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Appeals court rejects employer scheme forcing workers to form shell corporations

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In a decision handed down December 22, 2025, the United States Court of Appeals for the Second Circuit ruled that employers cannot dodge employment protections simply by requiring workers to create corporations and sign contracts through those shell companies. The case, involving two truck drivers and a baking company, offers a clear warning to HR departments everywhere: courts will look past corporate paperwork to see what is really happening on the ground.

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