Recently, the U.S. Court of Appeals for the Ninth Circuit published a decision regarding the misidentification of employees as independent contractors. Such a decision by a court could have serious consequences for Humboldt County employers. In short, having your employees acknowledge that they’re independent contractors doesn’t make it so.
In Narayan, et al. v. EGL, INC., et al., No. 07-16487, the employer, “a global transportation, supply chain management and information services company[,]” was a Texas company with driving operations in California. Three of the employer’s California drivers signed agreements for “Leased Equipment and Independent Contractor Services,” which provided that the parties’ intentions were to enter into an independent contractor relationship. Subsequently, the California drivers filed a lawsuit seeking unpaid overtime, expense reimbursement, meal compensation, and reimbursement for unlawful wage deductions—all owed to employees under California law.
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