There have been many examples of the tension between the “gig economy” and traditional labor laws. Most of the companies like Uber or Grubhub choose to classify their drivers as independent contractors instead of employees, which eliminates obligations like overtime under the Fair Labor Standards Act. The Seventh Circuit this week dealt with such a
New York Bans Inquiry into Salary History
New York is now the latest state to ban all employers from asking about a job applicant’s salary and wage history. The law, which went into effect on January 6, 2020, expands the reach of anti-discrimination laws in New York state. At least 12 other states similarly ban such questions or otherwise regulate the
But We Tried to Do It Right! Stand-Alone Misclassification of Independent Contractor May Not Be a Violation
Recently, the National Labor Relations Board (NLRB) issued another pro-employer decision, resolving an issue at the forefront of employment law, independent contractor classification. In Velox Express, Inc. and Jeannie Edge, the NLRB determined that misclassification of an employee as an independent contractor alone does not violate the National Labor Relations Act (NLRA).
Background
Velox
Recent Developments in the Battle of Independent Contractors vs. Employees
We’ve posted on this topic several times before but the battle between independent contractors and employees continues.
Here’s a brief refresher on the basics of why proper classification of employees as independent contractors or employees matters:
- Employees (not independent contractors) are entitled to workers’ compensation and unemployment benefits.
- Employees (not independent contractors) have taxes withheld
Florida DEO Says Uber Drivers are Independent Contractors
For anyone following the employee versus independent contractor battles, Uber just scored in Florida. The Florida Department of Economic Opportunity (DEO) says Uber drivers are independent contractors and are not entitled to unemployment benefits when Uber revokes their app. In fact, per the opinion, “Uber is no more an employer to drivers than is
Upcoming Webinar: Independent Contractor or Employee? Avoiding Worker Misclassification Confusion
Is your company at risk of being told that your independent contractors are actually employees? If the Department of Labor (DOL) breaks this news to you, what are the labor implications? What are the tax obligations? What are your legal obligations to a third party?
Join Bruce P. Ely, Summer Davis, and me next
President Obama Jumps On Netflix Bandwagon And Mandates Paid Sick Leave For Federal Contractors
In early August, Netflix announced that in addition to offering unlimited sick and vacation days, it would also allow employees to take unlimited paid parental leave. Refusing to be upstaged by the private sector, on Labor Day President Obama signed an Executive Order requiring all businesses that contract with the federal government to begin providing
FedEx Workers Ruled Employees, Not Independent Contractors – and the IRS Weighs In
Developments continue to come almost daily about misclassification of employees as independent contractors. Wage and hour cases, tax rulings, and discrimination charges all are part of the mix.
We have blogged about worker misclassification extensively, covering the DOL guidance from July of 2015, the treatment of Uber and Lyft drivers, and, um, “entertainers”
Play Ball and Win ‘Em All—Overtime Hits the Big Leagues
Continuing the trend of expanding Fair Labor Standards Act (FLSA) overtime rules outside the traditional realm of hourly manufacturing or retail workers, two recent events show that employers should be aware that exemption and independent contractor issues are on the forefront of labor scrutiny.
Two bits, four bits, six bits a dollar—pay us more or
Employees vs. Independent Contractors: The DOL Weighs in on Worker Misclassification
Yesterday, the U.S. Department of Labor (DOL) issued an Administrator’s Interpretation that provides some important new guidance on the standard for classifying workers—as employees or independent contractors—under the Fair Labor Standards Act (FLSA). And make no mistake: This guidance clearly intends to make it more difficult than ever for employers to classify their workers