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Tag: Independent Contractor

Department of Labor Clarifies Test for Classifying Employees and Independent Contractors under FLSA

Thursday, 07 January 2021 by Merritt Green
The line between employee and independent contractor has historically been unclear. However, on January 6, the Department of Labor (DOL) provided clarification on the test for employee versus independent contractor under the Fair Labor Standards Act (FLSA). The “final rule” streamlines and clarifies the test and should “reduce worker misclassification, reduce litigation, increase efficiency, and
Department of LaborDOLEmployeeFLSAIndependent ContractorMarch 2021
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  • Published in Employment, Labor & Employment, News
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Fairfax Circuit Court Finds For Employees, Holding Non-Compete Overly Broad And Unenforceable

Monday, 24 February 2020 by Merritt Green
Defendant loses court case
In a recent case, the Fairfax Circuit Court in Virginia found in favor of the defendant employees, holding that a previous employer’s non-competition and non-solicitation provisions were unenforceable. There, the non-compete and non-solicitation clauses were not limited in scope, but instead prohibited conduct “wholly unrelated” to the employer’s legitimate business needs. Since the court found
broad non-compete agreementIndependent ContractorMetis v. AllisonPublic Interestrestrictive covenants
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  • Published in Business, Employment, Labor & Employment, Non-Compete, Non-Solicitation
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Harsher Penalties Recommended for Employers Who Misclassify Employees as Independent Contractors

Wednesday, 05 February 2020 by Merritt Green
The distinction between a 1099 independent contractor and a W-2 employee is an important one, as this classification affects federal income tax, social security and Medicare taxes, as well as impacts eligibility for Medicare benefits. It is critical that business owners correctly determine whether individuals are employees or independent contractors. If a business misclassifies an
EmployeesEmployersHarsher PenaltiesIndependent ContractorMisclassify
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  • Published in Business, Employment, News
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Company and Company Owner Liable for FLSA Violations – Workers Not Independent Contractors

Wednesday, 04 September 2019 by Merritt Green
In a recent case, the Court found workers were improperly classified as independent contractors and entitled to back pay for missing overtime compensation. The court determined that the workers were dependent on the business rather than in business for themselves and, thus, were employees. The Court also found that the owner of the employer business
EmployeesEmploymentIndependent ContractorNews
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  • Published in Employment, News
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