Labor Law -- 2020



Franze v. Bimbo Bakeries USA, Inc.   (2nd Circuit)

Defending the independent contractor model

The NAM filed an amicus brief to seek to uphold a district court ruling granting summary judgment for defendant Bimbo Foods Bakeries in a putative class action brought by delivery drivers who allege that the company misclassified them as independent contractors and, as a result, they are entitled to overtime pay and other benefits guaranteed to employees under the Fair Labor Standards Act (FLSA) and related New York state labor laws. A federal district court applied a well-established set of factors to determine whether the drivers were independent contractors or employees including the degree of control exercised by the alleged employer over the drivers, the drivers’ opportunity for profit or loss and their investment in the business, and the degree of skill and independent initiative required to perform the work, among others, ultimately concluding that the drivers were indeed independent contractors. Many manufacturers contract with independent contractors and have a significant interest in the proper interpretation of laws that implicate the distinction between employees and independent contractors. On appeal to the 2nd Circuit, the NAM filed a coalition amicus brief which explains that the independent contractor business model is common across a diverse range of industries and offers significant benefits to businesses and contractors alike. On Sept. 15, 2020, the court affirmed the lower court's summary judgment ruling in favor of the defendant.


Related Documents:
NAM brief  (February 10, 2020)