Case: U.S. District Court Orders Release of Taxpayers’ Tax Returns in Workers Misclassification Case

The U.S. District Court ordered the release of taxpayers’ tax returns in a workers’ misclassification case. Taxpayers, a group of workers, asserted claims against their employer for alleged misclassification under the Fair Labor Standards Act (FLSA). The employer requested Taxpayers’ federal and state tax returns, specifically Schedule C and Schedule F, to obtain information about Taxpayers’ income, business deductions, and expenses. Taxpayers objected, claiming the tax returns were subject to a qualified privilege. The court applied a two-prong test to determine if the qualified privilege was overcome, examining whether the returns were relevant and needed. The court held that the ...