1. The Eleventh Circuit ruling in Romera v. Razzle Dazzle Barbershop, Inc. affirmed that a salon in Miami correctly classified certain barbers as independent contractors.
2. The outcome of the case was based on unique evidence and legal strategies used by the attorneys representing both sides, and does not mean that all barbers can be properly classified as independent contractors.
3. The case serves as a reminder of the test for determining whether a worker can be classified as an independent contractor, as well as best practices for employers and what individuals should do if classified as independent contractors. – The legal test for employee classification in the Eleventh Circuit is the “economic realities” test.
– Factors guiding the economic realities test include the degree of control over the work, opportunity for profit or loss, investment in equipment, required skill, working relationship duration, and the integral nature of the service to the business.
– The DOL Fact Sheet Number 13 provides additional guidance on the economic realities test.
– In the Romera case, former barbershop employees sued for unpaid overtime, alleging misclassification as independent contractors. 1. The barbers had to sign non-compete agreements that restricted where they could work.
2. A staff manual detailed the dress code, attendance policy, duties, and stated there was no need to encourage customers to return to the specific barber.
3. The barbers did not set their own schedule, were not allowed to choose hair products, and were required to wear specific uniforms.
4. The non-compete did not prevent the barbers from working for other salons outside the prohibited territory.
5. The barbers set their own schedules, wore what they wanted, and were free to choose hair products.
6. The barbers used their own equipment.
7. The barbers had the opportunity to double their guaranteed hourly rate from tips and sales commissions.
The trial judge ruled that the barbers were properly independent contractors. The Eleventh Circuit affirmed the trial court’s ruling, noting that the attorneys for the barbers failed to seek a directed verdict during trial. 1. Independent contractor misclassification is still a major problem across many industries, including construction, nursing, staffing, oil and gas, landscaping, care services, janitorial services, Internet and cable services, along with transportation and trucking.
2. Non-compete agreements are generally considered antithetical to classification of a worker as an independent contractor, as independent contractors are thought to have the freedom to work for whomever they want. It is a red flag if a company requires a worker to sign a non-compete agreement and simultaneously classifies them as an independent contractor.
3. It is prudent for both employers and workers classified as independent contractors to speak with an employment attorney concerning their classification, especially if they work in one of the industries commonly associated with independent contractor misclassification. – Employers should ensure workers classified as independent contractors sign an independent contractor agreement to deter them from questioning their classification.
– Workers classified as independent contractors but primarily working for one company should consult an employment attorney to determine if they are owed overtime wages.
– Cantrell Astbury Kranz, P.A. is a litigation boutique focusing on non-compete and unfair competition disputes, employment law, and business disputes in Florida and Georgia. – Breach of contract, partnership disputes, and franchisor-franchisee conflicts are common business disputes addressed by Cantrell Astbury Kranz, P.A.
– The firm also deals with securities and FINRA matters, defamation, libel and slander cases, sexual harassment claims, non-competes and employee mobility issues, unpaid commissions and bonuses disputes, discrimination, harassment, and retaliation cases, as well as Family and Medical Leave Act and executive compensation matters.
– Cantrell Astbury Kranz, P.A. is a trial law firm that structures its practice into serious personal injury, commercial litigation, and employment law practice groups.
– The firm has successfully resolved claims on behalf of single clients and groups working collectively.
https://caklegal.com/misclassified-independent-contractor-court-reiterates-test-context-salon-industry/
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