Classifying Workers as Independent Contractors Does Not Violate the NLRA, Board Rules

The National Labor Relations Board (NLRB) has ruled that misclassifying workers as independent contractors does not violate the National Labor Relations Act (NLRA).

NLRB-issues-new-strategic-planThe decision came on Aug.29 when the board reviewed the case, Velox Express, Inc. and Jeannie Edge. In 2017, an administrative law judge ruled that Velox Express had violated the NLRA by deeming its employees contractors, thus removing them from the protections — including unionizing — that the NLRA affords employees.

After hearing briefs about the case, the NLRB found that Velox Express had incorrectly labeled its employees as independent contractors, but added that the company did not commit a separate violation by classifying them wrongly. It also found that Velox Express had violated the NLRA by firing a worker (Jeannie Edge) for “raising group complaints” about the classification.

The ruling, however, does not relieve employers of their obligations under the Fair Labor Standards Act (FLSA), workers’ compensation laws,  taxation issues and unemployment compensation if they misclassify employees as independent contractors.

NOTE: The details in this blog are provided for informational purposes only. All answers are general in nature and do not constitute legal advice. If legal advice or other expert assistance is required, the services of a competent professional should be sought. The author specifically disclaims any and all liability arising directly or indirectly from the reliance on or use of this blog.
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