On January 9, 2024, the US Department of Labor (DOL) issued a final rule that provides revised guidance on whether a worker is properly classified as an employee or independent contractor under the Fair Labor Standards Act (FLSA). Under the FLSA, employees are entitled to minimum wage and overtime pay, while independent contractors are not.… Continue Reading
Gig Economy
FTC and NLRB Announce New Coordination Efforts
By Brian D. Pedrow & Kyle I. Platt on
The Federal Trade Commission (FTC) and the National Labor Relations Board (NLRB) recently announced a Memorandum of Understanding (MOU) resolving to enhance the enforcement of federal laws and regulations administered by these agencies, and to promote interagency collaboration through information sharing, cross-agency training, and coordinated outreach. The stated goal is to “better root out practices that harm workers in the ‘gig economy’ and other labor markets.” … Continue Reading
Biden Administration Rescinds Employer-Friendly Independent Contractor Test
By Emily J. Daher & Shannon D. Farmer on
On May 6, 2021, the Department of Labor (“DOL”) issued a final rule, effective immediately, withdrawing a pro-business independent contractor rule that would have made it easier for businesses to classify workers as independent contractors, rather than as employees who are entitled to minimum wage and overtime pay under the Fair Labor Standards Act. … Continue Reading
Employer-Friendly Independent Contractor Test is on the Chopping Block
On March 2, 2021, the United States Department of Labor (“DOL”) announced that it is officially delaying the effective date of the rule titled “Independent Contractor Status under the Fair Labor Standards Act.” The effective date for the rule has now been delayed 60 days from March 8, 2021, to May 7, 2021.… Continue Reading
DOL Withdraws 2019 FLSA Opinion Letters on Independent Contractors and Compensable Time for Truckers
By Shannon D. Farmer & Karli Lubin Talmo on
On February 19, 2021, the U.S. Department of Labor’s Wage and Hour Division (WHD) withdrew two FLSA opinion letters, further signaling a return to more employee-friendly policies.
The first, FLSA2019-6, addressed the status of independent contractors for an unnamed virtual marketplace company (VMC) and took a more expansive view of independent contractors than the WHD’s approach during the Obama Administration.… Continue Reading
Lawmakers Reintroduce the PRO Act to Promote Union Organizing
By Emily J. Daher & Brian D. Pedrow on
On February 4, 2021, the Senate Committee on Health, Education, Labor and Pensions (HELP) reintroduced federal legislation designed to significantly expand the rights of workers to unionize and enhance protections to employees whose efforts to do so are impeded by employers, or who are retaliated against for engaging in protected activity.… Continue Reading
DOL’s Approach to Independent Contractors under the FLSA in Flux Following Change in Administration
By Shannon D. Farmer & Tara L. Humma on
When someone should be treated as an independent contractor has huge implications for companies under a variety of state and federal laws that have their own standards. Unfortunately for employers, the DOL’s view of how the so-called economic reality test under tCathe FLSA should be interpreted is in flux, making compliance very challenging.… Continue Reading