In re Velox Express, Inc.

On August 29, 2019, the National Labor Relations Board (NLRB) reversed an Administrative Law Judge’s (ALJ) decision that, if allowed to stand, would have automatically converted a company’s honest but mistaken classification of an employee as an independent contractor into a federal unfair labor practice. The decision was a victory for WLF, which filed a brief in the NLRB proceeding contending that such a rule would impose novel, unprecedented liability on vast numbers of American businesses to the detriment of the nation’s economy. The Board agreed with WLF that, given how easily good-faith misclassifications can occur, mere misclassification is no basis for federal liability.