Supreme Court Declines to Hear Challenge of Illinois Independent Contractor Classification Law

On October 14, 2014, the Supreme Court of the United States refused to consider a challenge to the Illinois Employee Classification Act, which classifies workers in the construction industry as employees unless they can meet the detailed requirements of the statute for independent contractor status. The Supreme Court denied the…..

Supreme Court Clarifies the Scope of the “Changing Clothes” Exception to the FLSA for Union Employers

On January 27, 2014, the Supreme Court of the United States issued its opinion in Sandifer v. United States Steel Corp., No. 12-417, upholding judgment for the employer under section 203(o) of the Fair Labor Standards Act (FLSA) in a donning and doffing case affecting approximately 800  unionized plant workers…..

Second Circuit Rules “Gap Time” Claims Impermissible Under FLSA, Even Where An Employee Worked Overtime

The Second Circuit Court of Appeals recently addressed “gap time” claims brought by a purported class under the Fair Labor Standards Act (FLSA). Lundy, et al. v. Catholic Health Systems of Long Island, Inc., No. 12-1453 (March 1, 2013). Specifically, the court addressed, among other things, whether an employee may…..

Employers Get Misclassification Tax Relief

Voluntary IRS program could carry unintended consequences for benefit plans The Internal Revenue Service (IRS) announced a new voluntary correction program to allow employers to reclassify workers who are improperly classified as independent contractors as employees for employment tax purposes. The Voluntary Classification Settlement Program (VCSP), announced September 21, 2011 in IRS Announcement 2011-64, permits