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REGULATORY UPDATE: Department of Labor's Wage and House Division Issues Interpretation on the Identification of Employees Who Are Misclassified as Independent Contractors

Posted By Administration, Tuesday, September 01, 2015

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.

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