Companies can be more confident that liability under the National Labor Relations Act will not flow from the misclassification of its workforce alone, thanks to a recent NLRB decision. Baker McKenzie attorneys call this welcome news for companies, but say they still must look at workforce relationships and properly classify independent contractors.
In a much anticipated decision, the National Labor Relations Board recently ruled that misclassifying employees as independent contractors does not violate the National Labor Relations Act. The Velox Express Inc. and Jeannie Edge decision brings clarity to companies that rely on independent contractor relationships to grow and drive their businesses.
Click here to review the key takeaways for employers and the board’s rationale behind its decision.
This Article was originally posted in Bloomberg.