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Showing posts with the label misclassification

Wage & Hour Claims Still Going Strong and Yet…

Back in 2011, I wondered aloud: Might the impact of new arbitration decisions from the U.S. Supreme Court bring about the end to big wage & hour class actions? At the time, I said it would be premature. Seven years later – what’s changed? Well, as it turns out, wage & hour class actions are not dead. Indeed, based on some statistics, they’re as costly as ever. Earlier this year, the Workplace Class Action Litigation report noted that just the top  ten class action settlements totalled over $2.72  billion in 2017 . I’d say the class action is still very much alive and well. Yet there are still signs on the horizon that employers may be able to fight back a bit on these claims. Late last month, the Ninth Circuit shot down a potential class action against Uber, on the grounds that the arbitration provision barred class actions.   It’s a significant victory for the company and highlights a way for companies to push back against the ...

DOL vs. DRS: Battle of the Employee / Independent Contractor Misclassification Tests

Employers who want to (or need to) use independent contractors often scratch their heads at a disconnect – how do you determine who is an independent contractor?  I recall at one speaking engagement years ago, an employer who came up to me and asked: “So are you saying that there are TWO tests to determining if someone is an independent contractor?” Yes, that’s exactly what I was saying. The Connecticut Department of Labor and the Connecticut Department of Revenue Services (the state equivalent to the IRS) have each developed tests for determining if someone is an employee vs. an independent contractor. And they are not the same. I’ve looked at this before, but my colleagues at Shipman & Goodwin — who now host a terrific new little blog on tax law (www.cttaxalert.com) — have posted about it too — but this time from the perspective of tax lawyers.  Worth your time. The post DOL vs. DRS: Battle of the Employee / Independent Con...