Independent Contractor Compliance: Why Even the Most Sophisticated Companies Can't Get it Right

Pepper Hamilton LLP Releases White Paper Exploring Ways Companies Can Avoid Multi-Million Dollar Class Actions in the Sharing, On-Demand Economy

Philadelphia, Pennsylvania, UNITED STATES

PHILADELPHIA, May 4, 2015 (GLOBE NEWSWIRE) -- While independent contractors continue to be a cost-effective alternative to full-time employees, many companies are feeling the wrath of IC misclassification – even the most sophisticated companies can't get it right.

To address the risks posed by IC misclassification, Richard Reibstein, Lisa Petkun and Andrew Rudolph – co-heads of Pepper Hamilton's Independent Contractor Compliance Practice Group – have released their 2015 ICC White Paper, an updated version of one of the most viewed legal resources on independent contractors. The new edition includes a more comprehensive view of IC misclassification and how companies can avoid class action lawsuits and regulatory enforcement actions.

The 2015 Independent Contractor Compliance White Paper discusses:

  • The rise in IC misclassification in today's on-demand, sharing economy, leading to lawsuits against many tech start-ups including Uber, Lyft,, TaskRabbit, and InstaCart
  • The difficulty in complying with the "crazy quilt" of state and federal tests for IC status that are tripping up some of the largest and most well-known companies like FedEx, Macy's, Lowe's, Sleepy's, Google, DirecTV, McClatchy Newspapers, and the Buffalo Bills Football Team
  • The industries that the feds and state workforce agencies are targeting for IC misclassification
  • Three alternatives to avoid or minimize IC misclassification in the future, including:
    • Bona fide restructuring and re-documentation through the use of IC Diagnostics
    • Reclassification, either voluntarily or through a government program
    • Redistribution of ICs, using a workforce management or staffing company

These alternatives enhance compliance for virtually all companies that use independent contractors – whether to supplement their workforce or to refer or offer qualified service providers to customers or clients as part of their business model.

About Pepper Hamilton

Pepper Hamilton LLP ( is a multi-practice law firm with more than 500 lawyers nationally. The firm provides corporate, litigation and regulatory legal services to leading businesses, governmental entities, nonprofit organizations and individuals throughout the nation and the world. The firm was founded in 1890.