The "Gig" is Up: DOL Proposes Rule That Would Classify More Independent Contractors as Employees

The U.S. Department of Labor (DOL) has proposed a rule that would make it more difficult for companies to treat workers as independent contractors. The proposed rule would return to a "totality-of-the-circumstances" analysis of the economic realities test—in which the factors do not have a predetermined weight and are considered in view of the economic reality of the whole activity. The DOL said it will consider, among other factors, the worker's "opportunity for profit or loss, investment, permanency, the degree of control by the employer over the worker, whether the work is an integral part of the employer's business, and skill and initiative." More ›

The 12 days of California Labor & Employment Series – Day 10: AB 5 Exemption Extensions

In the spirit of the season, we are using our annual "12 days of the holidays" blog series to address new California laws and their impact on California employers. On this tenth day of the holidays, my labor and employment attorney gave to me: ten lords a-leaping and AB 1506 and 1561. More ›

Florida Boosts Minimum Wage Rate, Mandates Reporting Requirements for Businesses Using Independent Contractors

On September 30, 2021, Florida’s hourly minimum wage rate increased from $8.56 to $10.00. For the next five years, the hourly minimum wage in Florida will increase by $1.00 each year until it reaches $15.00 per hour in 2026. This increase came as the result of Amendment 2, passed on November 3, 2020, by an overwhelming majority of Florida voters. More ›

DOL Withdraws Trump-Era Independent Contractor Rule

During the Trump administration, the Department of Labor (DOL) issued a new rule regarding the classification of independent contractors. Designed to streamline how a company determines whether a worker is an employee or independent contractor, the rule narrowed the factors in the "economic realities" test and focused the analysis on the two "core factors" of control and the opportunity for profit and loss. The proposed regulations were set to go into effect on March 8, 2021. With the change in administration, the DOL initially pushed the effective date back to May 7, 2021, to allow for further review and consideration. The DOL announced on May 5, 2021, that it is withdrawing the rule altogether. More ›

U.S. House Seeks Drastic Revision of Labor Law with Protect the Right to Organize Act of 2021

In a Hinshaw Insights for Employers Alert, we consider the drastic revisions to the National Labor Relations Act and federal labor policy contemplated by the Protect the Right to Organize Act of 2021. The bill was passed with little fanfare by the U.S. House of Representatives last month.

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California Court of Appeal Rules Alleged Contractor Misclassification Not Enough to Justify Class Action

On Friday, March 12, 2021, the California Court of Appeal issued a ruling in Wilson v. The La Jolla Group that addresses the appropriate scope of class treatment for employee misclassification under Dynamex Operations West, Inc. v. Superior Court. Dynamex—and its later enactment into statute in the form of AB 5—established the ABC test for determining independent contractor status. More ›

DOL Delays Effective Date of Test for Determining Independent Contractor Status

Under the administration of former President Donald Trump, the Department of Labor (DOL) proposed new regulations to simplify the test for determining whether a worker is an employee or independent contractor. The regulations were set to go into effect on March 8, 2021. More ›

Hinshaw's 12 Days of California Labor & Employment Series – Day 8: Additional Exemptions for Worker Classification

In the spirit of the season—and keeping some semblance of normal—we are using our annual "12 days of the holidays" blog series to address new California laws and their impact on California employers. On this eighth day of the holidays, my labor and employment attorney gave to me: eight maids a-milking and AB 2257.

Deemed an emergency statute, AB 2257 went into effect immediately upon the Governor's signature on September 4, 2020. Focusing on worker classification, the bill provides additional exemptions to AB 5, which concerned the classification of independent contractors. More ›

DOL Proposes New Regulations for Determining Independent Contractor Status under FLSA

Last week, the Department of Labor (DOL) proposed new regulations designed to make it easier for companies to determine whether workers can be classified as independent contractors. The DOL proposed an "economic reality" test to determine whether a worker is an employee or independent contractor under the Fair Labor Standards Act (FLSA). More ›

Medical Staff Member Deemed Independent Contractor, Not Eligible for Title VII Protection

When assessing potential exposure for their employer-clients under federal labor and employment statutes, employment and health care attorneys often must start with the basics. That determination of employment status becomes even more important in medical facilities, such as hospitals, which have multiple and complex levels of workers with varying levels of skills and responsibilities. This is especially true with independent medical staff members who may have other contractual relationships with hospitals—such as recruitment agreements or administrative services contracts—which can complicate these questions.

The Ninth Circuit recently confronted such a situation when deciding whether an independent member of the medical staff, who had a separate recruitment agreement as well as an on-call services agreement, was an employee or independent contractor. This decision is important for the litigants, because independent contractors ordinarily are not covered by Title VII. More ›