Uber to Arbitrate Misclassification Claims in Illinois
On February 23, 2022, U.S. District Judge Martha Pacold granted Uber’s motion to compel arbitration in a lawsuit over the classification of its employees under federal wage laws.
California Truck Drivers Reach $9.5 Million Settlement in Misclassification Suit
XPO Logistics has agreed to pay $9.5 million in a settlement with California truck drivers in a lawsuit over alleged worker misclassification.
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 and New York Labor Law.
NCPA Files Misclassification Claim on behalf of California Student-Athletes
On February 8, 2022, the National College Players Association filed an unfair labor practice charge with the National Labor Relations Board alleging that the NCAA, along with certain universities, misclassified Division I football and basketball players as student-athletes rather than employees of the university, denying them their rights under the National Labor Relations Act.
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.
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.
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.
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 […]
