Allyn & Fortuna LLPPaula Lopez, February 22, 2024 After vetoing a prior version of bill intended to protect freelancers in New York, on November 22, 2023, Governor Hochul signed into law Senate Bill 5026/Assembly Bill 6040 known as the Freelance Isn’t Free Act (the “Act”). The Act takes effect on May 20, 2024. The Act mirrors New York City’s 2017 Freelance Isn’t Free Act (N.Y.C. Administrative Code §§ 20-927 et seq.), which was the first law passed in the country for the protection of freelance workers. The Act aims to protect…
By: Megan J. Muoio, May 26, 2016 On May 18, 2016, President Barack Obama announced that the Department of Labor will be finalizing a new rule expanding the payment of overtime wages to a larger class of workers who are not currently eligible for overtime pay under federal law. The aim of the rule change, according to the Obama Administration, is the expansion of overtime protections and the boosting of wages for middle class workers. However, the rule change may have different results. Currently, hourly workers are entitled…
By: Megan J. Muoio, October 19, 2015 On September 19, 2015, three trade groups representing the home care industry filed an emergency application with the Supreme Court, seeking a stay of rules implemented by the Department of Labor (DOL). Those rules require home care workers who are employees of a business or outside provider to be paid minimum wages and overtime pay. Those employees, as well as home care providers hired directly by the person being served or someone on their behalf, had long been exempt from minimum…
Diana Uhimov, July 31, 2015 The Second Circuit made two business-friendly rulings on July 2, 2015 in the closely watched proposed class action cases involving interns that claimed they should have been classified as employees. The Court of Appeals struck down a trial court decision that determined two unpaid interns were employees covered by the Fair Labor Standards Act and New York Labor Law in the wage case, Glatt et al. v. Fox Searchlight Pictures Inc. It also upheld a ruling that denied certification in another unpaid intern case against the Hearst Corp. The…
Diana Uhimov, April 17, 2014. Employee misclassification occurs when employers treat workers who should be considered employees as independent contractors or simply do not report them and pay them “off the books”. The consequences for misclassification may include civil penalties, liability for employment taxes, class action lawsuits for unpaid wages, and even criminal prosecution. Although engaging an independent contractor may appear to streamline the hiring process for companies upfront, it is critical to ensure that workers are properly classified to prevent audits, investigations and potential lawsuits. The crackdown…