Just the other week, in Jones v. Royal Admin. Servs., the Ninth Circuit reaffirmed the federal common law standard for distinguishing agents from independent contractors and upheld the independent contractor status of telemarketers providing direct sales services for a company, Royal Administration Services, Inc. (“Royal”).
At issue were telemarketers employed by All American Auto Protection, Inc. (“AAAP”), one of about twenty marketing vendors used by Royal to sell vehicle service contracts. Several recipients of these telemarketing calls filed suit, first against AAAP and then against Royal, alleging violations of the Telephone Consumer Protection Act (“TCPA”). The telemarketing call recipients alleged that Royal was vicariously liable because the AAAP telemarketers were Royal’s agents. Royal filed for summary judgment, asserting that the AAAP telemarketers were not its agents, but rather independent contractors. The district court granted summary judgment for Royal. READ MORE
The Department of Labor (“DOL”) continues its regulatory dash to fulfill the President’s domestic agenda. The agency issued proposed rules, that seek to make President Obama’s Executive Order 13706, Establishing Paid Sick Leave for Federal Contractors signed on September 7, 2015, into a reality. The DOL solicits any comments on the proposed rules on or before March 28, 2016. Once effective, employees of certain federal contractors would be entitled to paid leave akin to the leave now in place in 4 states, the District of Columbia, and 27 other localities that are entitled to paid sick leave.
The California Supreme Court in Ayala v. Antelope Valley Newspapers, Inc. recently affirmed and remanded the reversal of a denial of class certification in an independent contractor misclassification case, emphasizing the standard terms of the contractual agreements between the parties. The plaintiffs were newspaper carriers for the defendant newspaper publisher who were contracted pursuant to two preprinted standard form contracts. Based on the theory that they were misclassified as independent contractors, plaintiffs alleged overtime, meal and rest break violations, and sought reimbursement for expenses and penalties. READ MORE