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Independent Contractor Misclassification Litigation: Strategies for Defending, Settling, and Minimizing Claims

Recording of a 90-minute CLE video webinar with Q&A

This program is included with the Strafford CLE Pass. Click for more information.
This program is included with the Strafford All-Access Pass. Click for more information.

Conducted on Wednesday, April 10, 2024

Recorded event now available

or call 1-800-926-7926

This CLE course will guide employment counsel in defending and negotiating settlements of independent contractor misclassification claims. The panel will discuss the latest trends in individual, collective, and class action worker misclassification lawsuits and best practices to help businesses minimize risk and withstand litigation.

Description

In recent years independent contractor misclassification lawsuits have surged against companies of all sizes and industries. The laws governing whether a worker should be classified as an employee or independent contractor are riddled with grey areas, potentially exposing employers to costly litigation, including liquidated damages.

With the DOL, NLRB, IRS, and state regulatory bodies continuing to closely scrutinize the independent contractor model individual, collective, and class action misclassification lawsuits will only continue to climb. Indeed, the DOL's new FLSA independent contractor rule is reflective of increased attention to, and hostility towards, independent contractor arrangements.

In light of the growing litigation in this area, employment counsel must develop effective strategies to defend against these lawsuits, minimize potential exposure, and develop cost-effective resolution strategies. Further, employment counsel must guide employers in establishing, modifying, and critically evaluating independent contractor models and outside staffing arrangements in a way that mitigates litigation risk against a constantly shifting legal backdrop.

Listen as our panel of employment law attorneys reviews current litigation trends in independent contractor misclassification cases, provides effective strategies for defending claims and reaching settlements, and explains best practices for establishing and maintaining independent contractor models.

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Outline

  1. Independent contractor misclassification litigation trends
    1. Notable judgments and settlements
    2. Recent case law
    3. Common recoveries by plaintiffs: overtime pay; loss of retirement contributions, insurance, or stock options; punitive damages; attorney fees
  2. Litigation and settlement strategies
    1. Individual, collective, or class action?
    2. Class certification strategies
    3. Multidistrict litigation considerations
    4. Attorney fee awards
  3. Best practices to limit liability and minimize future claims
    1. Audit contractor and employee job descriptions, job duties, and functions
    2. Reclassify contractors as employees going forward?
    3. Restructure contractor relationships to reduce or eliminate employer control
    4. Compensate misclassified employees for past liability?

Benefits

The panel will review these and other key issues:

  • What are the bases for independent contractor individual, collective, and class action misclassification lawsuits? And what is the likely impact of recent rulemaking on independent contractor status under the FLSA?
  • What strategies have proven effective for counsel defending against worker misclassification lawsuits, both from merits and settlement perspectives?
  • What should businesses be doing to minimize risk, in light of the evolving regulatory and enforcement landscape on independent contractor issues?

Faculty

Domanick, Timothy
Timothy J. Domanick

Principal
Jackson Lewis

Mr. Domanick practices exclusively in employment law and has been involved in proceedings before federal and state...  |  Read More

Langhammer, C. Edward
C. Edward Langhammer, Jr.

Member
Cozen O'Connor

Mr. Langhammer has over 35 years’ experience representing clients in all aspects of employment law and related...  |  Read More

McKinley, Andrew
Andrew M. McKinley

Partner
Seyfarth Shaw

Mr. McKinley advises corporate clients and individuals in all aspects of complex employment litigation. His practice...  |  Read More

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