On March 31, SBA Administrator Jovita Carranza and Treasury Secretary Steven T. Mnuchin announced that the SBA and Treasury Department have initiated a “robust” mobilization effort of banks and other lending institutions to provide small businesses with $349 billion in much-needed capital pursuant to the Paycheck Protection Program, established by the Coronavirus Aid, Relief, and
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…
We’re excited to announce a new article authored by Jim Baker that was published in the Summer 2019 issue of the Benefits Law Journal.
In this article, Jim covers how the dramatic increase in the number of workers who are classified as independent contractors is changing how employers and workers interact, specifically the implications on…
On July 22, 2019, a three-judge panel for the Ninth Circuit withdrew its holding that Dynamex Operations West, Inc. v. Superior Court—the landmark California Supreme Court decision that makes it harder for companies to rely on independent contractors—applies retroactively. The panel held instead that the question should be decided by the state’s highest court.
Continue Reading Scratch That: The ABC Test Might Not Apply Retroactively
Hiring Entity: When are gig workers employees?
Four Government Agencies & Courts: It depends!
Trying to track the employment status of gig workers will make your head spin. Contractors? Employees? Super heroes?
In the last few weeks, four federal and California state agencies and courts — the US Department of Labor, the National Labor Relations Board, the Ninth Circuit Court of Appeals and the California Labor Commissioner — have all weighed in on the debate. And, the answer is — it depends.
Follow our script below to help make sense of the patchy legal landscape.
In last Thursday’s Vazquez v. Jan-Pro Franchising, the Ninth Circuit made several impactful findings related to the infamous Dynamex decision:
- Aligning with several state court decisions supporting retroactivity, the Ninth Circuit ruled that Dynamex’s ABC test applies retroactively.
- It also applied Dynamex to a multi-level franchise structure, expanding the test beyond the independent contractor context.
- Last, the Court issued guidance to the district court on remand reaffirming the difficulty of “passing” the ABC test.
On December 22, 2017, the Tax Cuts and Jobs Act was signed into law bringing significant changes to US tax law. One provision of the Act may further incentivize individuals to work as independent contractors instead of as traditional employees.
The new provision allows for independent contractors, and for service providers structured as a partnership or other flow-through entities, the potential to deduct up to 20% of their revenue from their taxable income. And while some companies might view the opportunity to re-classify individuals from employees to independent contractors as a “win–win” scenario, it could create substantial legal exposure for employers.
Internal pay audits are rarely enjoyable. Depending on the scope, these audits can be complex and require detailed analysis. However, in the current legal climate, an internal audit can be extremely valuable and greatly reduce, or even eliminate, potential liability for wage and hour claims as well as pay equity claims. As previously reported on this blog, increased scrutiny into pay equity discrimination, changes in EEO-1 reporting requirements, the Department of Labor’s joint employment efforts, and the updated FLSA exemption rules continue to place companies at greater risk of government audits, fines, and lawsuits.
Many employers may have already reviewed and updated their policies in anticipation of the changes to the “white collar” FLSA exemptions, which go into effect on December 1, 2016. But if your company has not yet done so, or to the extent you have not conducted a more comprehensive internal audit, your company should strongly consider doing so as soon as possible for several reasons.…
Continue Reading Don’t Wait! Now Is the Time to Conduct an Internal Wage & Hour Audit
Think you know whether your workers should be classified as independent contractors? Take a shot at our short quiz to test your knowledge on employee misclassification!…
Continue Reading Employee or Independent Contractor? Take the True/False Quiz.
So you’ve determined the employees who will be included in the layoff and determined any WARN obligations . . . now what? While its often brushed aside as an administrative exercise, employee final pay is a significant action that is full of traps for the unwary. Governed by the Texas Payday Law, failure to properly provide final pay can subject a company to civil liability of up to $1,000 per violation, and, if intent is shown, criminal liability. Fortunately, the Texas Payday Law provides guidance on how to handle a number of common questions regarding final paychecks.…
Continue Reading Issuing Final Pay – RIF Series