Independent Contractor Model Is Under Siege and Must Be Defended

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 multiple and punitive damages.

With the IRS, DOL, NLRB and state governments continuing to closely scrutinize the independent contractor model, individual, collective and class action worker misclassification lawsuits will only continue to climb.

In light of the growing litigation in this area, companies must develop effective strategies to not defend against these lawsuits, but to prevent them as best as possible. My firm has been successful in crafting effective settlement strategies to minimize the time and expense of litigation. Further and most importantly, we have been able to guide employers in modifying business operations and establishing valid independent contractor models that will assist them in withstanding heightened scrutiny and minimize the likelihood of litigation.

Our firm provides guidance to employment counsel and to management directly for not only risk management purposes, but also in defending litigation matters and negotiating settlements of litigation alleging employer misclassification of independent contractors. The latest trends in individual, collective and class action worker misclassification lawsuits have changed over the years and the scrutiny being placed on small and large companies is more stringent than ever. We counsel our clients on creating and maintaining the best practices for independent contractor models that will help employers minimize or withstand litigation.

The key issues every employer must consider is:

  • What are the bases for the recent wave of independent contractor individual, collective and class action misclassification lawsuits—and what defenses are available to employers?

  • What litigation and settlement strategies have proven effective for counsel defending worker misclassification lawsuits?

  • How can employers establish, defend and maintain independent contractor models amid the increased government and worker scrutiny in this area?

We are happy to meet with your organization to answer your questions about these important issues directly.