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When it comes to staffing an organization, there are more options than the traditional full-time, closely supervised W-2 employee. Many organizations leverage independent contractors, a type of worker that is treated differently for both employment law and tax purposes, and that offers both advantages and disadvantages when compared to traditional workers. Understanding Independent Contractors Independent […]
With its 2024 Loper Bright decision, the U.S. Supreme Court rejected the long-standing doctrine of Chevron deference, under which courts deferred to federal agencies’ interpretation of a statute when the text was ambiguous. The decision is already affecting numerous federal regulations. 5th Circuit Considering Whether to Remand Trump OT Case The U.S. 5th Circuit Court […]
After nearly four years of court battles, Proposition 22—also known as the Protect App-Based Drivers and Services Act—has been upheld by the California Supreme Court. The voter-enacted law allows drivers for app-based transportation and delivery companies—also known as “network companies”—to be classified as independent contractors, as long as several conditions are met. Summary of Proposition […]
The U.S. Department of Labor (“DOL”) published a final rule (the “Final Rule”) in January of this year, which took effect March 11, 2024, and changed how the DOL analyzes whether a worker is properly classified as an employee or independent contractor under the Fair Labor Standards Act (“FLSA”). Employers that misclassify individuals as independent […]
Employers have seen an enormous number of changes recently to various rules about how they manage their employee base. This includes a notice of proposed rulemaking by the Federal Trade Commission (FTC) in late 2023, sweeping memoranda from the National Labor Relations Board (NLRB), and final rules from the NLRB on joint employment. All of this is […]
Employers worried about the effect of a new joint employer rule are breathing a sigh of relief after a court blocked its implementation, and now employers using independent contractors may also be feeling better. A new rule from the National Labor Relations Board (NLRB) would have made it harder for employers to avoid joint employment […]
Recently, the U.S. Department of Labor (DOL) issued its final rule on employee or independent contractor classification under the Fair Labor Standards Act (FLSA). This new rule, effective March 11, 2024, closely follows the DOL’s 2022 proposed rule, rescinding and replacing the 2021 Independent Contractor Status Under the FLSA Rule (2021 IC Rule). The 2021 […]
On January 9, 2024, the U.S. Department of Labor’s (DOL) Wage and Hour Division (WHD) released a final rule—going into effect beginning March 11—that will determine whether a worker can be classified as an independent contractor as opposed to an employee under the Fair Labor Standards Act (FLSA). The 2024 rule modifies regulations by adopting […]
The U.S. Department of Labor (DOL) has published its final rule on the classification of workers as either employees or independent contractors (ICs). Under the rule, the DOL returns to the “totality of the circumstances test,” with a focus on workers’ economic dependency on their employers. Why Properly Determining Worker Status Is Important Whether a […]
A final rule from the U.S. Department of Labor (DOL) means employers can expect a much tougher time justifying a worker’s status as an independent contractor—a fact that has big implications for the gig economy and has attorneys who advise employers urging caution. The final rule, announced on January 9 and scheduled to be published in […]