Want a Class Action? Misclassify Your Employees
Two potentially huge class actions certified this week demonstrate the perils of misclassifying employees.
On Monday, a judge certified a class action against FedEx that could include as many as 20,000 drivers who claim that they were improperly classified as independent contractors.
On Wednesday, an action was certified against Wells Fargo that could grow to as many as 30,000 workers alleging that they were misclassified as exempt from overtime.
These cases are just the most recent examples of the burgeoning class action industry. The biggest targets for such actions are employers who improperly classify employees in an attempt to evade their obligations under the law.
We firmly believe that the very best thing a company can do to avoid large-scale employment law liability is to undertake a thorough review to ensure that all its independent contractors are actually independent contractors and that all employees classified as exempt are actually exempt. Failing to do so could be hazardous to your company’s health.
