06 Jan U.S. Department of Labor Announces Final Rule to Clarify Independent Contractor Status under the Fair Labor Standards Act
The U.S. Department of Labor today announced a final rule clarifying the standard for employee versus independent contractor status under the Fair Labor Standards Act (FLSA). Sharpening the test to determine who is an independent contractor under the FLSA makes it easier to identify employees covered by the Act, while recognizing and respecting the entrepreneurial spirit of workers who choose to pursue the freedoms associated with being an independent contractor. The Final Rule includes the following clarifications: Reaffirms an “economic reality” test to determine whether an individual is in business for him or herself (independent contractor)...