On October 13, 2022, the Wage and Hour Division of the U.S. Department of Labor published a Notice of Proposed Rulemaking regarding a new standard for determining whether a worker is an employee or an independent contractor under the Fair Labor Standards Act.
On September 21, 2022, Burlington Coat Factory agreed to pay $11 million to settle a class action lawsuit involving claims that the Company misclassified over 1,700 Assistant Store Managers and failed to pay overtime wages. The settlement comes after the Company settled two related actions in 2020 for nearly $20 million.
On September 23, 2022, the Pennsylvania Department of Labor & Industry’s Joint Task Force on Misclassification of Employees (“Joint Task Force”) held its ninth meeting of the year. The Joint Task Force, comprised of seven bipartisan members and their designees, was created in October 2020 as a result of Act 85 (House Bill 716) to evaluate the status of worker misclassification in Pennsylvania and develop recommendations to present to the Pennsylvania General Assembly. Since its first assembly in January 2021, the Joint Task Force has heard many comments and presentations from interested parties representing workers, employers, and enforcement entities.
Pennsylvania’s Joint Task Force on Misclassification of Employees (“Task Force”) held its eighth meeting of the year on August 26, 2022, the fifth in-person meeting since its assembly in January 2021. The Task Force is a bipartisan group of nominated volunteers representing business, labor, and government seeking to publicize a comprehensive understanding of worker misclassification and its consequences.
On July 8, 2022, the United States District Court for the Western District of Washington denied a motion for class certification filed by Amazon Flex Drivers in a misclassification suit against Amazon.com, Inc. and Amazon Logistics, Inc.
In a unanimous opinion issued on June 14, 2022, the Massachusetts Supreme Judicial Court found it was an error for the Massachusetts Attorney General to certify two proposed ballot initiatives to redefine the employment classification of rideshare app drivers.
Uber increases its leverage and bargaining power regarding bringing claims to arbitration by inserting mandatory arbitration provisions in consumer and employee agreements. These provisions serve to limit the available options for dispute resolution and thereby leave opposing parties little choice but to cooperate with Uber. Yet despite the precedent-evading benefits of arbitration, the possibility of mass arbitration presents Uber with different risks.
The lawsuit, filed on December 23, 2021, in the United States District Court for the Western District of Missouri, alleges that Briggs illegally and discriminately withheld overtime pay from workers with H-2A visas by purposely misrepresenting them as agricultural workers.
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.
On February 17, 2022, a class of 1,322 California drivers announced an $8.43 million settlement with Uber Technologies, Inc. (“Uber”) to resolve claims Uber intentionally misclassified its drivers as independent contractors between February 28, 2019 and December 17, 2020.
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