The judge's analysis turned on worker classification factors including creative control, specialized skill, project-based compensation, and the nature of Lively's engagement. The dismissal in April 2026 left a narrower set of claims intact, including contract and retaliation allegations under state law. Those remaining claims were later settled without monetary payment or admission of wrongdoing.
The case matters because it illustrates how employment status—a threshold legal question—can foreclose entire categories of federal protection before a court ever reaches the merits of harassment allegations. In entertainment and other industries built on project-based work, the independent contractor classification can be outcome-determinative. Attorneys representing talent should scrutinize engagement agreements and consider whether their clients' actual working conditions align with the stated contractor status, since misclassification arguments may preserve access to federal remedies even after a dismissal on classification grounds.