Worker Misclassification

5 Employee Misclassification Penalties to Avoid 

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MBO Partners shares five types of penalties that a company can incur if it misclassifies workers as independent contractors: Here are five consequences of employee misclassification and what your company can do to remain compliant. 1. Violations for Wage Claims There are a variety of tests and laws used to determine whether or not a worker…

IC misclassification bad, but potential legislation has flaws, attorneys tell lawmakers

Staffing Industry Analysts (SIA), the Global Advisor on Staffing and Workforce Solutions, reports on a Congressional hearing on a independent contractor misclassification bill. SIA reports: Companies that misclassify workers as independent contractors can save at least 16.7% on labor costs and they can underbid businesses that don’t misclassify to win projects, according to testimony before…

Appeals Court Allows IC Misclassification Suit by Models to Proceed

From JDSupra, Richard Reibstein reports on a lawsuit by models alleging they were misclassified as independent contractors. A recent decision vacated summary judgment in favor of the company and allows the case to proceed to trial. Richard writes: APPEALS COURT VACATES DECISION DISMISSING IC MISCLASSIFICATION LAWSUIT BY FIT MODELS, ALLOWING THEIR CLASS ACTION TO PROCEED…

Misclassifying Workers No Longer Constitutes An Unfair Labor Practice 

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From JDSupra, Regina Petty and Grant Wills discuss a recent decision by the National Labor Relations Board (NLRB) that said misclassifying workers as independent contractors does not constitute an unfair labor practice. Regina and Grant write: Employers found to have misclassified employees as independent contractors will no longer face the prospect of unfair labor practice…

State Farm ‘confident’ agent suing under amended IWPCA is independent contractor, despite ‘misclassification’ claim

From the Madison-St. Clair Record, Karen Kidd reports that a State Farm agent has alleged that he was misclassified as an independent contractor. Karen writes: An Illinois-based insurance and financial services company said it is certain one of its Madison County agents is an independent contractor, despite the agent’s recently filed putative class action that…

Contingent Workforce Strategies 3.0 – IC compliance: Top issues for 2019 — Part 2

From Contingent Workforce Strategies, Eric Rumbaugh of of Michael Best & Friedrich LLP, continues in part two of his article on the top independent contractor issues in 2019. Eric writes; Arbitration. Following the United States Supreme Court decision in Epic Systems, businesses can, in most cases, effectively bar class litigation for employees and putative independent contractors. Arbitration has…

Contingent Workforce Strategies 3.0 – IC compliance: Top issues for 2019 — Part 1

From Contingent Workforce Strategies, Eric Rumbaugh of of Michael Best & Friedrich LLP, one for foremost experts on independent contractors in the country discusses top issues in 2019 in a two part series. In the first part, Eric discusses state tests and benefit plan issue. Eric writes: State tests and Dynamex. In Dynamex Operations West Inc. v. Superior…

Companies agree to pay $7.5 million in independent contractor misclassification settlement

Staffing Industry Analysts (SIA) reports that Cardinal Health and Kinray have allegedly agreed to settle an independent contractor misclassification suit with delivery drivers. SIA reports A proposed $7.5 million settlement has been reached in a lawsuit involving 115 pharmaceutical delivery drivers who claim they were misclassified as independent contractors and did not receive proper overtime…

Is your remote work situation actually legal?

Written by Sarah Archer The trend of working from home is growing rapidly with companies and employees alike recognizing the economic and emotional benefits of telecommuting. According to work from home statistics, remote work saves money, provides better work-life balance, and even leads to improved productivity. However, in their haste to take advantage of remote…