The National Labor Relations Board issued a decision on June 13 that makes it more difficult for employers to demonstrate that their workers are independent contractors.
By doing so, the board overruled its 2019 SuperShuttle decision which had affirmed the importance of “entrepreneurial opportunity” in determining whether employees should be considered independent contractors. The SuperShuttle decision said that the most important factors to consider in determining a worker’s status are whether a worker operates an independent business and whether there is an opportunity for profit or loss. Workers with an independent contractor status are not considered employees and are thus unable to unionize.
The NLRB stated in its decision that the SuperShuttle decision ran counter to U.S. Supreme Court precedent which involves analyzing common law factors. In overturning the 2019 decision, the NLRB has restored its previous standard set forth in the 2014 FedEx Home Delivery case, which had “entrepreneurial opportunity” as only one factor among several to be considered in determining independent contractor status.
The FedEx standard, according to the board’s majority, is a way to look at the “full constellation of considerations that the board has addressed under the rubric of entrepreneurialism.” Put more simply, the FedEx standard looks at the common law factors which are aligned with Supreme Court precedent and still allows for workers’ entrepreneurship to be an assessment factor.
This decision will have a great impact on both workers and employers. Business groups have previously found the FedEx standard to be both confusing and unpredictable, which without further guidance from the NLRB will again become the reality for employers. Alternatively, workers will now have an easier time organizing, which when combined with the recent decision by the legislature to repeal Michigan’s Right-to-Work means that workers and union rights are stronger now than at any point in the past decade.
Employers should make certain to consult legal counsel in order to understand their changing responsibilities under the increasingly pro-union climate in Michigan.
Add a comment
Topics
- Employment Liability
- Employment Discrimination
- Employment Agreement
- Labor Law
- At Will Employment
- Human Resources
- Equal Employment Opportunity Commission (EEOC)
- Department of Labor (DOL)
- Wage & Hour
- Alternative Dispute Resolution (ADR)
- Arbitration
- Fair Labor Standards Act (FLSA)
- Minimum Wage
- Family Medical Leave Act (FMLA)
- National Labor Relations Act
- COVID-19
- Americans With Disabilities Act (ADA)
- National Labor Relations Board
- Coronavirus
- Noncompete Agreements
- National Labor Relations Board (NLRB)
- Civil Rights
- Contract Employees
- Regulatory Law
- Whistleblower Protection Act
- Title VII
- Earned Sick Time
- OSHA Issues
- Paid Medical Leave Act (PMLA)
- Tax Law
- Retaliation
- Sick Leave
- Workplace Harassment
- Transgender Issues
- Unemployment Benefits
- Contracts
- Federal Trade Commission
- Civil Litigation
- Settlements
- Business Risk Management
- Hostile Work Environment
- ERISA
- Workers' Compensation
- Accommodations
- First Amendment
- Public Education
- Cannabis
- LGBTQ
- Class Actions
- Department of Justice
- Medicare Issues
- Sexual Harassment
- Garnishments
- Social Media
- Retail Liability
- RICO
- Emergency Information
- Uniformed Services Employment and Reemployment Rights Act (USERRA)
- Department of Education (DOE)
- Title IX
- Medical Marijuana
- Right to Work
- Health Insurance Portability and Accountability Act (HIPAA)
- Diversity
- Union Organizing & Relations
Recent Updates
- Federal Court Rules State Discrimination Claims Subject to Mandatory Arbitration
- Are Boilerplate Terms in Employment Applications Enforceable?
- Is Your Business Ready for Pay Transparency Laws?
- Supreme Court Resolves Circuit Split in Reverse Discrimination Cases
- Michigan Legislature Avoids Chaos by Amending Earned Sick Time Act Just Prior to Deadline
- Implementing the Pregnant Workers Fairness Act: Key Insights for Employers
- Federal Court Throws out DOL’s Attempt to Rewrite White Collar Overtime Rules
- Civil Rights Litigation Filed by Christian Employers Gets New Life Following Federal Appellate Court Ruling
- Michigan Supreme Court Clarifies Minimum Wage Decision
- Judge Strikes Down Federal Ban on Non-compete Agreements




