Employee Misclassification Does Not Violate Federal Labor Law
Reversing the trend of findings by administrative law judges in the National Labor Relations Board, the Board itself ruled yesterday that misclassifying an employee as an independent contractor alone does not violate the National Labor Relations Act (NLRA). A former employee of Velox Express, Inc., a medical courier service, claimed she was discharged in violation of her Section 7 rights under the NLRA, which protects all non-supervisory employees from adverse action when they engage in concerted activity for their mutual aid or protection in employment. In this instance, worker Jeannie Edge claimed that she was discharged after she complained that she and other workers were misclassified as independent contractors rather than employees. The Board in a 3-1 decision said Velox Express Inc. did not violate the NLRA just by telling its drivers that they were independent contractors, because it was merely expressing a legal opinion and not threatening or coercing them. "An...