- Written by Carl Larson
FedEx will be paying a total of $467 million to settle claims in a California lawsuit and a multi-district suit in Indiana, that its delivery drivers were improperly classified as independent contractors (“IC”). ICs generally have less legal protections, rights, and benefits as compared to those workers classified as employees. If a court finds that workers were misclassified, employers are often on the hook for a great deal of back pay of overtime wages among other damages and penalties.
- Written by Glen A. Williams
A breaking news article was posted this afternoon on Law360.com, providing welcome news, and at least temporary relief, to employers and their labor attorneys regarding the Department of Labor’s new “persuader rule.” Following is the pertinent text of the article:
Law360, New York (June 27, 2016, 3:15 PM ET) -- A Texas federal judge on Monday entered a nationwide injunction barring the U.S. Department of Labor from enforcing its so-called “persuader” rule, saying it threatens employers’ rights to secure legal advice about union organization.
U.S. District Judge Sam Cummings found the DOL likely exceeded its authority in passing the rule, which requires labor relations consultants, including attorneys, to file disclosure reports specifying the nature of “persuader activities” undertaken with employers. The rule interprets the Labor Management Reporting and Disclosure Act of 1959, which regulates labor unions' internal affairs and their officials' relationships with employers.