Oil Patch Is Hotbed Of Independent Contractor Misclassification

Locke Lord Houston Partners Michael Rose and Bill Swanstrom and New York Partner Richard Reibstein co-authored an article examining the increase of independent contractor (IC) misclassification lawsuits for companies that operate in the oil patch. The authors inspect recent cases affecting companies in the oil and gas industry to portray the types of IC misclassification challenges that are afflicting companies in this industry as well as provide practical steps for a company to minimize IC misclassification liability. 

The authors concluded: “There are no shortcuts or “quick fixes” when seeking to enhance IC compliance, and ‘one size fits all’ solutions are likely to be ill-fitting. Companies that rely on ICs should seek out sustainable solutions that offer state-of-the-art approaches to enhancing IC compliance. While such an approach is more time-intensive, a customized approach is far more likely to effectively minimize IC misclassification exposure.”

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