Use of Non-Competes Cited as Factor Against Independent Contractor Status

Use of Non-Competes Cited as Factor Against Independent Contractor Status

Requiring independent contractors to sign non-competes may contribute to a finding that they were misclassified employees entitled to overtime, according to a decision from the Northern District of Illinois. In Perez v. Super Maid, LLC, No. 11-C-07485 (N.D. Ill. July 14, 2014), the court granted a motion for summary judgment by the U.S. Department of Labor alleging that Super Maid violated the Fair Labor Standards Act (FLSA) by treating its maids as independent contractors. The court entered judgment against the defendants in the amount of $184,505.26 and issued an injunction prohibiting defendants from violating the FLSA in the future.

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