Misclassifying Workers Doesn’t Violate Labor Law, NLRB Says (2)

Employers don’t violate federal labor law by misclassifying their workers as independent contractors instead of employees, the National Labor Relations Board ruled on Aug. 29.

The 3-1 ruling in a case involving Velox Express Inc. rejects a legal theory advanced by the Obama-era NLRB General Counsel Richard Griffin, who had convinced several administrative law judges to rule against companies for misinforming workers about their employment status.

The NLRB reversed a judge’s ruling that Velox unlawfully interfered with its workers’ rights under the National Labor Relations Act by wrongly telling them that they’re independent contractors. Unlike employees, contractors have no rights ...