Department of Labor Announces Proposed Regulations Regarding Worker Classification Under the FLSA

On September 22, the U.S. Department of Labor ("DOL") announced new proposed regulations regarding when workers can be classified as independent contractors under the Fair Labor Standards Act (“FLSA”). The FLSA requires companies to provide overtime pay to, and to keep certain records for, employees but not independent contractors. If finalized in its current form, the rule would set a DOL standard that largely eases companies’ ability to classify workers as independent contractors under the FLSA and, if afforded deference by the courts, could impact the way that judges across the country analyze classification under the statute.

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