David beat Goliath, employers sometimes beat the DOL! — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily

David beat Goliath, employers sometimes beat the DOL!

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in Compensation and Benefits,Human Resources

A Texas company has been awarded attorneys’ fees as compensation for aggressive DOL tactics.

Recent case: Gate Guard provides security guards at remote oil drilling sites. It considers the guards independent contractors and pays them a set fee per day.

When a former guard told his drinking buddy—a DOL inspector—about the practice, the litigation wheels were set in motion. But the inspector had no experience in misclassification. That didn’t stop him from recommending a lawsuit against Gate Guard.

The case was dismissed when it became apparent that the guards were legitimate independent contractors and that the investigation was badly flawed. As punishment, DOL was ordered to pay Gate Guard’s legal fees. (Gate Guard v. Perez, No. 14-40585, 5th Cir., 2015)

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