Issues related to whether individuals are independent contractors or employees receive significant attention by employers and governmental entities because of the critical impact of misclassification. The U.S. Department of Labor’s (DOL) recently published proposed rule restricting when individuals can be considered independent contractors is an example of this scrutiny. Further, this attention is also reflected by more states viewing misclassification as criminal conduct—by classifying such conduct as wage theft, rather than as a civil matter. A recent decision by a Texas federal court following a bench trial involving misclassification issues helps provide guidance for employers seeking to make appropriate independent contractor classifications.
In Mason v. Helping Our Seniors, LLC, the key issue evaluated by the court concerned whether the defendant, Helping Our Seniors, LLC, was an “employer” under Title VII of the Civil Rights Act of 1964. The company utilized approximately seventy individuals to provide in-home companionship, cleaning, and nonmedical care services to its clients. The company claimed that it did not meet the definition of “employer” under Title VII because it had fewer than fifteen employees and all the in-home caregivers were independent contractors. The plaintiffs, Melanie and Dolores Mason, argued that the in-home caregivers were employees to be counted to determine Title VII coverage.
After a bench trial, the court observed...
As world leaders gathered in New York for the High-Level Week of the 81st UN General Assembly, a “breaking news” post began circulating in Sri Lanka claiming that the country had been removed from ...