News & Analysis as of

Independent Contractors Fair Labor Standards Act (FLSA) Internal Revenue Service

Independent contractors are individuals or entities that perform work for other individuals or entities, but are not employees of those individuals or entities. Whether a worker is an employee or an independent... more +
Independent contractors are individuals or entities that perform work for other individuals or entities, but are not employees of those individuals or entities. Whether a worker is an employee or an independent contractor is not always an easy determination. However, due to differences in tax and liability treatment, misclassifying an employee as an independent contractor can have serious consequences. Autonomy is the defining feature of independent contractor arrangements. Independent contractors control the manner and method of how work is performed while payers control the desired result. Control over schedule and number of hours worked, ownership of equipment or tools, permanency of relationship, and acceptance of jobs from multiple entities are all possible factors in determining whether a worker is an employee or independent contractor.   less -
Cozen O'Connor

Do Recent Changes and Legal Challenges to the Independent Contractor Test Affect OSHA?

Cozen O'Connor on

Businesses have struggled with the determination of who is an independent contractor vs employee for many decades. One of the challenges rests with the fact that the applicable legal test may be different depending on the...more

Dunlap Bennett & Ludwig PLLC

The Department Of Labor’s New Rule: Employee Versus Independent Contractor?

In the dynamic landscape of federal regulations, significant changes have emerged in 2024 that businesses need to be aware of. One of these changes includes the redefining of the classification of “independent contractors”...more

ArentFox Schiff

10 Legal Issues for Nonprofit and Association Leadership in 2024

ArentFox Schiff on

As 2024 gets underway, the nonprofit sector will continue to face new challenges in addition to grappling with ongoing challenges that continue to impact the sector. Our interdisciplinary team, serving thousands of nonprofits...more

Keating Muething & Klekamp PLL

Department of Labor Announces New Independent Contractor Rule to Go into Effect March 11, 2024

On January 9, 2024, the Department of Labor announced that the changes to its independent contractor rule under the Fair Labor Standards Act (FLSA) which were proposed last year will go into effect starting March 11, 2024....more

Kohrman Jackson & Krantz LLP

Common Mistakes New Business Owners Make & How to Fix Them

Starting a new business? The U.S. Bureau of Labor Statistics indicates that 20% of new businesses fail in the first two years, 45% in the first five years. As daunting as those figures may seem, there are measures you can...more

Smith Gambrell Russell

Annual Party Poopers’ Guide to the Holidays: The Office Holiday Party is Back and So Are We

Smith Gambrell Russell on

Over the past two years, employers dealing with the COVID-19 pandemic were forced to hold their holiday celebrations virtually via Zoom, or maybe even scrapped such events altogether given the circumstances. This year,...more

Rumberger | Kirk

Out with the New: Rescission of DOL 2021 Rule Could Make Independent Contractors Full-Time Employees

Rumberger | Kirk on

A newly proposed federal regulation could flip the script for employers across the country that utilize independent contractors in day-to-day business. A proposed rule by the Department of Labor Wage and Hour Division was...more

Warner Norcross + Judd

What’s Old Is New Again: DOL Proposes a Sort-of-New Employee v. Independent Contractor Rule

Warner Norcross + Judd on

Here we go again! It seems like lately, every time a new presidential administration is elected, we get new rules that overturn existing rules that often go back to other, even older rules....more

Sheppard Mullin Richter & Hampton LLP

U.S. Department of Labor Announces Withdrawal of Trump-Era Independent Contractor Rule

On May 5, 2021, the U.S. Department of Labor (“DOL”) announced it is officially withdrawing, effective May 6, 2021, the rule promulgated under the Trump administration addressing the standard to determine whether an...more

Ballard Spahr LLP

DOL Publishes Proposed ‘Independent Contractor’ Rule

Ballard Spahr LLP on

The U.S. Department of Labor (DOL) yesterday issued a proposed rule addressing when a worker will be an independent contractor (rather than an employee) under the Fair Labor Standards Act (FLSA). Under the proposal, the...more

Dickinson Wright

Keepin' It Real: Wage and Hour Issues in the Reality TV Industry

Dickinson Wright on

In September 2014, four reality TV participants on the show Texas Car Wars sued the network Megalomedia for violating the Fair Labor Standards Act (“FLSA”) alleging that Megalomedia did not pay them in full for their time on...more

Burr & Forman

IRS Misclassifications and Costly Penalties: Independent Contractor or Employee?

Burr & Forman on

Failing to properly classify an individual as an independent contractor can result in expensive penalties to the employer – imposed by both the United States Department of Labor and the Internal Revenue Service. As it...more

Foley & Lardner LLP

DOL Issues Opinion Letter Clarifying Employment Status in Gig Economy

Foley & Lardner LLP on

On April 29, 2019, the Department of Labor issued an opinion letter FLSA2019-6. In fall 2018, several employer groups sought clarification from the DOL on worker classification as employees versus independent contractors. In...more

Obermayer Rebmann Maxwell & Hippel LLP

Secretary of Labor Withdraws Previous Guidance on Joint Employment and Independent Contractors

In a Department of Labor news release yesterday, new U.S. Secretary of Labor Alexander Acosta announced the withdrawal of two Obama-era Administrator Interpretations, effectively rolling back the scope of the Fair Labor...more

Troutman Pepper

March 2016 Independent Contractor Misclassification and Compliance News Update

Troutman Pepper on

The cases reported in this update continue to reflect the fact that IC misclassification cases cut across virtually all industries. Below are IC misclassification cases from such diverse industries as insurance, ride-sharing,...more

Foley & Lardner LLP

Just Because You Say It, Doesn't Make It So

Foley & Lardner LLP on

Many companies in the technology industry pay workers as “independent contractors” or “1099 workers.” In theory, classifying individuals as independent contractors rather than employees can bestow significant economic...more

Jaburg Wilk

The Death of the Individual Independent Contractor: A Growing Trend Points to an Uncertain Future

Jaburg Wilk on

It should come as no surprise that the workplace environment is rapidly changing. In the past, many industries have routinely hired temporary or part time workers and called them independent contractors. After all, it is a...more

Buchalter

Combatting Employee Misclassification under the FLSA

Buchalter on

Correctly classifying a worker as an employee or an independent contractor is critical. Misclassification of employees as independent contractors has been occurring in an increasing number of workplaces, and the Department of...more

Laner Muchin, Ltd.

USDOL Issues New Guidance Stating That Most Workers Are Employees, Not Independent Contractors

Laner Muchin, Ltd. on

On July 15, 2015, the USDOL issued guidance for determining whether a worker is an employee or an independent contractor under the FLSA. The main takeaway from the guidance is that when analyzing the applicable independent...more

Baker Donelson

Employee Health Care Plans: Tips for Navigating the Affordable Care Act Requirements

Baker Donelson on

The United States Supreme Court upheld the Affordable Care Act (the "Act") in a recent decision involving the use of the insurance exchanges. Employers are now certain that they must deal with the requirements of the Act...more

K&L Gates LLP

DOL Issues New Guidance on Independent Contractors

K&L Gates LLP on

The misclassification of employees as independent contractors continues to be a hot issue and to receive attention at the state and federal levels. Last week, the U.S. Department of Labor, Wage and Hour Division (“DOL”)...more

Ervin Cohen & Jessup LLP

“Heads, You Lose! Tails, I Win!” No Matter Which Way You Play It, The Department Of Labor Interpretation Of Independent Contractor...

The Department of Labor’s Wage and Hour Division has issued an “Administrator’s Interpretation” that elucidates the DOL’s views on the issue of who is an employee and who is an independent contractor under the Fair Labor...more

Cooley LLP

Alert: New DOL Guidance on Classification of Workers as Employees or Independent Contractors

Cooley LLP on

On July 15, 2015, the Wage and Hour Division of the Department of Labor (the "DOL") issued a fifteen-page "Administrator's Interpretation" (the "Interpretation") on the appropriate classification of workers as employees and...more

Foley & Lardner LLP

DOL Fires Across the Bow of Businesses Underway With Independent Contractor Manpower

Foley & Lardner LLP on

Employee classification issues have been a recurrent topic of ours, and with all the class action litigation arising from independent contractor and other classifications, we have had no shortage of opportunities to remind...more

Stinson LLP

U.S. Department of Labor's New Guidance on Independent Contractors Highlights a Key Risk Area for Employers

Stinson LLP on

Businesses should carefully assess any independent contractor arrangements in light of an “Administrator’s Interpretation” issued on July 15, 2015 by the U.S. Department of Labor’s Wage and Hour Division (DOL). While the...more

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