Member News - TAGLaw

“The real importance of this week’s supplemental ruling for businesses is that not only can David take on Goliath and win the fight, but David can also get reimbursed by Goliath for having to fight in the first instance,” said Daniel Pipitone, shareholder with Munsch Hardt Kopf & Harr (Texas, USA) and lead counsel on the case since the initial filing in 2011.

The U.S. Department of Labor is being held accountable for over-reaching its authority and this week was ordered to pay nearly $600,000 in attorney fees and expenses, as a result of the agency’s wrongful employee misclassification case against Corpus Christi-based Gate Guard Services, L.P. In the future, if an employer is unjustly accused of independent contractor misclassification, this unprecedented ruling will give them added protection to defend that business model, and will have wide-ranging implications in the oil and gas industry, as well as other sectors that use contractors.

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