Understanding Employee Misclassification Businesses are required to determine whether individuals providing services are employees or independent contractors. The distinction sometimes can be confusing, and employee misclassification can have serious consequences for both workers and employers. [embed]https://youtu.be/1-ZC9G2zcG0[/embed] What’s the difference between an employee and an independent contractor? The Fair Labor Standards Act (FLSA) sets guidelines for detecting misclassification. Generally, one is an independent contractor if the worker is free from control or direction of the services involved, and if the worker is…
What Is the EEOC’s Sexual Harassment Lawsuit Against FedEx? The U.S. Equal Employment Opportunity Commission (“EEOC”) has announced a sexual harassment lawsuit against the Federal Express Corporation (“FedEx”) in violation of Title VII of the Civil Rights Act of 1964. According to the EEOC’s complaint, a female administrative employee at FedEx’s St. Rose, Louisiana facility was subjected to years of sexual harassment by her direct supervisor and after reporting the…
EEOC Files Disability and Age Discrimination Lawsuit Against Wendy’s On December 29, 2025, the Equal Employment Opportunities Commission (EEOC) filed a lawsuit in the U.S. District Court for the Southern District of Ohio (“S.D. Ohio”) against Wendy’s International, LLC alleging disability and age discrimination against a Columbus-Ohio based district manager, Michael Salsburg. The complaint alleges Wendy’s violated the Americans with Disabilities Act (ADA) and the Age Discrimination in Employment Act…
This article explores how federal and state labor laws shape employment practices in the United States. From wage protections and worker classification to union rights and leave policies, the legal landscape significantly impacts both employers and employees. Federal Labor and Employment Laws in the US Labor and employment laws in the U.S. continue to shape the quality of life for millions of workers by establishing and enhancing bargaining rights, minimum wages, equal opportunity, and safety in the workplace. The laws are designed to…
In September 2025, the New Jersey Department of Labor & Workforce Development (NJDOL) announced that rideshare mogul Lyft had submitted over $19.4 million to the state’s unemployment, temporary disability, family leave insurance trust funds, and workforce development funds after an audit found that the company had misclassified over 100,000 drivers between 2014 and 2017 as independent contractors rather than employees. By treating these workers as independent contractors, Lyft avoided required state payroll tax and benefit contributions, including unemployment compensation, temporary disability and family leave benefits. Consequently, drivers…
Why the IRS announcement Raises Concerns Over Gig Worker Misclassification The IRS Fact Sheet 2025-08 reflects the Agency’s decision maintaining the Form 1099-k reporting threshold at $20,000 and 200 transactions for 2025. While the decision reduces confusion for many online sellers and hobbyists, it creates a blind spot for many gig workers. Gig worker misclassification as independent contractors rather than employees shift tax burdens, reporting duties, and legal responsibilities on to individuals rather than employers. A higher 1099-K threshold may reduce paperwork for some taxpayers, but it also reduces transparency, allowing employment misclassification…
Misclassification Allegations In a recent enforcement action by the California Department of Justice, the state secured a judgment of over $10 million against Care Specialist HCS Inc. (formerly TLC Home Care Services), and its previous and current owner-operators, for the alleged misclassification of hundreds of in-home care workers as independent contractors in violation of California’s labor laws and Unfair Competition Law. The 2023 lawsuit alleged that the company mislabeled these…
As telehealth companies continue to grow, many physicians and clinicians are classified as 1099 independent contractors—but under federal and state law, they may qualify as W-2 employees. Understanding the difference between these classifications is critical, as it impacts everything from overtime pay and benefits to tax obligations and legal protections. DOL’s Six Economic Reality Factors Many factors can distinguish the status of 1099 and W-2 telehealth providers. Under federal law, treating a W-2 employee as an independent contractor is considered…
[embed]https://youtu.be/Gg9iwJFtK3Q[/embed] What does the new legislation propose, and how does it affect California gig worker misclassification debates under AB5 and Prop 22? California’s Assembly Bill (AB) 1340 and Senate Bill (SB) 371 together are a monumental legislative package that strengthens the labor protections of gig workers. The bills operate within the framework established by Proposition 22, which, passed in 2020, classifies rideshare drivers as independent contractors. This designation precludes them from protections granted to employees, most notably, the right to organize. Supported by both labor unions and rideshare companies, the new legislation aims to grant drivers new protections while largely…
On August 25th, 2025, nine years after the case was filed, Pennsylvania Court of Common Pleas Judge Michael Erdos approved a $13.5 million BAYADA Home Health Care, Inc. wage and hour settlement in a class action brought by hourly-paid home health nurses who alleged unpaid wages and overtime violations between August 3, 2013, and September 10, 2024. Specifically, the home health nurses claimed violations of the Pennsylvania Minimum Wage Act…
PA Philadelphia | 866-540-5505
NY New York City | 866-540-5505
NY New York City | 866-540-5505
NY New York City | 866-540-5505
NY New York City | 866-540-5505
CT Chester | 866-540-5505
PA Philadelphia | 866-540-5505
NY New York City | 866-540-5505
PA Philadelphia | 866-540-5505
CA San Francisco | 866-540-5505
FL Fort Lauderdale | 866-540-5505
NY New York City | 866-540-5505
PA Philadelphia | 866-540-5505
CT Chester | 866-540-5505
NY New York City | 866-540-5505
PA Philadelphia | 866-540-5505
CA Los Angeles | 866-540-5505
CA Los Angeles | 866-540-5505
CT Chester | 866-540-5505
CT Chester | 866-540-5505
FL Fort Lauderdale | 866-540-5505
CT Chester | 866-540-5505
NY New York City | 866-540-5505
PA Philadelphia | 866-540-5505
NY New York City | 866-540-5505
PA Philadelphia | 866-540-5505
CA San Diego | 866-540-5505
PA Philadelphia | 866-540-5505
CT Chester | 866-540-5505
NY New York City | 866-540-5505
NY New York City | 866-540-5505
CA San Diego | 866-540-5505
NY New York City | 866-540-5505
PA Philadelphia | 866-540-5505
PA Philadelphia | 866-540-5505
FL Fort Lauderdale | 866-540-5505
NJ Hoboken | 866-540-5505
NY New York City | 866-540-5505
PA Philadelphia | 866-540-5505
PA Philadelphia | 866-540-5505
PA Philadelphia | 866-540-5505
CA San Francisco | 866-540-5505
CT Chester | 866-540-5505
NY New York City | 866-540-5505
CT Chester | 866-540-5505
PA Philadelphia | 866-540-5505
CA San Diego | 866-540-5505
PA Philadelphia | 866-540-5505
PA Philadelphia | 866-540-5505
PA Philadelphia | 866-540-5505
CA Los Angeles | 310-203-0600