — Happy Nails & Spa of Fashion Valley v. Su, 217 Cal.App.4th 1459 (2013), order not to publish at 2013 Cal LEXIS 9473, Dalton v. Lee Publication, Inc., 2013 U.S. Dist. LEXIS 71291 (S.D. Cal. 2013), Scantland v. Jeffrey Knight,…

Employers skirt wage requirements

From the baltimoresun.com — “What is misclassification, exactly? Well, most federal and local wage laws apply only to “employees” — and rules such as overtime pay apply only to “non-exempt employees.” To avoid extra costs, about 30 percent of employers play brazen (and unlawful) games with these legal definitions. Want to hire people without paying them the…

Virginia Significantly Raises Worker Misclassification Fines

From Sands Anderson PC – JDSupra — “Worker misclassification remains a number one target area for both state and federal review.  On July 1, 2014, the  Virginia Workers Compensation Act (the “VWCA”) significantly increased the civil penalties that the state can impose on a Virginia business owner who has failed to insure a worker who should have been insured. The civil…

Roofer who worked as part of a team and was told where to go and what to do was an employee

From  WestlawNext (subscription required) — The Supreme Court of Oklahoma addressed the issues of employee or independent contractor in the context of an unemployment claim.  The court said: “In Page v. Hardy, 1958 OK 283, 334 P.2d 782, this Court set out several factors to be considered when determining whether an employee/employer relationship exists. Those are: (a)…

Cal. Supreme Court Clarifies Standards for Class Certification of Independent Contract Class Actions

From Sheppard Mullin Richter & Hampton LLP — The California Supreme Court said that the standard for certifying a class of independent contractors.  The standard is: “if the right to control was the same across the class, it was proper to certify the class, even if the actual amount of control exercised varied widely from one delivery…

Senator Sherrod Brown – Helping Ohio workers receive the benefits they deserve

From the  registerherald.com — “To cut costs, some employers cheat the system by misclassifying their employees as independent contractors. Though the vast majority of employers are honest, the ones that aren’t deny their employees vital worker safeguards and avoid paying their fair share of Social Security, unemployment insurance, and income tax. This practice, which occurs across several…

Tennessee Department of Labor and Workforce Expands Efforts to Uncover Employer Fraud

From  Clarksville, TN Online — “The Workers’ Compensation Division of the Tennessee Department of Labor and Workforce Development has put into place new procedures to identify employers who engage in payroll fraud such as intentionally misclassifying workers as independent contractors, failing to report all wages paid, misrepresenting the kind of work performed, or paying workers “under the…

Stricter definition of ‘employee’ sought in Ohio

From The Akron Legal News — “State Reps. Debbie Phillips and Denise Driehaus are stumping for the passage of a bill that would carve out a general uniform definition of employee for specified labor laws. House Bill 347, also known as the Honest Employer Protection Act, would replace the definition of employee in the Minimum Fair Wages…

Illinois misclassification act claim fails; bona fide corporation, not owner, performed services

From Employment Law Daily — A rare case when a worker was found to be an independent contractor in Illinois.  The appeals court agreed with the trial court that services were provided by a bona fide corporation and denied the corporation’s owner’s claim for misclassification. “Pursuant to the Act’s regulations, “an individual performing services” does not include…