Independent Contractors

On October 13, 2022, the U.S. Department of Labor (DOL) published a Notice of Proposed Rulemaking (the Proposed Rule) that provides guidance on determining employee or independent contractor classification under the Fair Labor Standards Act (FLSA). Proper classifications are significant because independent contractors are not afforded wage-and-hour protections under the FLSA and/or applicable state law, such as minimum wage for all hours worked or overtime compensation for over 40 hours worked in one workweek. Misclassification can subject companies and organizations to class and collective actions and expose them to significant liability.Continue Reading US Department of Labor Proposes Independent Contractor Rule

On September 1, 2021, Massachusetts Attorney General Maura Healey approved two potential ballot initiatives (Initiative 1, Initiative 2) regarding the classification of app-based drivers. If passed, either initiative would enact the Relationship Between Network Companies and App-Based Drivers Act (the “Act”) and classify such drivers as independent contractors rather than employees.
Continue Reading Massachusetts Eyes Gig Economy Driver Classification Ballot Initiative

The Department of Labor (DOL) announced in May 2021 that it was withdrawing the rule called “Independent Contractor Status Under the Fair Labor Standards Act.” As anticipated, the Biden administration rescinded this Trump-era rule. Companies with questions on their relationships with independent contractors should consult with legal counsel to make sure the company is current

On January 14, 2021, the California Supreme Court decided Vazquez v. Jan-Pro Franchising International, Inc. The decision holds that the ABC test used to determine independent contractor versus employee status for purposes of California’s Wage Orders, announced in Dynamex Operations West, Inc. v. Superior Court (2018) 4 Cal.5th 903, applies retroactively. Read the full update