DOL Issues Controversial Guidance on Determining Worker Status

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In new guidance for determining whether an individual is an employee or independent contractor for purposes of the Fair Labor Standards Act (“FLSA”), the U.S. Department of Labor (“DOL”) states that under the broad “economic realities” test – which is the governing test for determining an individual’s status under the FLSA – most workers are employees. DOL points out in this regard that the “economic realities” test is broader in scope than the “common law” test, which applies for other purposes, e.g., federal employment taxes. Read more…

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