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1099 Risk Blog
Lawsuits
January, 11 2010
It must have been a happy holiday season for Lynn Rossman Faris, Partner at Leonard Carder and viritually a rock star in the world of class action independent contractor misclassification lawsuits, after the news broke in mid-December. A federal judge in California approved a mediated $12.8 million settlement for a class of 660 UPS drivers denied benefits and overtime due to misclassification as independent contractors. If you follow the FedEx independent contractor misclassification case, you may recognize Faris' name . . .
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August, 31 2009
It’s easy to get bogged down in the details of 1099 reclassification risk. Sometimes, the minutiae of contractor classification fade into the background, and the essence boils down to a far simpler directive: don’t hate. To explain what I mean, for today’s installment of the 1099 Risk Blog I’d like to highlight the recent Baby Trend misclassification and wrongful termination case. A California superior court entered an $8.4 million jury verdict against Baby Trend Inc. and the owner, Denny Tsai, for misclassifying and wrongfully terminating Robert Gardner . . .
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August, 11 2009
In a case that brings vivid new meaning to the “three areas of control,” the Boston Globe reported today that a judge has ruled in favor of about 70 exotic dancers who were misclassified as independent contractors by Chelsea establishment King Arthur’s Lounge. The class action case will now proceed to trial on damages, estimated to come to thousands of dollars per stripper. With such a misclassification finding, the club may now also be exposed to the full monty of independent contractor reclassification risks, including wage and hour law, immigration law, discrimination laws, payroll tax penalties, and more.
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March, 18 2009
Healthcare workers that were classified as independent contractors by the Delta-T Group filed a lawsuit on February 17th claiming they were misclassified, according to a news item in MSNBC today. If the court agrees with their position -- that they should have been classified as employees -- then they have been unjustly denied overtime compensation, unemployment, benefits, payroll taxes, and worker's comp. The company could be forced to
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September, 9 2008
In our news of the weird for today, as reported by the Connecticut Law Tribune, attorneys for three wrestlers have filed a federal "legal smackdown" against the WWE for misclassifying the performers in independent contractor status, and denying them employee benefits. While seemingly absurd, the lawsuit is yet one more example of increased awareness around the issue of employee misclassification, and raises serious questions of Federal tax evasion. Beyond all that, as a writer for the Advocate quipped, "When you get hit in the face with metal chairs for a living, it's a good idea to have a dental plan."
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Recent NewsMBO Partners Appoints Jay Lash VP of Market Strategies
March 1, 2010 -- MBO Partners appointed Jay Lash as VP of Market Strategies. Lash, formerly with Allegis Group Services, brings over 25 years of experience in contingent workforce management, VMS, MSP, and human capital solutions, and will be focused on building strategic partnerships to make it easier for independent contractors and companies to work together in a business climate of increasingly stringent compliance.
Read the press release >
Visit the newsroom > New ResearchContingent Labor Strategies for 2010 and Beyond
This research from Aberdeen benchmarks performance of 200 companies with respect to contingent workforce management. The study found the risks of contingent labor, particularly independent contractors, must be mitigated, while delivering performance across areas like time, cost, and compliance with labor policies and employment law.
See all white papers > Download White PaperE-Verify Requirements for Contractors
Jointly produced by Michael Best & Friedrich LLP and MBO Partners, this paper offers a groundbreaking overview of the legal ramifications and risks for federal contractors required to use E-Verify, with particular attention to how the new regulations apply to independent consultants, independent contractors, small vendors, and other sub-contractors. Get the paper here!
See all white papers > Talk With Our ExpertsCall 1-800-220-0469, or complete this form. Our experts will be in touch promptly.
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