On June 12, 2023, The Third Circuit Court of Appeals upheld the 2022 decision of the United States District Court for the District of New Jersey to certify a class of drivers in a wage and hour suit against Sleepy’s LLC, rejecting Sleepy’s argument that drivers’ misclassification claims require individualized inquiry to determine whether each class member was an employee or an independent contractor.
On March 17, 2023, a panel of the Ninth Circuit Court of Appeals delivered the latest in a series of decisions on California Assembly Bill 5 (“A.B. 5”), ruling that the United States District Court for the Central District of California had erred in dismissing equal protection claims filed by Uber Technologies, Inc. and Postmates, Inc. against the State of California and the California Attorney General.
On January 5, 2023, the Federal Trade Commission unveiled a Notice of Proposed Rulemaking that would ban virtually all employment-related non-compete agreements on the ground that such agreements are an “unfair method of competition,” thereby violating Section 5 of the FTC Act.
On November 4, 2022, a three-judge panel of the United States Court of Appeals for the Ninth Circuit held that for the purposes of the Fair Labor Stands Act, Los Angeles County qualifies as a joint employer of In-Home Supportive Services providers.
Plaintiffs allege that the company violated and will further violate the federal Worker Adjustment and Retraining Notification Act, as well as the California WARN Act, both of which offer protection to workers, their families, and communities by requiring employers to provide notice 60 days in advance of covered plant closings and mass layoffs.
On October 31, 2022, United States District Judge Mark Kearney of the Eastern District of Pennsylvania approved a $12.5 million settlement of class action claims alleging that Universal Health Services, Inc. mismanaged its defined contribution retirement plan.
On August 3, 2022, the United States Court of Appeals for the Seventh Circuit reversed a Wisconsin federal court’s dismissal of a truck driver’s misclassification claims against hauling company Schneider National Inc. The Seventh Circuit found that driver Eric Brant plausibly alleged a viable claim under the Fair Labor Standards Act (“FLSA”), a federal law that protects workers from unfair employment practices by establishing requirements for minimum wage, overtime pay, recordkeeping, and child labor.
On November 10, 2022, the Ninth Circuit denied the request of Jan-Pro Franchising International Inc. to review the United States District Court for the Northern District of California’s August 2, 2022 order granting a group of janitors class action certification in a lawsuit alleging Jan-Pro misclassified its janitors as independent contractors.
On October 28th, 2022, the Pennsylvania Department of Labor & Industry’s Joint Task Force on Misclassification of Employees held its tenth meeting of the year. The Joint Task Force was created when Pennsylvania Governor Tom Wolf signed Act 85 into law in October 2020, which called for the creation of a Joint Task Force to be composed of seven members (or their designees) and chaired by the Secretary of Labor & Industry.
On October 11, 2022, the United States Court of Appeals for the Ninth Circuit affirmed the Central District of California’s denial of a motion for a preliminary injunction to restrain the California Attorney General from applying California’s “ABC test,” as codified in California’s Assembly Bill 5, to political canvassers.
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