Tag Archives: Court Cases/Decisions of Significance

February 2013 Monthly Independent Contractor Compliance and Misclassification News Update

February 2013 In the Courts: Lowe’s Home Centers is sued by construction material installer engaged in installing fences, roofs, siding and decks for Lowe’s customers in a class action misclassification lawsuit. The installer seeks to represent himself and  all other similarly … Continue reading

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Unemployment Benefit Claims and Independent Contractor Misclassification Liability: A Single Claim by One Worker Can Lead to Disastrous Results

It is rare for a business to challenge an administrative determination concerning a single worker’s claim for unemployment insurance benefits. Indeed, many employers tend to delegate responsibility to handle administrative proceedings before state unemployment offices to companies providing “unemployment claims services.” This is … Continue reading

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KGB USA, Text Message and Internet Information Provider, Settles Independent Contractor Misclassification Claim with U.S. Department of Labor for $1.3 Million

Last week, kgb USA, which operates a text message and Internet-based information service, consented to the entry of a federal court judgment to pay $1.3 million in unpaid minimum wage and overtime wages to its 14,500 current and former “Special … Continue reading

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Staffing and Workforce Solutions Company Using Independent Contractors Face Misclassification Liability and Expose Clients to Undue Risks

This month there have already been two cases in the staffing and workforce solutions industry that highlight the risks posed to that industry and their clients where the workers being referred are paid on a 1099 basis. One case arose in … Continue reading

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New Federal Worker Misclassification Study: U.S. Department of Labor to Question Workers About Their Knowledge of Independent Contractor Misclassification

Buried in the Federal Register on January 11, 2013 is a proposal for the U.S. Department of Labor to conduct a study to “better understand employees’ experience with worker misclassification” by “measur[ing] workers’ knowledge about their current job classification, and … Continue reading

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