"Attorneys React to DOL Misclassification Guidance," Law360
In an article published on July 15, 2015 by Law360, Steven Whitehead provides perspective on the U.S. Department of Labor’s recent guidance on determining whether a worker is an independent contractor or employee under the Fair Labor Standards Act. “The Department of Labor’s guidance regarding the proper classification of workers as independent contractors combines the FLSA’s 'suffer and permit' definition of the word 'employ' with the 'economic realities test' used by courts to evaluate employment status,” Whitehead told Law360. “The guidance is heavily reliant on self-serving case-law analysis and barely mentions the existence of contrary law. This announcement makes it clear that DOL will be more active and aggressive in investigating worker misclassification claims. Employers should closely evaluate the status of every individual who is performing work for the company and ensure that those employees are properly classified.” Law360 subscribers may view the full article online here.