On July 15, 2015, the
Department of Labor's Wage and Hour Division (WHD) issued an
interpretation of how to determine if a worker is an employee or an
independent contractor in relationship to the employer.
WHD assumes most
workers are employees under the Fair Labor Standards Act (FLSA).
Because of ambiguities and vagueness in the statutory definition of this
employment relationship, federal courts have fashioned a test for
determining the status of a worker under the FLSA. The WHD
Interpretation provides an analysis of the courts' economic realities
test and the application of factors that the WHD will be used to
determine if a worker is an employee or an independent contractor. Read more.