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Third Circuit Upholds Class Certification In Sleepy’s Drivers Wage Suit
On June 12, 2023, The Third Circuit Court of Appeals upheld the 2022 decision of the United States District Court for the District of New Jersey to certify a class of drivers in a wage and hour suit against Sleepy’s LLC (“Defendant” or “Sleepy’s” or the “Company”), rejecting Sleepy’s argument that drivers’ misclassification claims require individualized inquiry to determine whether each class member was an employee or an independent contractor. The Third…
Ninth Circuit Victory for California Workers Against Uber and Postmates
On March 17, 2023, a panel of the Ninth Circuit Court of Appeals delivered the latest in a series of decisions on California Assembly Bill 5 (“A.B. 5”), ruling that the United States District Court for the Central District of California had erred in dismissing equal protection claims filed by Uber Technologies, Inc. and Postsmates, Inc. (together, “Plaintiffs”) against the State of California and the California Attorney General (together, “Defendants”).…
Grubhub Driver Ruled an Employee, Not Independent Contractor
On March 30, 2023, U.S. District Judge Jacqueline Scott Corley held that Grubhub Inc. (“Grubhub” or the “Company”) wrongly classified former delivery driver Raef Lawson as an independent contractor instead of as an employee, in violation of California’s minimum wage law. Throughout the eight-year litigation, Grubhub argued that its delivery drivers fall within the business-to-business exemption to the three-pronged classification test outlined in Dynamex Operations West Inc. v. Superior Court, that allows…
PA Judge Denies Cannabis Company’s Motion to Dismiss Delivery Driver Misclassification Claims
On March 7, 2023, the Honorable William S. Stickman IV of the Western District of Pennsylvania denied a motion to dismiss filed by medical cannabis company FarmaceuticalRX LLC (“FRX” or the “Company”) in a class action lawsuit alleging the Company misclassified delivery drivers as independent contractors and failed to pay overtime wages. In August 2022, FRX delivery drivers Clint Goodenow, Jason Hummel, Alex Fitzgerald, Brian DeMarco, and Mark Williams (collectively, “Plaintiffs”) filed…
Los Angeles NLRB Says College Athletes Are Employees
In February 2022, the National College Players Association (“NCPA”), an advocacy group composed of current and former college athletes, filed an unfair labor practice charge against the University of California Los Angeles, the University of Southern California, the Pac-12 Conference, the National Collegiate Athletics Association (“NCAA”), and all Division I football, men’s basketball, and women’s basketball programs for violations of the National Labor Relations Act (“NLRA”). The NCPA alleges that…
Rover Workers Score $18 Million Deal Over Misclassification Claims
On February 8, 2023, A Place for Rover, Inc. (“Rover” or the “Company”) agreed to pay $18 million to resolve allegations that the Company unlawfully misclassified its hourly workers as independent contractors in order to skirt certain minimum wage and benefit laws. Rover is an app-based platform where users can connect with and book dog sitters or walkers. The Rover app includes dog boarding, dog walking, house sitting and doggy…
Misclassified Truck Drivers Secure a $4.75 Million Settlement After a Decade of Litigation
On December 14, 2022, the honorable Samuel H. Mays, Jr. of the United States District Court for the Western District of Tennessee granted final approval to the settlement (“Settlement”) of a class action lawsuit against freight and trucking business Comtrak Logistics, Inc. (“Comtrak” or “Defendant”). The Court previously granted preliminary approval to the Settlement on July 21, 2022. The nine-year litigation accused Comtrak (presently known as Hub Group Inc.) of misclassifying its…
FLSA: Ninth Circuit Holds L.A. Homecare Workers are Eligible for Overtime Compensation
On November 4, 2022, a three-judge panel of the United States Court of Appeals for the Ninth Circuit held that for the purposes of the Fair Labor Stands Act (“FLSA”), Los Angeles County (the “County”) qualifies as a joint employer of In-Home Supportive Services (“IHSS”) providers and is therefore liable for failing to pay overtime compensation, partially reversing the Central District of California’s summary judgment order in favor of the…
Pennsylvania Department of Labor & Industry’s Joint Task Force on Misclassification of Employees Concludes Final Meeting
On December 16th, 2022, the Pennsylvania Department of Labor & Industry’s Joint Task Force on Misclassification of Employees (“Joint Task Force”) held its twelfth meeting of the year. The Joint Task Force was created when Pennsylvania Governor Tom Wolf signed Act 85 into law in October 2020, which called for the creation of a Joint Task Force to be composed of seven members (or their designees) and chaired by the…
Seventh Circuit Reverses Motion to Dismiss Truck Driver’s Misclassification Claims
On August 3, 2022, the United States Court of Appeals for the Seventh Circuit reversed a Wisconsin federal court’s dismissal of a truck driver’s misclassification claims against hauling company Schneider National Inc. (“Schneider” or “the Company”). The Seventh Circuit found that driver Eric Brant (“Plaintiff”) plausibly alleged a viable claim under the Fair Labor Standards Act (“FLSA”), a federal law that protects workers from unfair employment practices by establishing requirements for minimum…
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