Although misclassifying employees as independent contractors exposes companies to damages, steep penalties, and other liability, misclassification alone is not an Unfair Labor Practice under the National Labor Relations Act (“NLRA”), the National Labor Relations Board (“NLRB”) has held.
Read MoreThe National Labor Relations Board (“NLRB”) has re-instated its traditional independent contractor test, acknowledging that many franchisees and freelance contractors have significant opportunities for both economic gain and loss, and therefore should be treated as small businesses.
Read MoreThis week, the California Supreme Court made it more difficult for many employers to lawfully classify workers as independent contractors under California wage-and-hour law.
Read MoreLast month, the Second Circuit Court of Appeals (“Second Circuit”) dismissed black-car franchisees’ claims for overtime pay under the Fair Labor Standards Act (“FLSA”), holding the franchisees were independent contractors. The decision shows that courts will recognize and enforce independent contractor relationships where the proper agreements and structure are in place throughout the duration of the working relationship.
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