Many employers in Maine and across the country engage in the practice of misclassifying employees as independent contractors. Misclassification is sometimes called “1099’ing” because of the 1099 tax form independent contractors receive instead of a W-2 form. While misclassification is illegal, it can save employers as much as 30% in…
On September 16, 2011, federal judge D. Brock Hornby granted a motion for conditional certification of a collective action against FedEx Ground Package System, Inc. (Fed Ex) for violations of the Fair Labor Standards Act (FLSA). A group of Fed Ex drivers brought this case against Fed Ex because they…
Earlier this month, the Maine Senate Labor Committee voted to exempt DeCoster Egg Farms from Maine laws that require employers to pay employees a minimum wage, time-and-a-half for overtime, and allow them to form a union. Some of the Senators that voted to exempt DeCoster Egg Farms are reportedly having…
Rep. David Burns, R-Whiting, has reportedly sponsored a bill that would allow employers to pay teenagers $2.25 less per hour than they have to pay workers who are 20 years old and older. The bill would reduce the minimum wage for teenagers from $7.50 per hour to $5.25 per hour.…
Under current Maine law, with some exceptions, employers may not work minors aged 16-18 more than 20 hours per week while school is in session. The Maine legislature is considering a bill that would allow employers to work minors aged 16-18 32 hours per week while school is in session.…
A group of people who worked as FedEx drivers have sued FedEx because they claim FedEx misclassified them as independent contractors. They argue that FedEx should have classified them as employees instead. By treating the drivers as independent contractors, FedEx saved money on overtime pay, unemployment taxes, payroll taxes, and…
On October 13, 2010, the U.S. Supreme Court heard oral argument in Kasten v. St. Gobain Performance Plastics Corp. In Kasten, the Seventh Circuit Court of Appeals, in Chicago, held that St. Gobain did not violate the law when it retaliated against Mr. Kasten because he complained about St. Gobain’s…
On September 16, 2010, Judge Singal of the U.S. District Court for the District of Maine ruled that a group of former Wood Structures employees may continue to pursue their WARN Act claims against Wood Structures, Roark Capital Group, and some of its affiliated companies. The WARN Act requires certain…
The Obama administration is considering a policy called the “High Road Contracting Policy.” This policy would give employers that treat their employees better than the law requires an advantage when they compete for federal contracts. It is reported that this policy would advantage contractors that provide hourly workers with a…
Many Mainers take for granted that their employers pay them at least minimum wage or time-and-a-half for overtime. However, for low-wage workers in particular, that is something no one should take for granted. In a recent study of low-wage workers around the U.S., the authors of the study found that…