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ARTICLE · 04 APRIL 2014

March 2014 Monthly Independent Contractor Compliance And Misclassification Update

Pacer Cartage was ordered by the California Labor Commissioner’s Division of Labor Standards Enforcement (DLSE) to pay $2,214,496.39.

United StatesEmployment and HR

In the Courts

LOGISTICS COMPANY HIT WITH $2.2 MILLION IC MISCLASSIFICATION CITATION.

Pacer Cartage, which was recently acquired by logistics giant XPO, was ordered by the California Labor Commissioner's Division of Labor Standards Enforcement (DLSE) to pay $2,214,496.39 in back pay, attorney's fees, and interest for reportedly having misclassified seven short-haul drivers as independent contractors instead of employees. The order, released to the public on April 2, 2014, found that Pacer Cartage, a drayage company, "knew or should have known" that the drivers were employees rather than independent contractors.

HOME IMPROVEMENT INSTALLERS DENIED CLASS CERTIFICATION.

Massachusetts federal district judge denies class certification to a group of installers suing home improvement retailer, Lowe's Home Centers, under state law and the Fair Labor Standards Act for allegedly misclassifying them as independent contractors. Although the installers had signed similar

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