independent contractor

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In a short order following oral argument, Judge Juan R. Sanchez of the Eastern District of Pennsylvania denied an FLSA defendant’s motion for summary judgment seeking a ruling that it properly classified its delivery couriers as independent contractors under the FLSA.  Spellman, et al. v. American Eagle Express, Inc., E.D. Pa., No. 10-cv-1764.

In so…

The Department of Labor often challenges an employer’s independent contractor classification, even when such classification is a matter of long-standing, industry practice.  Such disagreements can result in DOL audits or even DOL litigation seeking alleged unpaid minimum wage and overtime, as well as private enforcement actions. In a recent victory for employers involving litigation brought…

Among the types of service providers who consistently challenge their classification as independent contractors are exotic dancers, who allege that they are employees of the night club or clubs at which they perform. This allegation can give rise to a host of claims relating to wage-and-hour law, including minimum wage, overtime and gratuities-based claims, as…

As we have detailed many times, the legal determination as to when an individual providing services is performing work which must be compensated under the minimum wage and overtime provisions of the FLSA is not always simple. This inquiry and related questions were at issue in Rui Xiang Huang v. J&A Entm’t Inc., 2012 U.S.

Financial services and insurance industry employers regularly classify service providers, including financial advisors and independent insurance agents, as independent contractors, especially if such individuals cultivate and service their own clientele with a high degree of autonomy. Despite that autonomy, knowledgeable industry professionals and their counsel are aware of the legal risks associated with the independent contractor…

Whether a business can properly classify an individual as an independent contractor excluded from FLSA coverage is a question governed by the “economic realities” of the relationship between the individual and the business for whom she or he performed services. Under New York State Law, a related but distinct test examines the “degree of control exercised…

Of continued concern to governmental agencies – departments of labor, taxing authorities, workers compensation and unemployment boards – is the classification of workers as “independent contractors” and resulting exclusion of (and lost revenue from) such individuals from coverage under tax, benefits and wage statutes. Periodically, such agencies seek to coordinate their enforcement efforts with respect to…

California, like several other states including Massachusetts and New York, has historically been harsh on employers which abuse the independent contractor designation, classifying individuals who are integrated into their business and function as employees as contractors for the purposes of avoiding tax and wage costs. In fact, Federal Express’ now decade-long battle with courts and…