New Case Provides Lessons That May Help Companies Avoid Pitfalls When Structuring Independent Contractor Relationships

The district court's opinion denying cross-motions for summary judgment in Bobbitt v. Broadband Interactive, Inc., No. 8:11-cv-2855 (M.D. Fla. Oct. 21, 2013) illustrates how not to structure an independent contractor relationship and how not to lay the groundwork to defend that relationship in the event of litigation.  The case also serves as a warning that even well-conceived independent contractor relationships may be open to question by a court that is inclined to distrust them.

Background

Broadband Interactive, Inc. (BBI) collected equipment and money when customers discontinued their relationships with a telecommunication company.  During the relevant period, BBI used persons known as "CD Techs" to perform that function and treated them as independent contractors.  A conditionally certified collective of CD Techs sued BBI for minimum wage and overtime violations under the Fair Labor Standards Act (FLSA) and state law, alleging that they were, under the