Takeaway: Employee classification and exemptions are some of the most complex and litigious issues that employers face. They arise in many situations under federal and state laws, such as determining whether someone qualifies as an independent contractor, is exempt from overtime or is exempt from an arbitration agreement. Employers can expect the courts to continue to define and refine these areas as employees' attorneys test exactly where the lines are drawn. Employers should work with knowledgeable HR professionals and qualified employment law attorneys when facing these issues.
Finding that a group of couriers for an online delivery service did not fall within the interstate commerce exemption from the Federal Arbitration Act (FAA), the 1st U.S. Circuit Court of Appeals upheld a federal district court's ruling that compelled arbitration of the couriers' dispute. The appeal was the latest attempt by the couriers to avoid arbitration of their claim that the employer misclassified them as independent contractors instead of employees.
The employer operates an online and mobile platform that enables customers to order takeout meals from local restaurants and other goods from local grocery stores. When an order is placed, the employer arranges through its platform for a courier to deliver the order. Of note for purposes of this case, almost all orders (99.66 percent) are delivered within the state where they were placed, and the average distance travelled by a courier during...
US President Donald Trump can shock people. And he did just that eleven minutes into his 40-minute address at the United Nations General Assembly (UNGA) on Tuesday (September 22). “Will a deal be ...