Blog Post
By Ruth A. Rauls

New Jersey’s Governor has taken aim at employee misclassification by signing into law four Bills that anoint heightened administrative powers to the New Jersey Department of Labor (“DOL”), require additional reporting requirements, and amend the New Jersey Insurance Fraud Act (“NJIFA”) to allow for monetary penalties and civil liability. These new laws are yet another move by the Garden State to crack down on misclassification of employees as independent contractors, a practice that Governor Murphy has characterized as unfair to workers. Although the new laws all focus on addressing misclassification, they do so in differing ways.

Blog Post
By Erik P. Pramschufer

Earlier this year, the Trump Department of Labor issued a new rule regarding how to classify workers as either employees or independent contractors under the Fair Labor Standards Act. In May, the Biden DOL revoked this proposed rule and confirmed its position that worker classification under the FLSA is meant to be governed by the ”economic realities” test. In this blog, we explain the
“economic realities” test and what these changes mean for employers, and identifies other worker classification issues businesses should be aware of.

Blog Post
By Harriet E. Cooperman

Uber drivers are “independent contractors” and not “employees” under the National Labor Relations Act (“NLRA”), according to an Advice Memorandum issued on May 14, 2019, by the Office of the General Counsel (“OGC”) of the National Labor Relations Board (“NLRB”).  Acknowledging the virtually unfettered control Uber drivers’ have over their cars, work schedules, and log-in locations, as well as their freedom to work for Uber’s competitors, the OGC determined that such autonomy provides the drivers with significant entrepreneurial opportunity, making them independent contractors. 

Blog Post
By Erik P. Pramschufer and Harriet E. Cooperman

In an opinion letter released on April 29, 2019 the Department of Labor Wage and Hour Division (WHD) provided guidance on the standards for establishing an employment relationship in today's modern gig economy. In doing so, the WHD took a narrow view, and found that digital platforms that connect individual service providers to customers are better characterized as "referral services," than employers.