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Sunday, October 25, 2026

Independent Contractors or Employees? New Court Ruling Focuses on Control - HRMorning

DMV Protection LLC is a security service company that provides security personnel for clients.

Except for the owner, everyone at DMV – from security guards to the director of operations – is classified as an independent contractor (IC). Guards must sign an IC Agreement and an IC Handbook, which are DMV’s only written policy documents.

DMV pays guards $16.50 to $22 an hour, without overtime premiums. The owner set pay rates based on client rates, with no evidence guards negotiated pay. Guards made no upfront investment. Instead, DMV provided guards with branded uniforms, radios, badges, keys, vehicles and gas.

How Much Control Over Independent Contractors Is Too Much?

The company assigned guards to client locations and typically established regular schedules. Guards couldn’t hire their own employees or subcontract shifts without supervisor approval. DMV used an app that required guards to clock in and out at every site, gave guards work instructions and conducted periodic check-ins; it also used GPS tracking and in-person site visits to supervise guards.

Guards were penalized for arriving late, leaving early, not wearing uniforms, smoking and using phones for non-work purposes. Penalties included pay deductions, suspensions and terminations.

In 2025, a guard filed a class action alleging misclassification and unpaid overtime under the Fair Labor Standards Act (FLSA) and state law.

The court found DMV exercised extensive control over guards’ work. That control weighed...



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