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Over the last decade, there has been a significant amount of litigation over how to determine if multiple companies are joint employers of a workforce. Joint employer status can create significant liability issues for the secondary employer in areas such as wages and safety matters. The rules governing that determination may be about to change.
There’s a growing tendency for workers to request mobility in the labor market. Coupled with this is a growing tendency for businesses to classify workers as independent contractors instead of employees. This phenomenon has been dubbed a “gig” economy. Recently, Uber agreed to pay $100 million to the state of New Jersey to settle a […]
As the U.S. Department of Labor (DOL) prepares to publish a new proposed rule on how individuals can be classified, employers are being warned to expect a tougher time justifying an independent contractor classification. The DOL will publish a Notice of Proposed Rulemaking on October 13 aimed at clarifying how workers can be classified under […]
There’s been an ongoing battle between employers and the U.S. Department of Labor (DOL) over when someone is considered an independent contractor versus an employee. A recent decision from the U.S. 8th Circuit Court of Appeals to reverse summary judgment (dismissal without trial) in favor of the DOL gives employers some guidance and reason for […]
On September 22, 2020, the federal Department of Labor (DOL) released a Notice of Proposed Rulemaking (NPRM) regarding rules for employers to follow when classifying a worker as an independent contractor or an employee under the Fair Labor Standards Act (FLSA).
As most of us know by now, the percentage of individuals who are working as independent contractors either part time or full time continues to grow. Many employers have embraced this trend and continued to hire more and more contractors who work alongside the regular labor force and meet specific needs. Other employers opt for […]
In some recent posts, we’ve been talking about the classification of workers in organizations. In general, it’s pretty clear cut whether a worker is an employee or an independent contractor and the IRS explains some criteria for distinguishing between the two.
In a previous post, we talked about the decision companies face in classifying workers as independent contractors—those who receive a 1099 for tax purposes—and traditional employees who receive a W2.
A common criticism of the gig economy is that companies treat those working in it less favorably than traditional employees due to their status as independent contractors.
Dreams of flexible schedules, the ability to work remotely, and building new skill sets while working for multiple companies—at the same time—are all real reasons why full-time workers are choosing to turn to the gig economy as a main source of employment.