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 in a class action lawsuit alleging the Company misclassified delivery drivers as independent contractors and failed to pay overtime wages.

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Joint Task Force on Misclassification of Employees – Pennsylvania Department of Labor & Industry

Pennsylvania’s Joint Task Force on Misclassification of Employees (“Task Force”) held its fourth meeting of the year on April 22, 2022. This meeting occurred one month after the Task Force released its Annual Report, which outlined 15 unanimous recommendations to tackle employee misclassification. The Task Force plans to submit its final report in December 2022.

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Matco Tools Misclassification Suit Reaches $15.8 Million Settlement

On January 19, 2022, Plaintiff John Fleming requested preliminary approval of a $15,846,423 settlement on behalf of himself and a class of other current and former distributors of Matco Tools Corporation. The Settlement resolves allegations that Plaintiff and other class members were misclassified as independent contractors instead of employees, resulting in violations of California labor law.

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photo: person filling out a paper application form

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.

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