Aug. 2, 2023 – In what may be its largest misclassification lawsuit in its history, the U.S. Department of Labor announced a lawsuit in late June 2023 against a Florida national customer support service provider, Arise Virtual Solutions, alleged to have denied minimum wages and overtime pay to more than 22,000 workers.
In a news release, the department said that Arise Virtual Solutions violated the Fair Labor Standards Act after misclassifying workers as independent contractors, and that it:
often recruited workers with promises they would “be their own bosses” and that they could generate income by providing customer support services to Fortune 500 clients. In fact, investigators determined customer support workers had no real autonomy, were subject to the company’s stringent work scheduling policy, and had to buy their equipment before providing Arise’s clients with service and generating income.
“Misclassification is a serious concern that harms many U.S. workers who are denied their full rights, protections and benefits under federal law,” said Solicitor of Labor Seema Nanda in the release.
As this lawsuit demonstrates, misclassification exposes employers to fines, interest, and other penalties.
Yet, the standard is always evolving: in June 2023, the National Labor Relations Board (NLRB) issued a new standard for classifying independent contractors.
With employers using independent contractors more and more, lawyers should know how help their clients distinguish between employees and independent contractors to properly calculate wages, benefits, and taxes.
Gain updated guidance on the NLRB’s latest standards with Evolving Independent Contractor Standards for Employers and Contracting Agencies, a 1.0 CLE session from State Bar of Wisconsin PINNACLE®.
In this CLE session, you’ll gain a better understanding of proper classification of independent contractors and learn:
how the standard for classifying independent contractors has shifted over time;
how misclassification of employees leads to problems for workers and employers;
what factors the NLRB will consider in an independent contractor analysis; and
how to formalize the relationship between employers and independent contractors.
This CLE webcast will help you give your clients the best advice on classifying workers and reduce their legal exposure. Available live from noon to 1 p.m. Aug. 8, 2023, this CLE is also available via webcast replays on dates in August, September, and October 2023.
Find out more on WisBar’s Marketplace.