For the past several years, the New York State Department of Labor (DOL) (Administrative Law Judge Section, Division of Appeals) has gone out of their way to re-classify independent contractors to employees is several industries.
A few closest to our hearts are the courier/trucking and independent musicians. Through tireless efforts by Consultech and different law groups that we work with, the tide is beginning to turn.
Recently, we have received several decisions favorable to our clients in their pursuit to use the independent contractor business model.
Here are just a few:
Matter of Freight Trans and First Global Logistics: The DOL initially re-classified an independent, long haul trucker, to employee status after he filed a claim for benefits. It took several months and 4 hearings but Consultech was successful to overturning the initial determination. This was a huge win for our clients as they were facing Unemployment Insurance and Workers’ Compensation Audits. Both audits were canceled and our clients are back to business as usual.
Matter of American Delivery: This case began in 2012 and our client was subject to an adverse decision by an administrative law judge. Through the efforts of Consultech and our partners at SCI and Segal McCambridge, the Appellate Division overturned the decision and found that the claimant was an independent contractor under New York Law. This is huge victory in New York because it is the first positive decision in many years specifically for the courier/messenger industry.
Matter of Marc Opas: Perhaps one of our sweetest victories was for Marc Opas Entertainment. Marc was a sole proprietor who was being audited by just about every state agency as a result of one unemployment case. This case took 3 years to resolve but, in the end, we prevailed and tens of thousands of dollars in assessments were wiped out. This was truly a win for the little guy.
Finally, Consultech prevailed in New York for one of our largest clients and one of the largest “last mile” companies in (North America). What made this case special was that we were successful in convincing a judge that although there were previous appeal board cases against this company, similarly situated should and could not be considered as each case should be considered on its own merits. (This case is currently under appeal by the DOL)
If you can win in New York, you can win just about anywhere. But remember that the best defense is a good offense. Keep your business model in check by periodically self-auditing.
Give us a call and find out how we can help you!
<end>