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Category Archives: Misclassification

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Third Circuit Upholds Class Certification In Sleepy’s Drivers Wage Suit

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 (“Defendant” or “Sleepy’s” or the “Company”), rejecting Sleepy’s argument that drivers’ misclassification claims require individualized inquiry to determine whether each class member was an employee or an independent contractor. The Third…

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Ninth Circuit Victory for California Workers Against Uber and Postmates

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. (together, “Plaintiffs”) against the State of California and the California Attorney General (together, “Defendants”).…

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Rover Workers Score $18 Million Deal Over Misclassification Claims

On February 8, 2023, A Place for Rover, Inc. (“Rover” or the “Company”) agreed to pay $18 million to resolve allegations that the Company unlawfully misclassified its hourly workers as independent contractors in order to skirt certain minimum wage and benefit laws. Rover is an app-based platform where users can connect with and book dog sitters or walkers. The Rover app includes dog boarding, dog walking, house sitting and doggy…

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Seventh Circuit Reverses Motion to Dismiss Truck Driver’s Misclassification Claims

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. (“Schneider” or “the Company”). The Seventh Circuit found that driver Eric Brant (“Plaintiff”) 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…

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Ninth Circuit Denies Petition to Review Class Certification Order in Misclassification Suit

On November 10, 2022, the Ninth Circuit denied the request of Jan-Pro Franchising International Inc. (“Jan-Pro”) 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. The action began in 2008 when a group of janitors sued Jan-Pro in Massachusetts federal court. After the…

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Pennsylvania Department of Labor & Industry’s Joint Task Force on Misclassification of Employees Concludes Tenth Meeting

On October 28th, 2022, the Pennsylvania Department of Labor & Industry’s Joint Task Force on Misclassification of Employees (“Joint Task Force”) 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…

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9th Circuit Denies Motion to Preliminarily Enjoin Codification of the ABC Test

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 (“AB 5”), to political canvassers. Under precedent established in Dynamex Operations West, Inc. v. Superior Court, 4 Cal. 5th 903 (2018) to prove workers…

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DOL Issues Notice of Proposed Independent Contractor Rule

On October 13, 2022, the Wage and Hour Division of the U.S. Department of Labor ("DOL") published a Notice of Proposed Rulemaking regarding a new standard for determining whether a worker is an employee or an independent contractor under the Fair Labor Standards Act. The proposed rule, entitled “Employee or Independent Contractor Classification Under the Fair Labor Standards Act,” would create a six-factor framework for classifying workers as employees or…

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Burlington Coat Factory Pays Misclassified Employees $11M in Overtime Wages  

On September 21, 2022, Burlington Coat Factory (“Burlington” or the “Company”) agreed to pay $11 million to settle a class action lawsuit involving claims that the Company misclassified over 1,700 Assistant Store Managers (“ASMs”) and failed to pay overtime wages. The settlement comes after the Company settled two related actions in 2020 for nearly $20 million. In February of 2022, ASM Kim Payton-Fernandez filed a complaint alleging that Defendant violated…

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Pennsylvania Department of Labor & Industry’s Joint Task Force on Misclassification of Employees Concludes Ninth Meeting

On September 23, 2022, the Pennsylvania Department of Labor & Industry’s Joint Task Force on Misclassification of Employees (“Joint Task Force”) held its ninth meeting of the year. The Joint Task Force, comprised of seven bipartisan members and their designees, was created in October 2020 as a result of Act 85 (House Bill 716) to evaluate the status of worker misclassification in Pennsylvania and develop recommendations to present to the…

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