States Clarify Worker Classification in the Sharing Economy

Several states have given businesses in the sharing economy something to celebrate: legislation that would clarify the independent-contractor status of individuals who obtain client opportunities through technology platforms. These legislative initiatives take two forms, namely, bills narrowly focused on transportation network company drivers (e.g., individuals who drive for ride-sharing companies such as Uber and Lyft), and broader bills that apply to individuals… Read more →

Wage Theft Prevention and Wage Recovery Act, H.R. 4763 and S. 2697

Companies doing business with independent contractors would be exposed to heightened civil and criminal sanctions if determined to be the employer of such contractors under the Wage Theft Prevention and Wage Recovery Act, introduced in the U.S. House of Representatives by Representative Rosa L. DeLauro (D-Conn), H.R. 4763, and in the U.S. Senate by Senator Patty Murray (D-Wash), S. 2697…. Read more →

President Obama’s FY 2017 Budget Proposal

On February 9, 2016, President Obama released his Administration’s budget proposal for Fiscal Year 2017. The following identifies the provisions that we believe are most relevant to companies that do business with independent contractors. The proposal descriptions are taken verbatim from the budget proposal. Any commentary is reflected in underlined italics.  1.  Internal Revenue Service Repeal Section 530 Improve Compliance… Read more →

Trucking Company Declares Bankruptcy Citing Worker Misclassification Lawsuits

One of Southern California’s largest port trucking companies filed for chapter 11 bankruptcy protection on March 14, 2016. The company reported that downward pricing pressure and costs associated with worker misclassification litigation became insurmountable. The company reportedly lost eleven misclassification claims before the California Labor Commission and fourteen lawsuits in state court, which resulted in the company spending millions of… Read more →

Louisiana Bill Would Dramatically Increase Penalties for Worker Misclassification

A bill recently introduced in the Louisiana House of Representatives would increase penalties for worker misclassification to extreme levels. As a result, the bill – H.B. 665 – would make it more risky for companies to do business with independent contractors. H.B. 665 would amend the Louisiana unemployment compensation law by increasing the penalties the Unemployment Administrator may assess against… Read more →