Time Warner Settles Temp Suit with DOL

The suit, filed in October 1998, concerned a claim by the Department of Labor that alleged the media giant illegally denied full-time workers pensions and health benefits by classifying them as temporary or contractors.

As part of the settlement, certain temporary workers and independent contractors who provided services for Time Inc. from 1992 to 1997 that complete appropriate documentation outlined in the settlement will receive an undisclosed amount.

First Impressions
 
The original suit marked the first time that the Clinton administration formally weighed in on a growing trend by companies to gain flexibility in managing employment costs and variable production cycle needs by farming out work to employees who aren’t considered full time.

The DOL had said that Time continued to classify employees as temps even though they worked for the company beyond the time guidelines suggested by the company, and classified others as contractors, even though “common law” tests of employer control of day-to-day activities might suggest otherwise.

The DOL and Time Warner agree that the settlement is not an admission of any liability or wrongdoing by Time Warner or its publishing unit, Time Inc. The case has been dismissed with prejudice.

– Nevin Adams  editors@plansponsor.com