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California Truck Drivers Reach $9.5 Million Settlement in Misclassification Suit
In California and across the country, truck drivers are at risk of being misclassified as independent contractors. This has negative implications for drivers’ taxes and workplace protections, as independent contractors are not subject to the same workplace regulations or protections as employees. For workers in labor-intensive jobs, such as truck drivers, this can cause serious issues. But truck drivers in California have recently made strides forward in advocating for their employment status.…
Wal-Mart Overtime Suit Denied Summary Judgment
On January 24, 2022, U.S. District Judge Madeline Cox Arleo denied Wal-Mart’s motion for partial summary judgement in Sundel Quiles, et al. v. Wal-Mart. The action arises from allegations that Wal-Mart misclassified the Plaintiffs as overtime-exempt employees in violation of the New Jersey State Wage and Hour Law (“NJWHL”) and New York Labor Law (“NYLL”). Wal-Mart sought to limit the claims that Plaintiffs could bring to trial by arguing that even if Wal-Mart…
NCPA Files Misclassification Claim on behalf of California Student-Athletes
On February 8, 2022, the National College Players Association (“NCPA”) filed an unfair labor practice charge with the National Labor Relations Board (“NLRB”) alleging that the University of California, Los Angeles (“UCLA”), the University of Southern California (“USC”) (together, the “Universities”), the Pac-12 Conference, and the National Collegiate Athletics Association (“NCAA”) misclassified Division I football and basketball players as student-athletes rather than employees of the university, denying them their rights under the…
Matco Tools Misclassification Suit Reaches $15.8 Million Settlement
On January 19, 2022, John Fleming (“Plaintiff”) requested preliminary approval of a $15,846,423 settlement (the “Settlement”) on behalf of himself and a class of other current and former distributors of Matco Tools Corporation (“Matco Tools” or “Defendant”). The Settlement resolves allegations that Plaintiff and other class members were misclassified as independent contractors instead of employees of Matco Tools, resulting in unreimbursed business expenses, unlawful deductions, unpaid overtime compensation, missed meal and rest…
Ruling Forces Ridesharing Services to Reclassify Drivers as Employees in California
The future of ridesharing services, such as Uber and Lyft, in California are very much in jeopardy as on Thursday, a California appeals court stated that the two companies must reclassify their drivers as employees rather than independent contractors. The decision, which reaffirms a lower court’s ruling, gives Uber and Lyft 30 days to comply with the ruling, assuming they do not appeal the decision. For years, ridesharing services have…
Applying California’s ABC Test to Determine Employee Status
The assessment of whether a worker is an independent contractor or an employee is a fact-intensive inquiry. Moreover, different tests apply depending on the law. Thus, while a worker may be classified as an independent contractor under federal tax law, the same worker may be classified as an employee under the Fair Labor Standards Act, the federal law covering minimum wage and overtime. The three general categories of tests are: (1)…
Avoiding the Misclassification of Workers Through ABC Tests
The ABC test has given employers a three-pronged definition to categorize a worker as either an employee or an independent contractor. More than 20 states have enacted elements of the ABC test, which was initially introduced after a 2018 court case in California established its new criteria. The criteria lay out three elements that must be evaluated to determine the status of a worker. If the worker meets all three…
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