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Indiana: State Supreme Court Sheds Light on Independent Contractor Test for On-Demand Services

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January 23, 2019

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In Q.D.-A, Inc. v. Indiana Department of Workforce Development, the Indiana Supreme Court examined whether or not a large vehicle transportation driver qualified as an independent contractor.  Q.D.-A is a transportation matching service that coordinates independent drivers with manufacturers in order to transport large recreational or non-towable vehicles. Q.D.-A required the driver to attend a two-day training orientation on federal regulations and complete a driving test, but the driver was otherwise able to refuse jobs, work with other competitors, and negotiate his own pay.

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New York: Appellate Court Gives Gig Economy Business a Victory in Fight Against Claims of Independent Contractor Misclassification

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June 22, 2018

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In another victory for a “gig” economy business, delivery service coordinator, Postmates, successfully defended itself against a claim of independent contractor misclassification. In Matter of Vega, New York’s Third Department Appellate Court stated that a courier working in delivery services for Postmates’ food delivery service was correctly classified as an independent contractor for unemployment insurance purposes.

California: Employers Face New Hurdles with Independent Contractor Classifications

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April 30, 2018

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In Dynamex Operations West, Inc. v. Superior Court (Lee), the California Supreme Court created a new test for determining whether a worker is an employee or independent contractor for purposes of wage and hour claims, making it one of the strictest standards in the country. A class action was filed against a delivery service employer who converted its employee drivers to independent contractors in 2004 for economic reasons. The class alleged, in part, that they were misclassified and Dynamex failed to pay overtime, provide itemized wage statements, and reimburse business expenses.

U.S. Dept. of Labor Withdraws Guidance on Independent Contractors and Joint Employment

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June 7, 2017

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On June 7, 2017, in a somewhat surprising turn of events, the U.S. Secretary of Labor withdrew the Department’s previously issued informal guidance on independent contractors and joint employment.  The Department’s announcement stated that:

“Removal of the administrator interpretations does not change the legal responsibilities of employers under the Fair Labor Standards Act and the Migrant and Seasonal Agricultural Worker Protection Act, as reflected in the department’s long standing regulations and case law.”

Second Circuit: “Black Car” Drivers are Independent Contractors Under the FLSA

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April 21, 2017

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A recent Second Circuit case confirmed that New York City “black car” drivers—workers who provide high-end transportation services, e.g., limousines—are independent contractors under the Fair Labor Standards Act (“FLSA”).

New Definition of Independent Contractor Status in Arizona

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August 6, 2016

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Arizona H.B. 2114, a recent law providing Arizona employers and independent contractors tools to ascertain an individual’s employment status, became effective last month. Independent contractors now have the option to sign and date a Declaration of Independent Business Status (“DIBS”) to confirm their employment status.

U.S. DOL Issues Administrator’s Interpretation on Employee Misclassification

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The misclassification of workers as independent contractors has been an ongoing challenge for employers and workers alike. Due to the fact that contractors lack many workplace protections—such as minimum wage or workers’ compensation rights—and that misclassification results in lower tax revenues for the government, the U.S. Dept. of Labor (“DOL”) recently released Administrator’s Interpretation No. 2015-1. This interpretation, published on July 15, 2015, provides guidance on the existing rules for classifying employees.

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