On November 22, 2016 a federal judge blocked the implementation of the Final Rule by granting a motion for a nationwide preliminary injunction filed by twenty-one states and joined by over fifty business organizations.
Many businesses prefer to classify members of their workforce as independent contractors rather than as employees because it usually seems cheaper and easier for the business to do so. However, as recent cases involving Lyft and Uber demonstrate, the consequences of misclassifying workers as independent contractors when they should have been classified (and paid) as employees can be significant, maybe even catastrophic, to your business.
The Department of Labor has promulgated new regulations that could have a significant impact on whether you choose to – and even whether you are able to – continue to classify certain of your employees as exempt from FLSA requirements come December 1, 2016.
Suzanne practices corporate and transactional law, with a focus on employment law matters including employee benefits, executive compensation, ERISA litigation, and executive compensation program implementation.
On May 11, 2016, President Obama signed the Defend Trade Secrets Act of 2016 (the “DTSA”) into law. The DTSA—which went into effect immediately after being signed—creates a new right for trade secret owners to sue under federal law when their trade secrets are misappropriated. But the DTSA also requires an employer to notify its employees (including contractors and consultants) of immunity for certain permitted disclosures of a trade secret in any contract or agreement with the employee that governs the use of trade secrets or other confidential information.