Allyn & Fortuna LLPDiana 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…