News Notes: Microsoft Loses Independent Contractor Class Action Lawsuit

Reaffirming its decision from last fall, the federal Ninth Circuit Court of Appeal covering California has ruled that employees who were misclassified as independent contractors by Microsoft are eligible to participate retroactively in the company’s lucrative stock purchase program and possibly its pension plan as well. Part of Microsoft’s problem was that its forms and other paperwork didn’t anticipate that hundreds of freelancers might wind up being considered employees-and therefore eligible for generous employee benefits. The damages could be astronomic in light of the skyrocketing value of Microsoft stock. The decision could also have expensive repercussions for other employers who incorrectly treat employees as independent contractors and exclude them from benefit programs without proper planning.