DOL Issues New Guidance on Independent Contractor Misclassification

On July 15, 2015, the U.S. Department of Labor issued an “Administrative Interpretation” regarding the classification of workers as either employees or independent contractors under the Fair Labor Standards Act.  According to the DOL, the correct classification of workers “has critical implications” and the misclassification of employees as independent contractors “is found in an increasing number of workplaces.” The Interpretation sets out the DOL’s position on the “economic realities” test–the test utilized by courts to determine if a worker is an employee or independent contractor–and ultimately concludes that “most workers are employees under the FLSA.”

To read The Kullman Firm’s Special Bulletin on this new interpretation, click here.