A cable installation company recently entered into a consent judgment with the U.S. Department of Labor, agreeing to pay over $1 million in back wages and liquidated damages to nearly 200 workers. [here] The consent judgment also enjoins the company -- and its former vice president -- from future violations of the FLSA.
On July 2, 2012, the California Court of Appeal affirmed a trial court ruling denying class certification to a group of newspaper carriers claiming they were misclassified as independent contractors. In Sotelo v. Medianews Group, Inc., the Court of Appeal concluded that plaintiffs’ proposed class of newspaper carriers could not be certified because the class was not ascertainable and common issues of law and fact did not predominate.
Owners and operators of gentleman’s clubs recently received a new arrow in their quiver in the ongoing dispute over a question that has created a barrage of lawsuits across the industry – “Are exotic dancers employees?” A decision from the United States District Court for the Eastern District of Arkansas on July 12 answered this question in the negative, holding that exotic dancers were not employees under the FLSA or Arkansas Minimum Wage Act.
Independent contractors are a vital and growing source of strength in California’s economy, according to a new report co-sponsored by the California Foundation for Commerce and Education (CFCE).
Insurance agents and other types of salespeople with the discretion to determine when, how, and whether to sell a company’s products may properly be classified as independent contractors, according to the California Court of Appeal’s recent holding in Arnold v. Mutual of Omaha Insurance Company — the first California decision to detail the circumstances under which insurance agents, and potentially other types of salespeople, may be classified as independent contractors. The Arnold court utilized California’s Borello “control test” -- a test similar to other control tests used in jurisdictions around the country -- to determine whether the plaintiff was correctly classified as an independent contractor. The court’s analysis provides a checklist of relevant factors for employers to consider when determining whether a particular worker should be classified as an independent contractor or an employee, as well as a roadmap for summary judgment in cases where the independent contractor status is challenged.
A new California law has added to the growing government arsenal of weapons targeting misclassification of workers. Senate Bill 459 provides for fines of between $5,000 and $25,000 on employers who misclassify workers as independent contractors.