The Epidemic Of Employer Misclassification Of Employees As Independent Contractors Under The Fair Labor Standards Act, And The Courts' Response
Justin M. Swartz, and Mariko Hirose, and contributions by Piper Hoffman, 2009
The Fair Labor Standards Act (FLSA)’s compensation requirements, such as minimum wages and overtime pay, apply only to “employees.” Chao v. Mid-Atl. Installation Servs., Inc., 16 F. App'x 104, 105 (4th Cir. 2001). Employers can get around these requirements and lower their tax bills at the same time by classifying workers as “independent contractors” instead of “employees.” Employers classify as independent contractors many workers who do not meet the legal definition: the Department of Labor estimates that up to 30% of U.S. employers misclassify workers. Courts have found rampant violations across certain industries.
A Practitioner's Overview of the Deficiencies of the Worker Adjustment and Retraining Notification Act Twenty Years Following its Enactment
René S. Roupinian, NELA, The New York Employee Advocate, Volume 14, No. 5, June 2008
An overview from a litigator’s perspective of the main deficiencies in the WARN Act, including hurdles not contemplated by Congress that have made WARN Act litigation difficult and often nearly impossible in ways not envisioned by Congress twenty years ago. Some of these deficiencies have been addressed by the current proposed legislation, namely S. 1792 and H.R. 3920 (which the House approved in October 2007), others have not, but should be considered as critical to making WARN a viable tool for achieving Congress’ purpose of providing advance notice to terminated employees.