In the News: Rachael Rustmann Published in HR Morning on Worker Classification and the Blake Lively Lawsuit
Constangy employment attorney Rachael Rustmann authored an article for HR Morning examining how a threshold worker classification question ended Blake Lively's federal harassment and retaliation claims.
Rachael highlights that Lively's Title VII claims were dismissed because the court found she was an independent contractor, not an employee. Title VII applies only to employees, and that single distinction meant the court never evaluated the alleged sexual harassment, hostile work environment or retaliation on the set of "It Ends with Us." The determination turned on a multifactor analysis, including Lively's creative control, the specialized and project-based nature of her role and a compensation structure tied to the production rather than a traditional salary.
The article underscores that worker classification carries consequences well beyond payroll and taxes. HR teams must ensure consistency between contracts, day-to-day management and compensation structures to maintain a defensible classification. Importantly, contractor status does not eliminate all liability the state anti-discrimination and anti-retaliation laws may still apply, and in this case, several of Lively's state law claims survived and ultimately settled.
"Classification may limit exposure, but that does not mean it eliminates it," Rachael said.
To read the full article on HR Morning's website, click here.
Rachael defends employers in a wide range of employment law matters, with extensive experience handling wage and hour litigation, discrimination, retaliation, and wrongful termination claims. She represents employers in lawsuits and arbitrations nationwide and regularly advises clients on compliance and litigation strategy under the FLSA, Title VII, and other federal and state employment laws. Rachael is known for delivering practical, business-focused guidance tailored to employers’ operational needs and legal risks.
