NEWS ALERT- FINAL RULE ON EMPLOYEE VS. INDEPENDENT CONTRACTOR STATUS UNDER FLSA

On January 6, 2021, the U.S. Department of Labor announced a final rule clarifying the standard for employee versus independent contractor status under the Fair Labor Standards Act. It outlines how employers can properly classify workers as independent contractors, instead of as employees (and thereby, avoid minimum wage and overtime requirements when appropriate). While the DOL final rule, scheduled to take effect on March 8, 2021, gives employers more leeway in classifying workers as independent contractors, it remains to be seen whether the Biden administration will favor the rule or delay its implementation. 

The Nuts and Bolts!

In the final rule, the DOL:

Nothing in the rule prohibits states from adopting more stringent standards.

Here is a link to the final rule.


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