<img height="1" width="1" style="display:none;" alt="" src="https://px.ads.linkedin.com/collect/?pid=3500553&amp;fmt=gif">

New Guidance for Classifying Independent Contractors Published by the DOL

By OutSolve - Oct 23, 2020 2:26:04 PM - 1 MINS READ

Five factors identified to guide the economic dependence analysis

On September 22, 2020, the DOL proposed new regulations to codify criteria to identify independent workers under the Fair Labor Standards Act (FLSA). If the regulations are implemented they will provide a framework for employers to classify workers as independent contractors when compared to current case law.

The proposed rule relies strongly on an economic reality test that considers the following factors: (1) whether a worker is in business on his/her own or independent or (2) whether the worker is economically dependent on another company for work and therefore, is an employee. Proposed are the following five factors to guide the economic dependence analysis; however, the list is not exhaustive nor is a single factor dispositive, even though the first two factors carry more weight.

  1. The nature and degree of the individual’s control over the work.
  2. The individual’s opportunity for profit and loss.
  3. The amount of skill required for the work.
  4. The degree of permanence of the working relationship between the individual and the employer.
  5. The determination of the work being a part of an integrated unit of production.

The regulations were published in the Federal Register on September 25, 2020 and are subject to a 30-day comment period which expires on October 26, 2020.

For more information about the proposed regulations and how to provide comments, click here.


Related Posts:

OutSolve Experts to Present at NILG 2021 National Conference

Jul 28, 2021 2:19:47 PM - READ TIME 2 MINS

The NILG 2021 National Conference takes place August 1-4, 2021 in Nashville, TN. The conference brin...

Maya Raghu Joins the OFCCP as Deputy Director for Policy

Jul 22, 2021 4:50:02 PM - READ TIME 1 MINS

Maya has over 20 years of experience in public policy, stakeholder engagement, and litigation center...

OFCCP Enters into Conciliation Agreement with the Worley Group to Resolve Alleged Gender, Race, and Ethnicity-Based Pay Discrimination

Jul 19, 2021 10:04:46 AM - READ TIME 2 MINS

Worley Group will pay $500,000 in back pay and interest and $500,000 in salary adjustments

Leave a Comment