On August 29, 2019, the National Labor Relations Board ("NLRB") issued its decision in Velox Express, Inc. and Jeannie Edge, Case No.: 15-CA-184006, an important decision that relieves private sector employers from liability under the National Labor Relations Act ("NLRA") for misclassifying employees as independent contractors. According to the NLRB, an employer essentially forms a legal opinion regarding the status of workers as independent contractors or employees, and its communication of that legal opinion to its workers is privileged by Section 8(c) of the NLRA, even if the opinion winds up being erroneous.
The Velox Express case represents another pro-employer decision by the NLRB, which has been chipping away at several of the decidedly pro-union rules and decisions advanced by the Obama-era NLRB. For those wishing to review the entire opinion, visit the NLRB's website at: www.nlrb.gov.