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New DOL Rule Brings Clarity to Differences Between Independent Contractors and Employees

On January 27th, The Department of Labor (DOL) issued final regs to determine if a person is an independent contractor or employee under the Fair Labor Standards Act (FLSA).


We shared this news on LinkedIn last week because we feel it's an important distinction for companies to get right.


You can read the entire article DOL Finalizes Rule That Relaxes FLSA Independent Contractor Test here or at the U.S. Department of Labor Website here.


According to World at Work, in their article, "the U.S. Department of Labor (DOL) finalized a rule on Wednesday that revises the model for businesses to legally classify workers as independent contractors under the Fair Labor Standards Act (FLSA).


The rule will provide organizations across the United States a legal framework for classifying workers as independent contractors rather than employees, who are covered by federal minimum wage and overtime law. The new rule is considered a more employer-friendly interpretation of employee status under the FLSA than what was applied during the Obama administration."



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