Archives: Independent Contractors

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California’s New “ABC Test” For Independent Contractors Is Anything But Elementary

On April 30, the California Supreme Court adopted in Dynamex Operations West, Inc. v. Superior Court the so-called “ABC test” to determine whether individuals are employees or independent contractors for purposes of determining the applicability of California’s Wage Orders.  The Wage Orders govern important employment issues including California’s unique daily overtime regimen and its requirements … Continue Reading

California Federal Court Finds That “Gig Economy” Workers Are Independent Contractors, Not Employees (US)

Uber, Lyft, Airbnb, Postmates, DoorDash.  All are companies participating in what has been labeled the “gig economy,” where tasks are performed by workers on a short-term or freelance basis rather than through long-term or permanent employment.  As more people participate in this new, mostly smartphone application or Internet-based work model, litigation has followed centering on … Continue Reading

US Department of Labor Withdraws Obama-Era Interpretation Letters On Key Wage And Hour Issues

On June 7, 2017, the US Department of Labor (DOL) withdrew its 2015 Administrator’s Interpretation on “independent contractor” status under the Fair Labor Standards Act (FLSA) and its 2016 Administrator’s Interpretation for determining “joint employment” under the FLSA. The two guidance memos specifically were intended to increase liability for employers under the Fair Labor Standards … Continue Reading

Uber’s $100 Million Settlement Gets Wrecked

In a 35 page Order [PDF] issued on Thursday, August 18, Judge Edward M. Chen dealt a surprising blow in O’Connor v. Uber Technologies, Inc.:  he denied preliminary approval for a $100 million settlement.  In no uncertain terms, Judge Chen said the current terms of the settlement are “not fair, adequate, and reasonable.”  In the … Continue Reading

Driving Uber Crazy: Worker Class Action Lawsuits Ramp Up

Since it was launched back in 2009, Uber Technologies, Inc. has been in the national spotlight for developing and implementing its revolutionary “ridesharing” mobile application. Uber continues to appear in headlines for a multitude of reasons, many of which are desirable, and at least one of which is not: getting sued by its workforce. Despite … Continue Reading

After Further Review… No Overtime for New York Contract Attorneys Engaged in Document Review Assignments

The latest chapter in a series of lawsuits filed by temporary contract attorneys against their employing law firms was written by Judge Ronnie Abrams of the United States District Court for the District of New York. As the final seconds ticked down towards the end of 2015 last week, the clock also struck midnight on … Continue Reading

Independent Contractor or Employee? Good Odds for Australian Wagering Group on Appeal

With the AFL Finals fast approaching, the office tips are bound to get a little heated! However, you may want to think twice before taking too big a punt on whether a worker in Australia is an employee or an independent contractor. In the recent appeal case of Tattsbet Limited v Morrow, the Full Court … Continue Reading

The beginning of the end for personal service companies in the UK?

HMRC issued a consultation document on 17 July 2015 to explore options for tightening up IR35, the intermediaries legislation that aims to tackle tax avoidance through disguised employment. IR35 requires individuals working through an intermediary (e.g. a personal service company (PSC)) to pay broadly the same tax and NICs as any other employee, where they … Continue Reading

Reasons to Cheer – California Governor Signs Bill Requiring Professional Sports Franchises to Classify Cheerleaders as Employees

If you enjoy employment law AND sports, you may be enjoying this summer more than any other; and if you are also an aficionado of employee classification issues then I KNOW you are enjoying this summer more than any other. Typically, the headlines in the sports world during the summer months are dominated by free … Continue Reading

Employee or Independent Contractor? US Department of Labor Provides New Guidance

“[M]ost workers are employees under the [Fair Labor Standards Act’s] broad definitions.” The debate over classification of workers as employees versus independent contractors has yet another chapter.  Last month, it was the California Labor Commissioner who sent ripples across the rideshare industry by telling Uber Technologies, Inc. that its drivers are employees, not independent contractors.  … Continue Reading

Managing Directors and certain board members in Spain may need to revisit their contracts

Reforms of the Spanish Companies Act (‘Ley de Sociedades de Capital’) which came into force at the end of 2014 introduced new regulations challenging the historical professional relationships of members of Boards of Directors.  Now that we are in the middle of the Annual General Meeting season in Spain, perhaps it is time for a … Continue Reading

California Labor Commissioner Puts the Brakes on Uber

Agency says drivers are employees, not independent contractors In a move that could potentially disrupt a burgeoning industry, a hearing officer for the California Labor Commissioner decided earlier this month that a former Uber driver is an employee under California law, not – as Uber contends – an independent contractor.  (For those not familiar with … Continue Reading
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